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Peugeot sets out EV lease-only policy

Date: 24 September 2010   |   Author: Rachel Burgess


Peugeot is bringing its Ion electric vehicle to market though a leasing-only programme.

The carmaker will offer the Ion for a £415 contract hire lease per month for four years and 40,000 miles including warranty, service and maintenance, an amount that takes into consideration the £5000 Government subsidy. Peugeot says the move will take away customer anxiety and give "total mobility".

"We are taking the risk of the unknown," said fleet boss Phil Robson.

A second owner between four to eight years will also receive a warranty, service package and another 40,000 miles on a leasing contract for "considerably less" than the initial £415. Peugeot refused to reveal a retail price, but said the Ion would be available to buy. However, the brand believes 99.9% of drivers will lease it. Based on a second owner paying £315 over the next four years, which makes the total cost of the car £19,920 over four years or £35,040 across eight.

Due to production limitations, UK volume will be between 300-500 units next year with fleet making up 90% of demand. On sale this December, Robson expects sales to be in excess of 1000 Ions in 2012. "We expect demand to far outstrip supply. There is massive demand from public sector, councils, Transport for London, Olympics 2012," he said.

Peugeot is still working out details with leasing companies regarding supply. "One avenue being considered is a sub-let option. I've got to give confidence to the leasing companies to sell the vehicle," said Robson. "We are keen to work with people where we can maximise volume and the image of Peugeot and expand the brand's model range."

Robson believes the Ion opens the door for the brand's diesel-hybrid vehicles coming next year: "The hybrid market will grow far quicker than the electric vehicle market."

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