Auto loans: Electric cars vs. Conventional cars

Auto loans: Electric cars vs. Conventional cars

Are electric cars the future? Are they a (relatively) safe bet for investors in European Auto ABS?

By analysing more than 22 million auto loans stored in our unique database and originated between 2011 and 2017, we were able to compare loans for electric and conventional cars that went into arrears at least once since the loan origination.

The study shows that loans for the purchase of electric cars went into arrears relatively more often than loans for conventional (petrol or diesel-powered) cars.

Just under 5% of loans for electric cars went into arrears at least once since the loan origination, compared with 4.3% for conventional cars.

Facts:

  • For loans originated between 2011-2013 roughly 8.5% of loans for electric cars went into arrears at least once, compared to 6% of loans for conventional cars
  • For loans originated between 2014-2015 the difference narrowed to roughly 4.7% for electric and 4% for conventional cars
  • For loans originated between 2016-2017, 1.2% of loans for electric cars went into arrears at least once