Every third new fossil fuel car is purchased by a leasing company

Every third new fossil fuel car is purchased by a leasing company
Short-term fossil profit: More than 4,000 fossil fuel cars have been acquired in Norway by companies running short-term rental services – and that’s just in the first half of 2023.

Every third new fossil fuel car was purchased by a leasing company. This could be devastating for the climate target to be achieved in 2025, says Christina Bo of the Electric Vehicle Association.

For car rental companies such as Avis, Hertz, Europcar and others, it makes economic sense to buy and rent petrol, diesel and hybrid cars.

More than 30 percent of new fossil fuel cars purchased in Norway are used for short-term rental.

– It is bad advertising for Norway when foreign tourists come to the country of electric cars in Norway and a fossil car is offered as a rental car, says General Secretary Kristina Boe from the Electric Car Association.

4,000 fossil fuel vehicles for short-term rental in the first half of 2023

Almost everyone buys electric cars, but in the rental and company car market there are still a large number of fossil fuel cars being purchased.

From January to July this year, 12,646 new fossil fuel cars were sold in Norway. About 4,000 of them were taken by companies running short-term rentals, according to estimates from NHO Mobility, which regulates most car rental companies.

– We know that those who manage short-term rentals also want to be part of the green transition, says Christina Bo.

Calls to action: – We must ensure that rental cars are emissions-free, and this is urgent, says General Secretary Christina Bo of the Electric Vehicle Association.

Bo is concerned that we won’t reach the goal of zero-emission new car sales in 2025, so she believes it’s important to take action when new car sales fail.

We must ensure that rental cars are emissions-free, and this is urgent. The government must come up with a solution that will make electric cars also compete when car rental companies buy cars.

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Small market – big EV problem

If you want to rent an electric car, there is a good chance you will be offered a fossil car.

There may be several reasons why electric cars have a hard time competing with fossil cars for short-term rental.

Purchased electric cars are exempt from VAT, but on the other hand, there is full VAT on renting an electric car.

In addition, charging an electric vehicle may be more difficult for people who only rent cars for a short time, rather than those who own the car permanently.

A German couple wanted to spend a holiday in Norway “the country of electric cars” and rented an electric car in Gardermoen:

I got a rental car that had an almost empty “tank” and constantly had charging problems

In addition, the electrification of vehicle fleets means that leasing companies must have sufficient charging facilities at delivery points.

– Whatever the reason, the authorities must quickly develop a plan on how to solve this problem, says Bo.

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Leasing and leasing destroy the 2025 target

The Electric Vehicle Association recently indicated that we are not on track to reach the 2025 target of zero-emission new vehicle sales. In mid-2023, 83% of new car sales will be electric cars, and this percentage has not increased since the beginning of 2022.

The Electric Vehicle Association has calculated that electric vehicles must make up 90 percent of new vehicle sales in 2023 if we are to be on track to reach the 2025 goal.

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– Individuals who decide to buy a new car, fortunately, mostly choose an electric car. So it’s stupid that corporate cars are slowing the transition to electricity, concludes Christina Poe.

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Hanisi Anenih

Hanisi Anenih

"Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst."

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