Rising Electric Vehicle demand and the evolution of Finance & Insurance

By Martin Jenns, EVP, President

Today, EV demand in New Zealand is rising like never before. Original equipment manufacturers (OEMs), spurred on by zero-emissions targets and encouraged by financial incentives, have introduced many new models. And thanks to the government’s clean-car programme, buyers now receive generous rebates when switching to electric vehicles – up to $8,625 in some cases. As a result, new EV registrations have doubled from 2021 to 20221. And this trend is only accelerating. According to the latest EY Mobility Consumer Index report, a whopping 49% of prospective car buyers intend to go electric for their next purchase2

“New registrations of EVs in New Zealand doubled year over year from 2021 to 2022.”

This surge in demand bodes well for New Zealand’s target of 30% EV market share by 2030. And while great news for the environment and the country, the move to electric vehicles will require a significant change in how dealers serve their customers. This includes F&I protection products, an important component of their revenue.

What to look for in EV protection products

So, how can dealers ensure their F&I office thrives in the EV age? What should they look for in an EV protection product? While the list that follows is by no means complete, it represents some of the core characteristics dealers should look for in EV-specific protection products.

“So, how can dealers ensure their F&I office thrives in the EV age? What should they look for in an EV protection product?”