Nokia 3310 or iPhone 17? Motorola Razr or Google Pixel 10? Smartphone technology has evolved at breakneck speed over the past three decades. As technology has improved, prices have continued to increase. As such, people seldom pay outright for their smartphone – and why should they? Not when they can spread the cost over a few years, ready to upgrade at the end of the contract to get the latest technology.
There are plenty of parallels with electric cars. Remember the days when it was the Nissan Leaf and… well… little else? Today couldn’t be more different. Even at Big Motoring World, where we have electric models from more than 35 brands, there’s so many options to choose from. With that level of competition comes rapid innovation – increased range, better performance, and smarter technology arriving faster than ever before.
Electric cars are moving targets
There was a time when buying a car felt like making a lasting commitment. You’d select a vehicle based upon its reliability and how well it ages, in part because it might be with you for a decade or more. Automotive improvements were slow to arrive and even slower to filter through to the mainstream. In such an environment, keeping hold of a vehicle you could trust made perfect sense.
Times have changed. Significantly. And the electric revolution has transformed the dynamic entirely. It’s also a revolution that continues to be in flux, with improvements arriving apace. A bit like the growth in the world of smartphones. Battery technology takes significant strides in improvements, not baby steps; charging infrastructure likewise, overcoming what has often been seen as a barrier to widespread adoption.
It’s not simply the hardware that continues to change, but software too. Modern electric cars are hugely dependent on digital platforms that can be updated and refined over time. From the infotainment system to driver assistance features, as well as energy management capabilities, the newest models can, like smartphones, be updated over-the-air. And, while such measures help keep systems up-to-date, there’s always potential issues of compatibility and a clear message being sent: each new generation is being equipped with ever-more capability and refinement.
In essence, the result is a marketplace that feels forever fluid. And this has broad implications for not just what you buy, but how long you choose to keep it.
Rethinking ownership
The traditional logic of car ownership was relatively straightforward. Buy a car, maintain it, and keep for as long as it remains reliable. It was all about extracting as much value as possible from the model. Yes, depreciation was a factor, but it was more gradual and thus worked in your favour. In a fast-flowing sector like the electric car market, depreciation is not so much driven by age and wear, but by the advancements in technology.
Remember when your mobile phone didn’t have a camera? Or, it had a camera but was unable to browse the internet? Or, could browse but wasn’t able to make payments? Each new cycle of smartphone would get… smarter. It wasn’t worth hanging onto your handset for too long as you may well feel like you’re getting left behind. We’re reaching that juncture with EVs.
As more new models get introduced, they bring improved range, faster charging, and even more advanced systems. The impact, once more, is to make previous generation models appear dated, even though they continue to perform to a high standard for many years. There’s an underlying psychological factor at play too. What once felt impressive soon becomes standard. And, what once felt standard soon feels limited. It’s only a short hop to feeling that your vehicle is no longer a long-term investment but more of a compromise.
From long-term asset to short-term experience
Let’s return, for a moment, to smartphones. How we use technology has evolved, and so too has how we purchase. Your phone is a product you use intensively for a few years, fully knowing that it will be replaced by something better. Instead of a one-off purchase, the emphasis is on access to the latest technology, with monthly payments making the latest devices accessible.
Cars are the same. Of course, they remain a major life purchase, but they also occupy a similar space in the mindset of consumers. There’s an understanding that each new model represents a step forward in terms of performance, usability, and convenience. It also reframes the concept of value. Instead of questioning how long a car will last, the question becomes how long will a vehicle remain current and meet modern expectations?
A more flexible approach
The shift in mindset from lasting asset to embracing the latest in technology also impacts the way people finance their vehicle. More traditional purchasing methods, which lead to full ownership, are not always suitable or align with a landscape defined by change. This has led to increased adoption of Personal Contract Purchase (PCP) finance for those looking to change models on a more regular basis.
A PCP agreement couldn’t be better suited to electric vehicles. Instead of committing to full ownership from the outset, such a plan operates in a similar way to a smartphone contract, spreading repayments over an agreed period of time and providing flexibility to change at the end of the term.
Big Motoring World’s SmartDrive PCP plan is one that is more attuned to the realities of the electric vehicle market. Instead of making a full commitment to ownership, its defining attribute is flexibility. Of course, if you find the model more than meets your needs and you’re happy to retain it, an optional final payment can be paid and you take full ownership. Or, you have the option to return the vehicle with nothing more to pay. But there’s also a third option.
As you might well do with your smartphone, you simply move over to a new agreement with a newer device – one packed with improved functionality and performance. What makes SmartDrive PCP such a preferred option is that the decision is deferred until the end of the agreement, enabling you to assess your options based on your experience and the current market conditions. You’re not locked in to long-term outcomes at a time when speed of change is difficult to anticipate.
The appeal of the three-year cycle
A three-year purchase agreement for an EV aligns perfectly with the advancement of technology. It acknowledges that an all-electric model is not a static asset in the traditional sense of motoring, but continues to evolve with innovation.
To facilitate this, it makes sense to have a smarter purchasing plan, don’t you think?
You can learn more about SmartDrive PCP and purchasing your electric vehicle with Big Motoring World today. As the official test drive partner of Everything Electric, we’ll also be on-hand at each live event to discuss in person.
About the Author
Stuart Porro is Head of Content at Big Motoring World, helping educate customers about the big wide car world. Stuart has helped create content in the motoring world for a host of manufacturers, including working in motorsport in the British Touring Car Championship, F1 and being the host of the World Powerboating championship.
