Electric Vehicle Leasing Stocks That Could Benefit From Rising Petrol Prices

Surging petrol prices linked to conflict in the Middle East are pushing more drivers to look at electric vehicles, and that shift is feeding straight into the used EV and leasing market. Secondhand EV leasing in the UK is reported at 170% year on year, with more salary sacrifice schemes and tax breaks helping drivers spread costs. For you as an investor, that highlights potential opportunities among vehicle leasing, motor finance and EV focused service stocks. This article highlights 3 stocks from our Electric Vehicle Leasing & Motor Finance Companies screener that appear positively exposed to these trends.

Vanquis Banking Group (LSE:VANQ)

Overview: Vanquis Banking Group is a specialist lender focused on customers in the UK and Republic of Ireland who often sit outside mainstream banking, offering credit cards, savings, vehicle finance, loans and second charge mortgages, alongside its Snoop money management app that uses open banking data.

Operations: Vanquis Banking Group generates most of its revenue from Credit Cards at £207.7m, with additional contributions from Vehicle Finance at £48.4m and Second Charge Mortgages at £15.7m, partly offset by a £6.1m loss in Corporate Centre.

Market Cap: £200.0m

For investors watching the shift toward electric vehicles, Vanquis Banking Group offers an interesting mix of growth potential and risk. The group is already active in vehicle finance and has talked about assessing electric and hybrid assets, which positions it to benefit as used EV leasing grows in the UK. At the same time, it lends to financially stretched customers and relies on external borrowing rather than deposits, so credit quality and funding costs matter a lot. Earnings have only recently turned positive again and the share price has been volatile, yet analysts still see meaningful upside if the Gateway technology program, product expansion and tighter risk controls play out as planned. The key consideration is how that balance of opportunity and risk stacks up in detail.

Vanquis Banking Group’s rebound story is gaining traction, yet the market still seems unsure how to price its mix of credit risk and EV exposure. The 3 key rewards and 2 important warning signs (1 is major!) that could change how you see that balance

S&U (LSE:SUS)

Overview: S&U is a long established UK lender that focuses on motor finance for used cars and property bridging loans, helping consumers and businesses access credit where mainstream banks may be less active.

Operations: S&U generates most of its revenue from Motor Finance at £74.6m, with Property Bridging Finance contributing £15.5m and a smaller £3.0m from Central activities, all in the United Kingdom.

Market Cap: £236.3m

S&U sits in the slipstream of rising used EV demand, with its Advantage Finance motor arm already working on funding older, higher mileage electric vehicles and management saying they feel comfortable with long term battery performance. At the same time, Aspen Bridging is growing its loan book and profits, which can offset some of the regulatory and funding pressure in motor finance. It is still important to weigh real risks, including reliance on wholesale funding, tighter regulation and signs of insider selling. For investors who want exposure to UK secondhand EV finance with a long operating history and high reported profit margins, S&U is a stock that may warrant closer examination when considering how it fits within a diversified portfolio.

S&U’s twin engines of used EV finance and growing bridging loans could be masking a much bigger story for long term returns. Get the full picture in the 4 key rewards and 3 important warning signs (1 is major!)

Latitude Group Holdings (ASX:LFS)

Overview: Latitude Group Holdings is an Australian consumer lender that provides personal loans, motor finance, credit cards and related insurance across Australia and New Zealand, including products for car purchases, home improvements, travel, medical costs and solar or battery installations.

Operations: Latitude Group Holdings generates most of its revenue from Australia and New Zealand Pay at A$343.1m and Australia and New Zealand Money at A$199.8m, with a small loss in Other or Unallocated of A$4m.

Market Cap: A$935.7m

Latitude Group Holdings gives you direct exposure to the growth of EV and consumer finance in Australia and New Zealand, with management emphasising agility in pricing and volume so the business can react quickly as funding costs and customer demand shift. The company is priced on a single digit P/E, reports a net profit margin of 17.5% and offers a high dividend yield. However, that payout is not well covered by earnings or free cash flow, and debt is funded entirely through external borrowings rather than customer deposits. The recent ASIC penalties and ongoing compliance obligations add another layer of risk. A key consideration is whether the improving revenue momentum, EV focused asset finance and management’s focus on pricing discipline are enough to outweigh those funding and regulatory pressures.

Latitude Group Holdings appears to be a high-yield, single-digit P/E lender where the real story lies in the trade-off between funding risk, EV exposure and regulation. Get the missing context in the analysis report for Latitude Group Holdings

The three stocks in this article are a starting point. The full Electric Vehicle Leasing & Motor Finance Companies screener has identified 7 more companies with equally compelling narratives through the Electric Vehicle Leasing & Motor Finance Companies screener. Use Simply Wall St to identify and analyze the specific catalysts, funding profiles and EV related narratives that matter most to you so you can focus on the highest conviction ideas.

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If Vanquis Banking Group or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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