Many drivers are looking for affordable ways to make the switch from petrol and diesel vehicles to electric cars. A government plug-in grant for new electric vehicle (EV) purchases is one way this is being done, but you can now lease most EVs for affordable, fixed monthly payments.
From choosing the right model of electric car for your needs, to deciding on a charging option which will keep you running smoothly throughout your agreement. Discover how leasing a zero-emission motor works in this guide.
Leasing an electric car is an agreement between you and a finance provider whereby you pay a monthly set fee to essentially rent a brand-new EV on a long-term basis. This will usually be anywhere from 2-4 years, after which you will hand the car back.
Afterwards, you can either choose a new model on a separate contract, or if you’ve kept it in good condition and stuck to your agreed annual mileage cap, simply walk away with nothing more to pay.
Just like if you leased a standard vehicle with a combustion engine, with an electric lease you’ll be required to pay an initial rental upfront for the car and decide how long you want it for and how many miles you want to drive each year.
Remember: The initial rental isn’t repayable but works against the total cost of the car, while higher annual mileages and shorter contracts will tend to result in more expensive monthly payments.
There are some questions you should ask before deciding to lease an electric car:
All electric cars come with a cable that you can plug into a standard domestic socket, which is known as Electric Vehicle Supply Equipment (EVSE).
While charging your electric car from a three-pin socket is good for quick top-ups, it’s no long-term solution for giving your EV juice. Instead, we recommend that you look at installing a home chargepoint to improve overnight charging.
Looking to get the best home charger for your electric car? Our specialist partner Rightcharge compares EV energy tariffs and chargers to get you the best price on a charging solution.
The leasing process for electric vehicles is more or less identical to the one for any other car or van. Where it differs is in relation to what running costs you pay each day and, for business customers, the amount of BIK tax which needs to be paid if employees are driving it.
Here’s a simple breakdown of how to lease an electric car.
The market for EVs is becoming more competitive as the months go by, even more so now that the government has announced a ban on manufacturers producing new petrol, diesel and hybrid models by 2035.
As such, it’s now cheaper than ever to find a competitively priced deal on an electric lease. From the mass-market and family-friendly Nissan Leaf, to the performance-based Tesla Model 3, there’s zero-emission options suitable for most types of drivers.
Many leasing providers are now partnering with charging point installation companies in order to make the process of getting an electric car all the more easier.
All new EVs come with a standard charging cable which allows you to charge the car anywhere you can find a mains. Simply locate the car’s port (usually this will be integrated into the bonnet or around the side where the fuel cap would be), insert the cable into the car and then into your domestic socket.
Here’s an example of what domestic charging* looks like from a standard socket to a faster, more powerful dedicated point in terms of cost, time taken and how much range you receive using a standard Renault Zoe.
| Slow 3kW (using included three-pin to type two cable) | Fast 7kW (wallbox installation required) | Fast 22kW (public/work) |
|---|---|---|
| Time:20-100% in 13.9 hours | Time:20-100% in 5.9 hours | Time:20-100% in 1.9 hours |
| Miles added:184 | Miles added:184 | Miles added:184 |
| Cost:£6.05 per charge but no wallbox or installation costs | Cost:£6.05 per charge plus £879 for charger installation | Cost:£12.48 per charge |
*Figures courtesy of Zap Map, with home charging costs based on the national average cost of 14.4p per kWh.
If you’re considering using strictly public charging points for topping up your new EV, check out the Zap Map locator for finding your nearest access area for charging.
Once you know which electric car you want and how you wish to charge it, you can then start to think about four key factors for configuring your lease deal.
Remember: Electric cars have fewer moving parts and therefore are less likely to require maintenance compared to a regular car, so consider whether it’s cost-effective for you to take out a maintenance package at the time of order.
All lease cars, just like every other car on the road, require you to insure it. Specifically, finance providers who fund each agreement will specify that this needs to be a fully comprehensive insurance policy too, in order to protect their vehicle in the event of an accident.
Remember: Unless your deal is specified as a ‘Total Care’ agreement and states that insurance is included with the monthly payments, it’s your responsibility to arrange for your EV to be insured from the day it’s delivered.
In recent years there’s been a stigma surrounding insurance for EVs, more specifically that it’s always pricier than similar models which run on regular fuel. However, a lot of this comes down to the individual profile of the person looking for a quote, along with other factors such as address, where the car will be parked overnight and what the make and model of the vehicle is.
Insurers are now waking up to the fact that more electric cars are being produced and that there’s a greater number of mechanics developing the skills needed to repair them. However, we still recommend you practice these three things to get the best deal possible for insurance cover.
Remember: After ordering your electric lease car, ask your provider for the registration number of your car so that you can get the most accurate price for the vehicle.
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