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There are many benefits to driving an electric vehicle such as lower road tax, less maintenance, lower running costs, and no congestion charge. Despite the growing appeal of zero CO2 emissions driving, individuals are still unsure about an electric motor because of how quickly the industry is moving forward, with anxieties about the higher up-front costs, the lack of charging points, and range limitations.
The choice between leasing and buying an electric car is a tough call for a lot of people.
Some may prefer to buy a vehicle because they own an asset. In contrast, leasing can be more appealing as it’s often quite stress-free in terms of lower maintenance fees and no hassle of eventually having to sell it.
What are the benefits of an electric car lease?
1. The ability to spread the cost
One of the biggest benefits of leasing an electric vehicle is that EVs are generally more expensive to buy outright than internal combustion engine vehicles (ICEs).
But leasing allows you to spread the cost over fixed monthly repayments.
This is a compelling option, especially if you’re unsure about electric vehicles, as it’s a good way of trying a model out without tying your money up in a car that is a risk of becoming outdated in a few years.
2. Flexibility to upgrade
The EV industry is developing rapidly, which, again means electric vehicles are at risk of becoming outdated quite quickly.
Leasing gives you the flexibility to upgrade and enjoy a brand-new car with the latest technology and safety features every few years. There’s also a wide range of electric vehicles on the market already, and more will enter the market over the next few years, so there will be plenty to choose from when looking for a new car lease.
3. Maintenance packages and fees
In general, electric vehicles have a lower need for ongoing servicing and maintenance and when you lease a car, you drive it for its most trouble-free years.
This makes an electric car lease an even more cost-effective option.
When looking at our electric car lease deals, for an additional monthly fee, you can add a maintenance package which will cover servicing, tyre repair, and general maintenance.
4. No concerns about battery degradation
Do you have concerns about batteries dying over time? The flexibility to upgrade also means that you don’t need to worry about the car’s battery degrading. Most EVs use lithium-ion batteries and although any degrading will be slow and gradual, over time they’ll become less and less effective.
Again, leasing an EV essentially means that you’ll get a brand-new car and therefore a new battery every few years, so the decline in EV battery capacity wouldn’t be a cause for concern.
5. No vehicle depreciation
Vehicle depreciation is the difference between what your car was worth when you bought it, and how much it’s worth if you were to sell it today. Considering how quickly new features are added to new models demonstrates how you would really be making a loss if you were to buy an EV outright.
Concerns over vehicle depreciation when leasing an EV will be non-existent because you won’t own the car and your monthly repayments only cover the depreciation costs of the vehicle which is all set at the start of your agreement.
What are the benefits of an electric car lease for businesses?
Businesses will benefit from EV leasing in almost the same way that a personal customer will.
However, tax incentives are probably the biggest benefit of an electric car lease for a business. For example, you can reclaim 100% of the VAT charged on the monthly leasing cost, but you can’t do this if your company buys the car.
The government also taxes a company vehicle based on how polluting it is. This tax is called Benefit-In-Kind (BIK). Therefore, the electric models have incredibly low BIK percentages which could save your business money.