Low risk and lower costs make leasing the ideal way to get your hands on a new electric car

There’s a looming deadline on all our minds.

Labour has reinstated the ban on selling new petrol and diesel vehicles to begin in 2030. It’s a gamechanger that promises to shake up the status quo – and quite a bit earlier than expected.

And we don’t need a crystal ball to see the future is in electric vehicles.

But with high outright costs, the risk of depreciation, and concerns around battery longevity, you might be hesitating to make the switch – no matter how crucial it is to reduce road emissions.

Luckily, buying an EV outright is not your only option.

There are loads of benefits to leasing a new vehicle, especially EVs. It’s a hassle-free way to test one out for a set period, while spreading the cost into more affordable monthly payments.

And you can hand it back when the lease is done.

Sounds like a win, right?

So, whether you already have a car in mind, or are looking at your options for the future, we’ve outlined why electric car leasing is the way to go.

BMW i4

Spread the cost of your electric car

Chatting about cars is kind of the mainstay of our whole business. And one thing we hear a lot when it comes to EVs, is that they can be on the pricier side.

And if you’re buying one outright, they can be.

But leasing calculates the costs differently.

EV lease payments are based on the expected rate of depreciation over the term, and you’re definitely not expected to hand that total over upfront.

Instead, you can spread the cost of the lease so you’re paying it off month by month instead of putting down a really big chunk of cash.

And the flexibility leasing brings means having a lot more control over your monthly total.

You have the freedom to adjust things like your annual mileage and your term, which can really bring costs down.

That flexibility means you can get the best EV lease deals for your budget. Whether you’re a hardcore EV fan or just looking to dip your toes in to the world of electrification, leasing is a smaller financial commitment.

So, go ahead and dip that toe. Test those waters out.

By the time you dive in, you’ll be wondering why anyone would ever do it differently. 

Flexibility to upgrade

No car lasts forever.

Whether it’s a mechanical failure, a write-off event, or the cost of the annual MOT steadily overtaking its remaining value, sooner or later you’ll be needing a new one.

The real trick is in selling at the right time.

But when you have an electric car lease, you don’t need to worry about that.

Car lease deals have a natural end date, which means you have the flexibility to change things up every two, three, or four years.

You’ll be getting your hands on a newer, fancier model with all the latest spec, tech and innovations the EV world keeps dreaming up. 

And there are new players coming. The UK has seen brands like BYD and NIO hit our shores just in the last few years alone – and no doubt there are more to come.

If the EV world is a chocolate box, it’s one that keeps getting bigger every time you come back to the shop.

And by choosing electric car lease deals, you’re giving yourself more chances to sample the selection.

(And maybe find yourself a green triangle while you’re at it).

Save on maintenance packages and fees

In all the talk about the drawbacks of EV driving, here’s a benefit you probably haven’t heard much about: maintenance.

Specifically, a chance to save your pennies on it.

Part of your lease agreement puts responsibility for all regular maintenance and servicing at your feet. And whether you pay one lump sum every year, or spread the cost with a maintenance package, the pennies do start to stack up.

But EVs don’t need nearly as much maintenance as a petrol car.

No oil changes needed: no fuel filter checks required.

It’s making EVs look even more cost-effective, right?

Still, if you’re looking to bundle all your motor costs together for easier budgeting, you can take out a maintenance package on an EV. It’ll cover the perishables (windscreen wipers, we’re looking at you), tyre repair, scheduled servicing and any MOT tests you might need on a long-term lease.

No concerns about battery degradation

This is one barrier to decarbonisation we’re happily kicking down.

Yes, there are worries about the longevity of EV batteries. No one wants to take on the cost of replacing them ten years down the line.

But the beauty of leasing is that the battery life is literally not your problem to deal with.

You’ll be getting a car with a brand-new battery every few years and when it’s time to trade in, it’s up to the funder who owns the car to think about any degradation.

You can simply move on knowing it’s not your circus, or your monkeys.

And listen, if you’re concerned about the sustainability of the EV battery business (recycling them is notoriously difficult currently), take heart. The motor industry may still be working out the kinks, but progress is being made.

The tech is getting better year by year and EV industry leaders like BYD are putting big money behind their batteries, to make them last for longer.

No risks from vehicle depreciation

Vehicle depreciation is the difference between what your car was worth when you bought it, and how much it’s actually worth when you sell it

And as anyone who’s ever bought a car outright knows, it’s an asset which can depreciate really fast.

But when you lease an electric car, it’s never your asset to sell on. And the lease itself protects you from the rate of depreciation by how the payments are calculated.

It’s all worked out on the residual value (RV) – what the funder thinks your EV will be worth at the end of your lease.

Basically, you agree a price based on their prediction and if the car is worth less than expected when your lease ends, it’s up to them to shoulder the financial loss.

And with EVs still depreciating quicker than their petrol counterparts, it makes sense to protect your wallet with a lease.

Hyundai Ioniq 5

Added benefits of an EV business lease

Whether you’re after a business car lease, or a personal car lease deal, choosing an EV means sharing a lot of the same benefits.

But business car leasing has one big difference where EVs are concerned.

Are there two sweeter words in existence than ‘tax-saving’?

We’re talking about the Benefit in Kind (BiK) tax that business customers pay on any company car that’s also used for private use. It’s seen as a perk on top of your salary, so you have to pay tax on it.

And company car tax is based on the vehicle’s emissions. You see where we’re going with this one, don’t you?

Electric cars don’t have emissions, so the monthly BiK tax is way less eye-watering than what you’d pay on a petrol or diesel engine.

So, it’s a chance to make a substantial saving just by choosing an electric car business lease.

As well as BiK benefits, there are electric car salary sacrifice schemes to think about. It’ll provide a really attractive employee perk, while letting you save on National Insurance Contributions and Income Tax at the same time.

It just keeps sweetening the pot, doesn’t it?

When it comes to EVs, electric car leasing really is a no-brainer for everyone.

Whether you’re looking to save on business tax, or want to join the green revolution without taking on the risk of ownership, there’s an EV lease car deal that will work for you.

Laura Henley

Laura Henley

Laura is a Digital Copywriter in our (award-winning) marketing team, tasked with keeping you up to date with all the latest industry news and gossip. With a wealth of experience under her belt, there's no one better to keep you entertained and informed.