Is leasing an electric car worth it?

Is electric car leasing worth it?

Picture this: you’re standing in a car showroom, surrounded by gleaming vehicles, each one promising cutting-edge tech, the best fuel efficiency, and the smoothest ride.

The salesperson is throwing numbers at you—monthly payments, interest rates, leasing options.

Your mind races.

Should you buy? Lease? And with the 2030 ban on new petrol and diesel car sales creeping closer, is electric car leasing the smartest way forward?

A decade ago, the choice was simple—buy a petrol or diesel car and keep it for years.

Today, with the rise of electric vehicles (EVs), leasing is a tempting option: lower upfront costs, no depreciation worries, and the flexibility to upgrade as technology evolves.

Choosing a car isn’t just about getting from A to B. It’s one of the biggest financial commitments you’ll make, right after buying a home.

So, let’s break it down and figure out if leasing an electric car is the right move for you.

How does electric car leasing work?

Imagine driving a brand-new electric car without a hefty price, or the worry of depreciation. That’s the appeal of leasing.

Instead of buying the car outright, you pay a fixed monthly fee to use it for a set period—usually two to four years.

Rather than paying for the full cost of the car, leasing only covers the value it’s expected to lose during your contract. This often makes it a more affordable way to drive the latest EVs.

At the end of the lease, you return the car. There’s no need to sell it or worry about how much it’s worth.

Then if you want to switch to a newer model, you can start a new lease with the latest the market has to offer.

And with an ever-growing number of new car manufacturers entering the market, you'll be spoiled for choice—brands like BYD, GWM ORA, and NIO are just a few standout examples.

Most types of leasing include road tax for at least the first year, and you can add a maintenance package to cover servicing and repairs, helping you avoid surprise costs.

There are a few things to keep in mind. 

You’ll agree to a mileage limit at the start—go over it, and there’s a fee. And while everyday wear and tear is expected, any significant damage could mean extra charges when you hand the car back.

Leasing gives you access to the latest electric cars with lower upfront costs and fewer long-term worries.

If you like the idea of driving an EV without committing to ownership, it could be the right choice for you.

Pros of electric car leasing

Leasing an electric car comes with plenty of benefits, making it an attractive option for many drivers. Here’s why it might work for you:

• No huge upfront payments – Unlike buying, leasing doesn’t require a big lump sum. You’ll usually just pay an initial deposit and fixed monthly payments.
• No large sums of money tied up in a depreciating asset – EVs, like all cars, lose value over time. With leasing, you don’t have to worry about depreciation.
• Access to the latest models – Stay ahead of the curve with the newest electric cars, upgraded tech, and improved battery ranges.
• Avoid the stress of selling – No need to worry about finding a buyer or negotiating a trade-in. When the lease ends, you simply return the car.
• Bundled maintenance costs – Many leasing deals offer maintenance packages, meaning you can roll servicing and repairs into your monthly payment.
• A new car every few years – If you love driving something fresh, leasing makes it easy to upgrade without the hassle of ownership.
• Flexible terms – Choose a lease length, mileage allowance, and optional extras that fit your lifestyle and budget.

For many, leasing offers a hassle-free way to drive electric without the financial commitment of buying.

But it’s not for everyone—next, we’ll explore the potential downsides.

Cons of electric car leasing

While leasing offers plenty of perks, it's not for everyone. Here's what to keep in mind before deciding:

• Mileage limits – Every lease comes with a mileage cap. Go over it, and you’ll face excess mileage charges.
• No ownership – You never own the car, so there’s no option to keep it at the end of your lease.
• Requires a good credit score – Leasing companies run credit checks, so if your score isn’t great, you may struggle to get approved or face higher payments.
• Limited customisation – Unlike owning a car, you can’t make major modifications to a leased vehicle. Any modifications need to be run past the funder.
• Early termination fees – If you want to end your lease early, you’ll likely have to pay a fee.
• Excess damage charges – Normal wear and tear is fine, but any significant damage beyond the guidelines will cost you if not fixed when you return the car.

While leasing offers flexibility and lower upfront costs, it’s important to weigh these factors against your driving habits and long-term plans before deciding.

There is also the option for Contract Purchase and Hire Purchase, which allows you to own the car at the end of the contract.

Electric Car Leasing vs Buying: What’s best for you?

Both leasing and buying are popular options, and both have their benefits (and disadvantages).

But what works best depends on your needs and preferences. Let’s break it down:

You should lease a car if:

• You want lower, fixed monthly payments – Leasing offers the advantage of more affordable monthly payments compared to buying outright in one large chunk.
• You like the idea of swapping your car every few years – Leasing lets you upgrade to a new model regularly without worrying about the long-term commitment.
• You’re going to lease the car for your business – Leasing can be a tax-efficient option for business owners who need a car for work.
• You want to be able to easily budget your outgoings – With fixed monthly payments, leasing makes it easier to plan your finances.
• You want to access the latest tech and safety features – Leasing gives you the opportunity to drive the newest cars with cutting-edge technology and improved safety features.

You should buy a car if:

• Ownership is important to you – If you prefer owning your car outright and having the freedom to keep it for as long as you like.
• You plan to drive the same car for more than four years – If you’re in it for the long haul and don’t mind keeping your car for a while, buying can be a better option.
• You don’t want an annual mileage limit – Leasing often comes with mileage restrictions. If you drive a lot, buying might give you more freedom.
• You know your financial position might change significantly – Buying may give you more flexibility in the long term, especially if your financial situation changes.
• You’re not fussed about accessing the latest technologies – If you’re happy with an older model, buying could be a more cost-effective option.

Ultimately, it comes down to what suits your lifestyle and preferences.

How the 2030 Petrol & Diesel Ban affects leasing and EVs

The clock is ticking. In 2030, the UK is banning the sale of new petrol and diesel cars—a big leap towards cleaner air and fewer emissions.

While it might feel like 2030 is a long way off, electric vehicles (EVs) are already making their mark, and the shift is happening faster than you think.

You’ve probably noticed it already: fewer new petrol and diesel cars are hitting the streets, and more electric models are rolling in.

The future is clear—electric power is here to stay. But, like with any major change, the road to full EV adoption has its bumps.

One of the big hurdles still standing in the way of widespread electric car use is something called "range anxiety." Simply put, it’s the fear that your EV will run out of juice before you reach your destination, leaving you stranded and scrambling for a charging point.

Even though electric cars have come a long way in terms of range, the fear is still real for many.

But here’s the thing: it’s not just about how far your car can go on a charge. It’s also about the charging stations. Are there enough places to plug in? How easy is it to find one when you need it, especially if you don’t have a private driveway to install your own?

Despite these concerns, the 2030 ban is pushing manufacturers to go all-in on EVs. As more people seek cleaner, greener options, the infrastructure for charging points is growing too, making it easier to rely on an electric car for everyday use.

Plus, with the car industry shifting focus, we’ll see even more EV models hitting the market with improved ranges, making them an even more practical option for everyone.

So, while it might take a little while before EVs completely take over, the 2030 ban is speeding up the process.

The future of driving is electric—and with advancements in tech and more charging stations popping up, range anxiety will soon be nothing but a distant memory.

Best electric cars to lease right now

These are just some of our favourite electric cars available for you to lease at the moment. Check them out, there’s sure to be one that tickles your fancy.

• Ford Explorer
• Ford Capri
• CUPRA Born
• Volkswagen ID.7
• Mercedes-Benz EQE
• Polestar 3
• MG4
• Mazda MX30
• Peugeot E-2008
• Vauxhall Grandland
• Hyundai Kona
• Peugeot E-5008

Final verdict: Is electric car leasing worth it?

With the 2030 ban on petrol and diesel cars just around the corner, the shift toward electric is no longer a distant thought—it’s happening now.

The infrastructure is growing, making it easier than ever to drive an electric car.

Leasing is a great way to make this transition more affordable and hassle-free.

It allows you to drive the latest EV models with cutting-edge tech and improved battery ranges, all without the hefty upfront cost.

Thinking of leasing an electric car for your business? There are plenty of benefits, including tax incentives, exemption from congestion and clean air zone charges, and more.

Not sure if you’re ready to take the full plunge into electric? Hybrid car leasing offers a great middle ground, helping you ease into the future of driving while preparing for the 2030 ban.

So, if you want to stay ahead of the curve, enjoy the latest advancements, and avoid long-term commitment, electric car leasing could be the perfect fit for you.

FAQs for electric cars

How much is Road Tax for an electric car?

From April 2025, electric cars will begin paying Road Tax. Here’s how it breaks down:

• Vehicles registered on or after 1 April 2025: £10 in the first year, then £195 annually.
• Vehicles registered between 1 April 2017–31 March 2025: £195 annually.
• Vehicles registered between 1 March 2001–31 March 2017: £20 annually.

Do electric cars increase your electric bill in the UK?

Naturally, charging an electric car will cause a slight increase in your electricity bill.

However, it’s still much cheaper than filling up with petrol or diesel.

There are ways to maximise your range, and there are even apps that will charge your car at optimum times, when the rates of electricity are cheaper, saving you that little bit extra of your hard-earned cash.

Do electric vehicles hold their value?

Electric cars tend to hold their value slightly better than traditional combustion engine vehicles.

This slower rate of depreciation is driven by factors like the growing eco-consciousness of consumers and the upcoming 2030 ban on petrol and diesel cars.

As demand for EVs increases, their long-term value is set to rise.