Electric vehicle leasing is the easy way to make the switch. You get all the benefits of a brand-new vehicle without the hassle of owning it all for an affordable monthly payment.
Leasing an electric vehicle is an agreement between you and a finance provider whereby you essentially pay a monthly set fee to 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 vehicle back.
Afterward, 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, walk away with nothing more to pay.
Just like if you leased a standard vehicle with a combustion engine, with an electric lease, you’d be required to pay an initial rental upfront for the vehicle and decide how long you want it for and how many miles you want to drive each year.
How much does it cost to Lease an EV
A vehicle lease’s monthly payments are based on the difference between its transaction cost and what the vehicle is expected to be deserving when the contract expires, financed at the going rate of interest.
Upfront costs generally consist of the first month’s instalment and the down payment, which can run as much as various thousand dollars. Beyond that, the lessee generally pays for the sales tax and vehicle registration fees, sometimes with a nominal “acquisition fee,” usually wrapped into the monthly payment.
According to the Tesla Motors website, a Model S 100D with a sticker cost of $94,000 is $1,454 for 36 months, with a massive $14,566 due at signing (this contains estimated sales tax and registration fees). The Model X is being suggested this month with a $1,491 payment and $14,719 down. The company presently does not have a leasing program in place for Model 3.
Possibly because General Motors’ federal Electric Vehicle tax credits were recently reduced to $3,750, it prices more than one might think to lease a Chevrolet Bolt Electric Vehicle. Chevy is offering the Bolt through the end of April for $429 a month with a stiff $6,109 due at signing.
Cheapest leasing an Electric Vehicle
Let’s take a look at some options:
Peugeot e-208
Approx range | 217 miles |
Battery | 50kWh |
Top speed | 93mph |
Cost to charge per mile | 3.15 pence |
MG ZS
Approximate range | 273 miles |
Battery | 72kWh |
Top speed | 109mph |
Cost to charge per mile | 4.9 pence |
Vauxhall Cprsa-e
Approximate range | 175 miles |
Battery | 45kWh |
Top speed | 93mph |
Cost to charge per mile | 4.3 pence |
Volkswagen e-up
Approximate range | 125 miles |
Battery | 32.3kWh |
Top speed | 81mph |
Cost to charge per mile | 4.14 pence |
Nissan Leaf
Approximate range | 168 miles |
Battery | 40kWh |
Top speed | 90mph |
Cost to charge per mile | 6.7 pence |
Advantages of Leasing an Electric Vehicle
Leasing a vehicle could be the perfect way for you to drive home in a brand-new vehicle. These are some advantages of leasing your next vehicle.
Lower monthly payments
Leasing allows you to get a brand-new vehicle on your driveway for what is usually a lower monthly price than other finance methods. Because you’re essentially renting the vehicle, you don’t have to worry about depreciation and can change into another new vehicle at the end of the rental period.
Most lease deals are only two or three years long, with no pressure to buy the vehicle at the end of the agreement.
No long-term commitments
At the end of your lease agreement, you must hand the vehicle back with no further fees, or you can start again with a new contract on a new vehicle.
It means you’re not tied to a long contract, and very little long-term commitment is involved. You’re free to move on without the hassle of selling or trading the vehicle.
Minimal maintenance costs
Because PCH deals are on a brand-new vehicle, they’re still covered under the producer’s warranty. The contract’s length means the vehicle is typically warrantied for the entire duration, so you don’t have to worry about potentially expensive repair bills. New vehicles are far less likely to have faults, but if something does come up, the lease company should sort it out and get it back to its best condition.
You might be offered ‘gap insurance as part of the contract. This is there to cover the price of your remaining finance agreement if the vehicle is stolen or written off.
The monthly costs of leasing a vehicle can often be lower than the prices involved in PCP finance deals because you don’t have the option to buy the vehicle at the end of your finance agreement.
Think of it as leasing the vehicle for a couple of years, like renting a house instead of paying mortgage payments. Besides the initial rental, there aren’t any extra charges, which means you can drive a new vehicle, or a more expensive and better-equipped vehicle, for less money than you might expect.
Disadvantages of Leasing an Electric Vehicle
In some situations, leasing a vehicle may not be the best option.
Here are some disadvantages to leasing a vehicle:
You never own your vehicle
You won’t own your leased vehicle like renting a house instead of buying it. The payments are lower because you get nothing back at the end of the agreement. One of the major benefits of buying a vehicle on some finance agreements is the possibility of being able to drive it without any extra prices after you’ve paid off the entire finance amount. In contrast, you’ll always be paying for a lease.
You’ll be charged for damage
You’ll need to make sure any damage is repaired before you hand your lease vehicle back. While you probably won’t have to pay for mechanical elements covered by the warranty, the leasing company will look for the vehicle to be returned in good condition, so you’ll get charged if you give it back in a bit of a state. Similarly, you’ll be shelling out if you exceed the mileage limits set out in your contract.
Terms and conditions
The terms of a lease are quite restrictive. As well as these potential extra charges, you’ll have to pay more if you want to hand the vehicle back before the end of the contract, which can be a substantial amount. The banker will also want to make sure you can manage the monthly repayments, so you could be subjected to a thorough credit history check and may be rejected from a lease deal if your score isn’t deemed high enough – but this is also the case for other forms of vehicle finance.
Best companies with the best deals to lease Electric vehicles give examples of companies
The electric vehicle market has blown up in the last 12 months, and there have never been more options.
So, there are some of the best leasing deals on the market:
Audi e-Tron
Audi’s first electric vehicle is magnificent. The Audi e-Tron is the producer’s most advanced vehicle and is a fully electric 5-door estate. It has a 186-mile range and all-wheel drive with dual powered motor, with the ability to do 0-60 in about 6 seconds.
Business leasing | €424/mth |
Initial hire cost | €3816 |
Hire term | 48mths |
Jaguar I-PACE
The Jaguar I-PACE may not be the inexpensive EV option on the market, but it is undoubtedly one of the most powerful accessible. Going 292 miles about a single charge, it can gain 60mph in around 4 seconds. The 5-door saloon has a 90kWh lithium-ion battery and comes with their Park Pack as standard, which contains a 3D Surround Camera and Front as well as Rear Parking Aid.
Business leasing | €514/mth |
Initial hire cost | €4626 |
Hire term | 48mths |
Tesla Model S – Long Range
Tesla’s eye-catching Model S affects its all-glass panoramic roof and magnificent powertrain, performing 60mph in just 3.7 seconds with a speed of 155mph and a range of 379 miles. Also combined with the Model S is Tesla’s cutting-edge autopilot system, which allows the car to steer, accelerate and brake automatically for vehicles and pedestrians within its lane.
Business leasing | €621/mth |
Initial hire cost | €5609 |
Hire term | 48mths |
Tesla Model 3 – Standard Plus
Tesla’s more affordable choice still offers a lot for its lower cost. Going from 0-60 mph in about 5.3 seconds, the Normal Range Plus Model 3 has a range of approximately 254 miles (WLPT) and is appointed with a 55kWh battery. Tesla’s autopilot system is usual in their Model 3s, and you can add their Full Self-Driving ability as an optional extra.
Business leasing | €347/mth |
Initial cost | €3127 |
Hire term | 48mths |
Renault ZOE
The Renault ZOE is the most accessible electric vehicle on the market but still has a range of up to 239 miles (WLPT). Additionally, being a zero-emission vehicle, the upholstery is also recycled. Additional extras are combined with the ‘GT Line’ trim, including heated electric door mirrors and automatic rain-sensing wipers.
Business leasing | €176/mth |
Initial hire cost | €1584 |
Hire term | 48mths |
Tesla’s Leasing Deal
You might think that an all-electric Tesla is a bit out of your budget, but several Personal Contract Hire leasing deals could put a Tesla on your driveway for less.
At the time of writing, Tesla isn’t providing any PCH agreements directly. Although many third-party providers have Tesla models in stock, we’ve listed some of the best offers currently available, making it easier to get your hands on a brand-new Tesla.
Tesla Model 3:
- Model: Model 3 RWD 4dr Auto
- Monthly payments: £536.31
- Initial rental: £4,826.79
- No. of monthly payments: 47
- Annual mileage: 8,000
- Excess mileage: charges apply
Tesla Model Y:
- Model: Model Y Long Range AWD 5dr Auto
- Monthly payments: £536.36
- Initial rental: £4,827.24
- No. of monthly payments: 47
- Annual mileage: 8,000
- Excess mileage: charges apply
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