5 Reasons To Lease, Not Buy, Your Next Electric Car

Leasing is a great choice for many people thinking about a new car and for Electric Vehicle Leasing in particular it makes even more sense for a number of reasons:

1) De-risking the Residual Value

Electric Vehicle (EV) technology is developing fast so if you buy an EV today you don’t quite know how that car will sit in the used car marketplace in 3-5 years time and that’s where the beauty of electric car leasing comes in, under a lease the cars residual value is fixed by the leasing company when you take out the lease so any major moves in technology or the marketplace are at their risk not yours.

2) Take advantage of upgrades

EVs are a fairly new technology and are constantly (and quickly) evolving so rather than getting stuck in a car with a smaller range leasing enables you to switch to a new lease without the hassle of trying to sell a car as you can lease from 2 to 5 years.

3) Two year leases available to try out which vehicle works for you

Not sure exactly which model of new EV is suitable for you then you can lease for only 2 years, this enables you to thoroughly test the vehicles suitability to your driving situation with many leases allowing you to extend during the contract.

4) Manufacturer and dealer support

Car manufacturers and dealers offer plenty of cheap lease deals and special incentives that can change every day, sometimes this is via a reduced lease rate, increased discount or deposit contribution but either way it reduces the amount the end user has to pay over the contract term and right now manufacturers are looking to get their products on the road.

5) Easy to compare - Total Cost of Ownership

If you're buying a car its hard to compare options as they all have different purchase prices, discounts and residual values etc but when it comes to leasing that’s all don’t for you as the lease rate you see is all you pay and it includes road fund licence for the duration of the lease too, you can also add a maintenance package to help with the comparison.

6) Great for business users

OK I said 5 reasons but for businesses, there is a bonus 6th, business car leasing any car allows most businesses to recover 50% of the VAT on the lease and electric cars are no different and they are extremely efficient from a Benefit-In-Kind Tax perspective too as they will have 0 g/km C02 emissions and as such fall into the lowest tax bracket for BIK purposes, the exact percentage will depend on how far the car can travel in electric only mode (this is know as the emissions free range) so for the 2019/20 tax year the BIK will be 16% and 2020/21 will be anything between 2% and 14% whereas the typical combustion engine vehicle has a BIK of about 26%. It is however important to bear in mind the vehicle needs to be suitable for your business requirements so plan carefully and if in doubt seek expert opinion.

Quick example below:

Take the NISSAN LEAF HATCHBACK Tekna 40KW which you can lease for less than £300 a month, if you were to buy it you would be paying out over £25,000 at a time when Nissan are upgrading the model on a regular basis risking obsolescence.

We have a comprehensive guide on to Electric Vehicle Leasing here and a full range of Electric Car leasing options available from the Smart Fourfour to the fast selling Jaguar i-Pace and everything in between so you are sure to find the perfect electric car for your needs!

Still have questions? Just give us a call on 0330 056 3331 and one of our team can answer them for you.