Car Reviews & News

Leasing an electric car

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There are plenty of benefits to making your next car electric, most drivers still have a few questions about how it all works.

This is what makes leasing an electric car such a great proposition – you get to try before you buy.

Electric car leases at a glance

• There’s a wide range of brand-new electric cars available to lease, with more electric cars set to enter the market over the next few years.

• Electric cars are growing in popularity due to their eco-friendly credentials, but they also offer reduced running costs and huge tax advantages compared to petrol and diesel cars.

• Monthly payments for an electric car are fixed, which can help protect you from depreciation or demand slumps when you hand the car back.

• For those who have doubts over switching to electric, leasing is a perfect opportunity to try it out. Leasing an electric car gives you the option of trying the latest technology and batteries, without tying your money up in a model that might become outdated soon.
Nissan Leaf
Renault Zoe

Why lease an electric car?

Be an early adopter
Part of the thrill of getting an electric car, especially in this blossoming market, is that you get to be an early adopter of the latest tech.

Car leasing helps make this new technology more readily available to a wider range of budgets, with lower deposits and monthly payments often available.

As a bonus, car leasing contracts tend to last two to four years, so you’re free to upgrade your electric car on the regular and make sure you’re out driving the latest model with the newest tech.
No need to worry about depreciation
One advantage of leasing is that you don’t have to worry about the depreciation in value of your car – as you won’t be selling it.

You don’t need to worry about selling an electric car with older technology or batteries (and the risk of lower market value), you simply upgrade to the next one.
Lower maintenance costs
As electric cars have fewer moving parts than standard petrol and diesel motors, they tend to require less maintenance. This means they’re usually cheaper to service and repair.

Specifically, electric cars don’t have an Internal Combustion Engine (ICE) – which consists of hundreds of moving parts that need regular maintenance.

If you lease a car, you may be offered a maintenance deal alongside your contract. This will cover repairs and replacements caused by fair wear and tear, so you have less to worry about throughout your lease. Some also include servicing and parts so there are no unexpected expenses. Learn more about car leasing maintenance deals.
Lower (or zero) tax
If you’re buying a brand-new car, then the first year of tax you pay is based on the vehicle’s carbon emissions. Fully electric cars, which don’t have any carbon emissions, won’t have to pay car tax.

Even the eco-friendliest hybrids, those that emit less than 75g/km of CO2, pay £25 or less for their first year – so for a lower car tax bill, electric or hybrid is a no-brainer. The full list of car tax bands is available here.

After the first year, you’ll pay the following:
• £145 per year for petrol or diesel cars
• £135 for alternative fuel vehicles like hybrids
• £0 for fully electric cars

So even if you’re leasing a used electric car, you still stand to save on your annual car tax bill.
Tesla Model S
Tesla Model X

Things to consider when leasing an electric car

Leasing an electric car can be a great way to drive a brand-new car for less, but there are some points to consider before you sign a lease contract.

• If you don’t keep up with your monthly payments, then the car could be taken away.
• If you wish to cancel your lease before the end of the contract, you may still need to pay the full costs of the leasing agreement – you won’t be able to simply end it and walk away.
• Many contracts include extra charges excess mileage and wear and tear, you may have to sign up for a maintenance package too.
• You’ll never own the car, so won’t have any equity from selling it.

Before signing up for a car lease, take your time to research. You can learn more about the advantages and disadvantages of leasing in our guide to PCH leasing.

You can also speak to the lease provider if you have any questions or need anything clarifying. It’s important to check your leasing contract before you sign, so you know how much you’re paying and what it’s all for.

Do I have to lease an electric car battery separately?

With some electric car lease deals, you may have to lease the car battery separately. This is more common in older models, as we’ll explain below.

Before you panic, know that this will be clearly flagged before you sign up. You won’t end up with a car sat on your drive and no battery.

Why do some car leasers offer the battery separately?

Leasing an electric battery separately was more common in the earlier days of electric cars, when the battery technology was rapidly changing.

Customers didn’t want to be saddled with an old and outdated battery, so manufacturers like Renault and Nissan gave them the chance to lease one and trade it in (free of charge) for the latest upgrade after a few years.

Knowing they could replace their battery without having to buy a brand new one also helped settle customers’ range anxiety (the fear that an EV’s battery will run out of charge and leave you stranded on the roadside), and eased fears that their battery would be depleted to the extent that their car would be worth much less if they tried to sell it.

Leasing an electric car battery proved a popular idea, as the Renault Zoe is historically one of the most best-selling electric cars on the market.

Will I have to lease an electric car battery separately?

Nowadays, you’re more likely to lease a battery separately in a used car lease deal. Some new cars do still offer separate battery leases, while manufacturers like BMW, Jaguar, Tesla and Volkswagen just include the battery in the car lease price.

If you choose to lease a battery with a new electric car, then look at the guarantee it comes with. Renault, for instance, guarantee any leased battery will hold at least 75% of its charge for four years or 100,000 miles. If it doesn’t hold its charge, then they’ll repair or replace it for free.
Charging an electric car
EV Dashboard

Electric and hybrid lease car deals

Leasing an electric car can dramatically reduce your impact on the environment and your annual outgoings. Here’s some of the best electric and hybrid car lease deals available on Auto Trader.