Leasing an electric car: a full guide

Leasing an electric car is a great way to get to know the new technology set to dominate our roads. Interested? Here’s your starter guide to leasing an EV

Words by: Andrew Woodhouse

Additional words by: Autotrader

Last updated on 30 October 2026 | 0 min read

Are you thinking about leasing an electric car? You're in the right place. Our guide here covers every step, from helping you decide whether an EV is right for you, to explaining exactly what leasing is and how it works. We'll also help you with some tips on caring for your new electric car throughout the time of your lease. Let's get started.
• What is car leasing? • What's included in a lease ... and what isn't • Pros and cons of electric car leasing • Are electric car leases expensive? • Do I still have to lease a battery separately? • How to lease an electric car • Choosing electric and hybrid car lease deals • Insuring, maintaining and charging an electric lease car • Survey: try an EV before you buy

What is car leasing?

What is car leasing? Leasing lets you drive a brand-new car for a fixed monthly payment over an agreed period, usually two to four years. It is also known as Personal Contract Hire (PCH). In effect, you rent the car rather than own a depreciating asset, making many motoring costs easier to manage in one place. A lease usually starts with an upfront payment, known as the initial rental, plus a one-off processing fee. You then pay a fixed monthly amount for the rest of the contract. The cost depends on the car’s list price, the size of your initial payment, your annual mileage and whether you add a maintenance package. Unlike Personal Contract Purchase (PCP), a PCH lease does not give you the option to buy the car at the end, so there is no final balloon payment. You simply return the vehicle when the contract ends. Leasing may suit you if you enjoy driving a new car and changing it regularly.

You can learn much more about the difference between PCH and PCP deals in our guide here.
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What's included in a lease... and what isn't

Leasing with Autotrader includes:

• Your brand-new car

• Free delivery to mainland UK

• Full manufacturer's warranty

• Vehicle Excise Duty (Road Tax)

• Free collection at the end of your contract Leasing doesn’t include:

• Fuel (or electricity if you’re leasing an EV)

• Insurance. You’ll still have to sort out your own insurance policy.

• Servicing, replacement tyres and maintenance… but it can do. See below.

Find electric car lease deals on Autotrader.
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Audi e tron

Pros and cons of leasing an electric car

One attraction of choosing an electric car in a fast-growing market is the chance to use the latest technology early. Leasing can make new EV technology accessible across a wider range of budgets, often with a relatively low initial payment and manageable monthly costs. Because agreements typically last two to four years, you can change cars regularly and move to a newer model with updated technology. However, EV leasing will not suit everyone. Electric cars can cost more to insure than comparable petrol or diesel models, although lower charging costs and tax benefits may help offset this.

Pros of leasing an electric car:

A broad range of new electric cars is already available to lease, with more models expected over the next few years. EVs are popular for their environmental benefits, but they can also offer lower running costs and substantial tax advantages over petrol and diesel cars. As with any lease, EV monthly payments are fixed. When you return the car, you are insulated from changes in its resale value or demand. If you are unsure about switching to electric, a lease lets you try an EV for a fixed period. You can experience current battery and in-car technology without tying up your money in a model that may soon be superseded. Because you return rather than sell the car, you do not have to manage depreciation. This can be especially useful while EV technology is advancing quickly and used values are harder to predict. Maintenance costs may be lower because EVs have fewer moving parts than petrol or diesel cars. If you add maintenance cover, it will usually include routine servicing, parts and periodic tyre replacement.

Click here for a full explanation of VED charges.

Cons of leasing an electric car:

Leasing can be an affordable way to drive a new EV, but consider the following points before signing. If you fall behind on the monthly payments, the vehicle may be repossessed. Ending a lease early usually incurs a fee, so you cannot simply cancel without cost. Charges vary by provider but are often around 50% of the remaining monthly payments. Your contract will set an annual mileage limit, with an excess-mileage charge if you exceed it. Estimate your mileage carefully: choosing an unrealistically low allowance may cost more overall. Normal fair wear and tear is expected when you return the car, such as light scratches or signs of regular use. Significant damage is not. Your provider will define what is acceptable, and damage such as kerbed alloy wheels may need repairing before collection. You will not own the car, so you will not build any equity to recover by selling it. Research your options before committing. Our general PCH guide explains the wider advantages and disadvantages of leasing. Read the contract carefully and ask about anything that is unclear so you understand every charge and condition.

You can learn much more about the advantages and disadvantages of leasing in our general guide to PCH here.

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Nissan Leaf

Renault Zoe

Are electric cars more expensive to lease?

EV prices and lease costs have fallen significantly in recent years. As production grows and charging infrastructure improves, prices are likely to continue changing with supply and demand. EVs often use newer, more expensive technology. Check whether features such as high-resolution displays and parking cameras justify a higher monthly cost. As the technology becomes more common, prices should fall, and affordable deals are already available across many models. Most importantly, make sure you can afford the monthly payments, initial rental and processing fee. Back to top

Do I have to lease an electric car battery separately?

No. In the early days of EVs, some batteries were leased separately to reduce the vehicle’s upfront cost and reassure drivers concerned about battery degradation. The separate lease provided its own guarantee. Early Nissan Leaf and Renault Zoe models used this arrangement, but it has largely disappeared. It was complicated, and a decade of real-world use has shown that EV batteries are generally reliable and severe degradation is uncommon. Many EVs now include a separate battery warranty of up to eight years or 100,000 miles, and this is becoming standard across most manufacturers. In practice, the battery warranty will usually extend well beyond the term of an EV lease. Back to top

How to lease an electric car

Applying for an electric lease car is the same as applying for a petrol or diesel one:

• Choose a car

• Complete a credit application

• The provider will check that the monthly payments are affordable

• You may pay a processing fee to secure the order

• The provider will send you a finance agreement to sign

• You’ll set up a monthly direct debit

• They’ll contact you to arrange delivery

• Your initial rental will be taken by direct debit 7 – 10 days after the vehicle is delivered

• Monthly payments will be taken by direct debit

We cover all the steps, including what paperwork you’ll need and how to fill it in, in our guide to starting a car lease.

Read the contract carefully to confirm the mileage allowance and any conditions covering servicing, early termination and missed payments.

What happens if I miss my monthly payments?

If you are struggling to make a payment, contact your provider as soon as possible. They may be able to discuss available options. Repeated missed payments can damage your credit score and may lead the provider to repossess the car. If you are having payment difficulties, speak to your lease provider or contact an organisation such as the Money Advice Service for free, impartial guidance.

Can I end my leasing contract early?

Usually, yes. Most contracts allow early termination, but a charge applies. The amount varies by provider and will be set out in your agreement; as a guide, it may be around 50% of the remaining monthly payments.

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Choosing electric and hybrid car lease deals

When comparing electric car lease deals, focus on these factors:

• Monthly cost, initial rental and processing fee — make sure every payment is affordable

• The car’s specification and technology

• Driving range — newer EVs may cost more to lease, but often travel farther between charges

Here are some of the best electric and hybrid car lease deals available on Autotrader.
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Volvo XC40 EV

Insuring, maintaining and charging an electric lease car

Electric car lease insurance

Because EVs use newer, more complex technology, they can cost more to insure than petrol or diesel models. Compare quotes from several insurers to find suitable cover. The lease company owns the vehicle, so you must take out comprehensive insurance as its registered driver.

Learn more about car insurance policies.

Leasing with a maintenance package

For an extra monthly cost, you can add a maintenance package to cover many expenses during the lease. These packages usually include servicing, repairs, tyres, replacement exhausts, breakdown cover and MOT tests. Manufacturer warranties cover some faults, but generally not consumables such as tyres and wiper blades or routine servicing. A maintenance package can make your monthly costs more predictable.

Charging an electric lease car

You can charge an electric lease car at home or on the public charging network.

Charging a lease car from home

A dedicated home charger lets you recharge overnight and may qualify you for cheaper electricity tariffs. Installation usually requires private off-street parking, such as a driveway or garage.

Learn more about charging from home.

Charging a lease car in public

If you cannot install a home charger, or need power while travelling, use the public charging network. The UK public charging network is expanding quickly. Costs and charging speeds vary by network and charger type, including slow, fast and rapid units. Apps such as Zapmap can help you find nearby charge points.

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Home charging

Survey: Would you consider a ‘try-before-you-buy’ scheme for a new electric car?

Our recent survey found that 70 per cent of the 2,025 UK drivers asked would be interested in leasing an electric vehicle for two or three years before they committed to buying one outright. This ‘prolonged test-drive’ would give them opportunity to get to grips with the features and technology, and dispel any lingering doubts they have about EV technology.
For more on leasing download the full ‘Long-Term Test Drive’ report here.

Tackling EV uncertainty

Of those asked, 73 per cent said they’d consider buying an electric car in the next four years, though 40 per cent had doubts about whether an electric car would suit them or that electric cars were all they claim to be. • 51 per cent said range anxiety put them off buying an electric vehicle, even though the average electric vehicle today can travel more than 200 miles on a single charge. • Similarly, a lack of available charging points across the UK (49 per cent) and in local areas (48 per cent) was cited as an issue, despite there now being more than 75,000 public charging points in the UK. • Other common concerns were the cost of the electric car itself (44 per cent of respondents) and how long it would take for the batteries to recharge (42 per cent). That said, our market research has found a whopping nine out of 10 consumers are worried about the impact of petrol and diesel cars on the environment and support schemes to help motorists to go green.

Leasing could help you make the right EV decision

A try-before-you-buy approach, where leasing essentially acts as a prolonged test drive, would give most drivers enough time to thoroughly trial an EV model and get answers to their concerns. As most leases last two to three years, this gives drivers the time they need to fully get to know the vehicle and understand their feelings about it. In the case of EVs, this would provide plenty of time to help drivers dispel any worries, become accustomed to the technology and see how accessible and easy charging can be. It’s also a fraction of the price of purchasing outright, so if after two years you’re not sold, you can simply return the vehicle. Leasing is an increasingly popular choice among those considering traditionally fuelled cars, too. Of those asked, 38 per cent said they had previously been nervous to buy a new car outright, and 66 per cent thought think leasing a car before purchasing it outright was a sensible idea as it would help them to be sure the car is right for them. Our research also covers the most important factors UK drivers consider when purchasing a new car, including good fuel economy (65 per cent), low maintenance costs (56 per cent), and how enjoyable it is to drive (55 per cent). Download the full report for free. Back to top

Leasing an electric car: a full guide

What is car leasing?

What's included in a lease... and what isn't

Find electric car lease deals on Autotrader.
Back to top

Pros and cons of leasing an electric car