Electric Car Lease Deals

Electric Car Lease Deals

Electric vehicles have gone from a niche curiosity to the future of transportation. With more models available from major automakers and attractive lease deals, electric cars are now an appealing option for British drivers looking to embrace greener motoring.

This surge in electric vehicle popularity is driven by their many benefits over petrol and diesel cars. Electrics produce zero tailpipe emissions, helping tackle air pollution in cities. They offer a smooth, quiet driving experience with instant torque acceleration. And with the UK’s ample public charging network, range anxiety is decreasing.

But the upfront cost of buying an electric car lease outright still deters some drivers. This is where the ability to lease an electric vehicle with lower monthly payments removes a huge barrier. Savvy consumers are now realizing leasing an EV can provide an affordable, hassle-free transition to zero-emission driving.

The Current State of the UK Electric Car Market

The electric car revolution is well underway in Britain. There are now over 200,000 battery electric cars on UK roads, along with over 100,000 plug-in hybrids (PHEVs). Pure electric car registrations more than doubled in 2020 to 108,609 units, despite the overall auto market struggling due to the pandemic.1

Tesla has emerged as the most popular electric vehicle maker in the UK, with the Model 3 being August 2021’s best-selling car of any kind.2 Other leading EV models bought and leased here include the Nissan LEAF, BMW i3, Renault Zoe, and Hyundai Kona Electric.

The UK government offers incentives worth up to £2500 off the purchase price of new electric cars costing less than £35,000 to spur demand.3 Local and national investments are also expanding the public charging network by over 2500 fast chargers across England.4 All this makes owning or leasing an EV more practical than ever.

The Current State Of The Uk Electric Car Market
The Current State of the UK Electric Car Market

Why Leasing is the Affordable Option

Leasing has become a popular alternative to buying a new car outright. Here are some of the top benefits of leasing an electric vehicle rather than purchasing:

Lower Upfront Cost – Leasing an EV means you only pay for the portion you use during the term, not the full sticker price. There’s usually just a modest upfront deposit or activation fee.

Flexible Terms – Most electric car leases are available for anywhere between 12 and 48 months. Two or three-year terms allow upgrading more often as battery tech improves.

Warranties Included – Manufacturer warranties and maintenance plans often come with leasing. This saves on unexpected repair costs. EV maintenance needs are much lower anyway.

Always Up-to-Date – With rapid advancements in driving range and charging times, leasing ensures you always have the latest electric vehicle capabilities.

Tax Savings – EVs have lower taxes in the UK. Benefit in Kind company car tax is just 1% in 2022-23, while private EVs avoid congestion charges.5

For many British drivers, leasing an EV for around £300-£500 per month is far more affordable than buying one outright for £25,000 or more. Leasing opens the door to driving an electric car for a much wider audience.

Why Leasing Is The Affordable Option
Why Leasing is the Affordable Option

Key Decisions When Choosing an Electric Car Lease

With attractive EV leasing deals now widely available, here are the main factors to consider when selecting the right agreement:

Monthly Budget – First determine a monthly spend on lease payments you are comfortable with long-term. Remember to factor in potential electric mileage discounts.

Contract Length – Weigh up whether a short 24-36 month lease allows upgrading regularly or a longer 48-month term provides stability.

Charging Requirements – Ensure accessible home, workplace or public charging is realistically available for your needs. Consider installing a home charger.

Driving Range – Carefully match the EV’s real-world range to your daily commute, with buffer room for longer trips. Test drives help assess this.

Battery Warranty – Opt for a lease deal with a long 8-10 year battery warranty for peace of mind against degradation issues.

Insurance/Servicing – Check if insurance and scheduled maintenance is included in the lease. EV servicing needs are minimal regardless.

Leading Electric Car Models Available for Lease

Many automakers now offer attractive lease deals on their electric car models. Here is an overview of some of the most popular EVs currently available for leasing in the UK:

Tesla Model 3
The California automaker’s most affordable EV, the Tesla Model 3 combines sporty performance with an ultra-minimalist interior. With up to 360 miles of range, this compact luxury sedan is appealing for company car users doing higher mileage.

Nissan LEAF
Nissan’s iconic LEAF hatchback delivers a roomy interior and smooth, quiet performance. The 40kWh model offers up to 168 miles range, while the LEAF e+ extends range to 239 miles. Both qualify for the government plug-in grant.

Hyundai Kona Electric
Hyundai’s quirky electric SUV couples avant-garde styling with a high-tech cabin. Two battery options offer 186 miles or a market-leading 300 miles of real-world range. It’s one of the most affordably leased EVs.

BMW i3
The carbon fiber-bodied i3 brings BMW’s renowned driving dynamics to the EV segment. Zippy acceleration and agile handling make it fun to drive. A diminutive footprint suits city commuting. Optional range extenders are available.

Renault Zoe
Renault’s popular supermini EV provides a roomy, practical hatchback package with lively performance. Head-turning styling and a 52kWh battery delivering 245 miles of range make the Zoe an excellent value proposition.

Jaguar I-PACE
Jaguar’s first electric vehicle, the I-PACE crossover SUV provides a luxurious, driver-focused cabin. Impressive range of up to 292 miles and rapid charging give it long-distance usability. But expect higher lease payments.

Leading Electric Car Models Available For Lease
Leading Electric Car Models Available for Lease
FactorDetail
Lease DurationChoose between short-term (2-3 years) or long-term leases (4-5 years). Shorter is better if you want to upgrade often.
Mileage AllowanceCheck if mileage restrictions match your driving needs. Lower allowances reduce monthly payments.
Down PaymentHigher down payments lower the monthly costs but increase total spending. $0 down keeps monthly fees lowest.
Monthly PaymentBase price depends on make/model and lease length. Credit score affects interest rate too.
Leading Electric Car Models Available for Lease

Where to Find the Best Electric Car Lease Deals

With countless lease providers in the market, it pays to shop around for the best electric car lease deal. Here are some tips:

  • Compare quotes from multiple leasing brokers online. Brokers have access to discounts not advertised elsewhere.
  • Don’t be afraid to negotiate with leasing agents for a better rate. Be persuasive about your positive credit history and rational needs.
  • Consider lease takeovers to assume someone else’s EV lease for the remainder of its term, often at reduced payments.
  • Look for limited-time lease deal promotions run by manufacturers and lenders to incentivize leasing their EVs.
  • Opting for a shorter lease length (2 years) or higher annual mileage allowance can further reduce monthly payments.

Understanding EV Lease Agreements

Before signing on the dotted line, be sure to scrutinize the fine print of any electric vehicle lease contract:

  • Watch for hidden fees and excessive upfront payments that dealerships may tack on.
  • Confirm mileage limits suit your needs and won’t incur overage fees.
  • Check fair wear and tear rules – you don’t want surprise charges at lease-end for minor cosmetic defects.
  • Consider maintenance plans and lease-end purchase options that add value.
  • Opt for guaranteed asset protection to avoid potentially expensive dents/dings charges.

The Outlook for EV Leasing in the UK

The future seems bright for electric car leasing in Britain. Market analysts predict pure electric vehicles will reach over 10% of new car registrations in the UK by 2025.6 Improving battery range and charging infrastructure will continue making leasing an EV hassle-free.

And with the UK mandating a phase-out of new petrol and diesel cars from 2030, zero-emission vehicles will become the norm.7 Attractive lease deals that reduce upfront costs for consumers will likely accelerate this transition.

For environmentally conscious British drivers, right now represents an opportunity to take advantage of the great EV lease deals available from an increasing range of automakers. Affordable, no-strings-attached leasing offers the ideal way to experience the benefits and liberating driving experience only electric cars provide. The time has come to take that test drive and make the eco-friendly switch!

details on UK government incentives for electric car leases:

  • Plug-in Car Grant – This provides up to £3000 off the purchase price of new electric cars costing less than £35,000. It can be applied directly to reduce the upfront cost of an electric car lease.
  • Electric Vehicle Homecharge Scheme – This provides a grant of up to £350 towards the cost of installing a home EV charger. Having home charging makes leasing an EV more convenient.
  • Benefit in Kind tax – Company car tax rates are just 1% of a vehicle’s list price for electric cars in 2022/23, compared to up to 37% for petrol/diesel. This makes EV leasing very attractive for business users.
  • Congestion Charge exemption – Electric cars qualify for an exemption from the £15 daily Congestion Charge in London. This saves EV drivers up to £2700 a year.
  • Workplace Charging Scheme – This provides businesses with tax relief for installing EV charging points at employee workplace parking. This facilitates employees leasing EVs.
  • Zero Percent Company Car Tax – Pure electric cars with a list price under £35,000 paid for by an employer will not attract any company car tax for the driver in 2025-26.
  • Local incentives – Some local councils offer additional EV grants and exemptions from parking fees or road charges to encourage uptake.

FAQs

Q: What are the main benefits of leasing an electric car?

A: The main benefits are lower monthly payments compared to financing, reduced maintenance costs, access to the latest EV tech, and the environmental benefit of driving a zero-emissions vehicle. Leasing also avoids having to worry about resale value depreciation.

Q: What electric cars have the best lease deals right now?

A: Some of the best electric car lease deals are often found on the Tesla Model 3, Chevy Bolt, Nissan Leaf, Kia Niro EV, Hyundai Kona Electric, and Volkswagen ID.4. Manufacturers frequently offer incentives on popular models.

Q: Should I lease through the manufacturer or dealership?

A: Manufacturer leases often offer national promotional pricing while dealers may add their own incentives. Compare options to find the best deal for your selected vehicle.

Q: How can I negotiate the best electric car lease deal?

A: Negotiation strategies include bargaining on price, money factor (interest), fees, down payment, and lease terms. Do research to determine fair pricing and target areas to negotiate.

Q: When is the best time to lease an electric vehicle?

A: Late fall and end of the year are optimal times as dealerships aim to meet annual sales quotas. Holiday weekends are also good times to get a discounted lease.

Q: Are there tax credits available for electric car leases?

A: Unfortunately tax credits only apply to purchases not leases. However, the leasing company may factor available credits into the lease pricing.

Q: Can I purchase my EV at the end of the lease?

A: You can opt to purchase the car at lease end at predetermined residual value, but this is rarely the best option given how quickly EV tech advances.

Q: Is maintenance included with an electric car lease?

A: Basic tire rotations and wiper replacements are often included but you’re responsible for any repairs outside normal wear and tear defined in the lease terms.

Conclusion

In conclusion, attractive electric car lease deals in the UK are making EV adoption more accessible and affordable than ever. With flexible terms, low monthly payments, and hassle-free maintenance, leasing allows British drivers to enjoy all the benefits of zero-emission motoring.

For both private and company car drivers, today’s EV leases offer the perfect opportunity to embrace the electric future of driving while minimizing costs. As the UK moves steadily toward its net-zero emissions goals, expect leasing’s popularity to rise among savvy drivers looking to reduce their carbon footprint.

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