Can I lease an electric car? Why should I lease an electric car?
All good questions and ones which are becoming more and more common on Google searches. With so many manufacturers investing into electric-only product, customers are now intrigued about whether or not this would be sensible proposition for them (or their business) and how (or if) it is possible to procure one.
The first query, is it possible to contract hire an electric vehicle, can be answered fairly easily – yes! Contract hire is the foremost way to procure a new vehicle; cash purchases and PCP type approaches are becoming less common for customers getting new cars.
With contract hire you have a contract to use a vehicle for 2, 3 or 4 years and this will be based on your annual mileage (varying from 5,000 to 50,000). The key thing to note is that it is a usership-based product and there is no ability to own the vehicle.
You also have to be aware that this is a fixed term contract and you cannot simply return it/swap it/amend it should the vehicle not be fit for your needs and requirements.
The initial rental, the amount of money you pay in month 1 (also referred to as a “deposit”) can be amended to what is suitable for you – we can offer a no initial rental (zero deposit) up to a high initial rental (or 9 or 12 spread).
The whole focus of contract hire is to get something which meets your needs and requirements. That being said leasing is not always suitable for you, so do consider the full picture i.e. you want to own a car or have a shorter contract.
Why is leasing a great way to get an electric car?
The trepidation and nervousness of many customers is leading to some avoiding it; there are customers who still are unsure if a pure EV will be the right solution for them in the long term. When you see a lot of press coverage focusing on the negativity –
EVs are expensive, there are not enough charge points, their range is insufficient – you can see why committing to a new car purchase would seem a poor suggestion. The benefit of contract hire is that it removes the risks associated with car ownership.
At the end of the contract the vehicle is returned to the finance company. If the car is worth less than was expected, any losses will be absorbed by the finance company and not the customer.
In contrast, what you have to be aware of is that should an EV become a desirable vehicle and the value is more than expected, such reward is withheld by the finance company. This is not something you can benefit from.
The way we explain it to customers is that a 2/3 year contact is a reasonable-term commitment to a vehicle (it really does go quicker than you would think) and if technology improves/EV proves to be less than satisfactory/there are infrastructure changes you can just hand the car back. Sometimes it is better to fix your costs and expenditure rather than take a risk.
Is it businesses only leasing an electric car?
Again, because much focus has been on the fleet market, company car tax and reductions of CO2, you would mistakenly think that a personal lease customer could not (or would not) lease an BEV.
The truth is that a person and business can, in equal measures, explore electric car leasing. Is it cheaper for a business to lease a car?
In most circumstances the prices are exactly the same, it is only the provision of Vat which is relevant to a business (and not to a personal customer) which is why you see the 20% difference.
For a business there are good tax reasons for pursuing contract hire and, due to BiK changes in April 2020, company car drivers will benefit greatly from moving into an EV. However, the eCar Lease team are still supplying personal customers with EV solutions and not just to the “early adopters”.
With customers understanding that electrically powered vehicles are cheaper to run (compared to petrol/diesel) on certain mileages, cheaper to maintain and very enjoyable to drive, attitudes are changing.
Add to that the increasing focus on emission based charging across towns and cities and you can see why an EV may be more cost-effective for you. Whether you are a personal or business customer, you must go through a credit check process in order to procure a new vehicle.
Details of the new electric Mini the eCarLease team reviewed
In terms of the car shown here, the Mini ELECTRIC HATCHBACK 135kW Cooper S 1 33kWh 3dr Auto, this is based on the following configuration:
- White Silver Metallic Paint
- Double stripe cloth – Carbon black with sport seats
- Yellow mirror caps
- Black roof
- 16″ Electric revolite spoke alloy wheels
Equipment for the Mini 1
As standard the car includes heated rear windows, heated washer jets, DSC, hill start assist, black velour mats, Bluetooth with audio streaming, brake energy regeneration, 6.5” screen with LED ring, 4 -speaker sound system, DAB radio, , E badge aesthetics, automatic headlights, LED front lights, rear LED lights, air conditioning, 3-spoke multifunctional leather steering wheel, AC and DC charging capability, sports seats, interior lighting, navigation pack, 60/40 split folding seats, pedestrian protection, immobiliser and alarm system. In terms of additional manufacturer options, you can only change aesthetics on the car – different alloys or colour combinations.
If you want to upgrade your Mini, you need to select:
- A “2” – this will add comfort access system, driver assistant pack, folding and auto-dimming mirrors, front centre armrest, rear parking distance control, rear view camera, heated front seats and a storage compartment pack. There are also further colour and alloy choices plus the benefit of a leatherette upholstery; OR
- A “3” – this will add adaptive LED headlights, front parking sensors, Harmon Kardon music system, navigation plus pack, panoramic glass sunroof and the head up display. Like the above, you have further colour and alloy choices in addition to full leather upholstery.
Technical data on the car
On the technical side company car and business users can note the P11d at £27,320.00 and CO2 at 0g/km. The 32kWh battery offers 184ps and 0-62 times of 7.3 seconds. The car will offer a WLTP range of circa 145 miles, 0-80% charge times from a plug at 12 hours, 4 hours from a 7kW home box or 30-40 minutes on a rapid 50kW DC.
So would this be your select EV leasing option?