Myths of Electric Vehicles and Leasing
Like the growth of many products, the more popular it gets, the more questions, queries and misnomers arise. EV’s have been no different and we have heard a lot of questions from potential and existing customers about electric cars (and vans) while witnessing a lot of information being disseminated in the media; some of it true and some of it not. The idea of “maintenance” has been an ongoing point of contention in contract hire and leasing for some time. The immediate view seems to be that when you lease a car, everything is included and there is no obligation on a customer to manage the service or operation of the vehicle from day to day. To be clear, this is not true.
How does leasing and maintenance work?
To help provide more clarity to customers, you will see two key phrases being used in our industry – 1) driver-maintained; and 2) funder-maintained. With regard to option 1, this is a contract where the customer accepts the responsibility for all maintenance and upkeep of the vehicle. While vehicles are generally brand-new, or pre-registered within the last 3-months, you need to distinguish what is the warranty and what is the maintenance.
A warranty is there to protect a customer against any issues, defects or faults which arise with a vehicle through no fault of their own. Most manufacturers set a 3 year warranty period from the date of registration (this is why pre-reg vehicles need to be more carefully analysed and considered by a customer). Some manufacturers are now setting 4, 5 and 7 year warranties on their product to provide complete consumer confidence. However, the warranty is there to support against any issues.
Every vehicle will need regular servicing and this is available online or in the manufacturer’s handbook. Essentially, every 12-24 months, or after x thousand miles, the car will need to be taken to an appointed manufacturer representative, or a garage using genuine parts, to undergo servicing works. This may include pollen filters, brakes, oil replacements and vehicle software updates. It is important that you do service the vehicle correctly as this is what preserves the manufacturers warranty and this also prevents you from being charged at the end of the contract by the finance company for failing to look after your vehicle properly.
While e-car lease will send you a 12-month reminder from the date of delivery, the car will generally indicate when it needs servicing to be arranged – do not ignore these warnings! Additionally, you will also need to ensure the tyres are replaced at the correct juncture (2mm tread is the limit set by most finance companies) or when you get a puncture / need repair. Tyres must again meet manufacturer recommendations, so do not replace with part-worn or budget tyres. These are costs you must budget into the decision making process.
What is a funder-maintained arrangement?
If you decide to use option 2, the funder-maintained route, you pay an additional amount per month to have much of the above included. Because we work alongside a number of finance companies, they each can operate using slightly different rules when it comes to maintenance. However, the general position is that the cost of all servicing, tyres and maintenance elements are taking into account by the finance company.
You simply need to ring their maintenance number and they will help you to organise your service or tyre replacements. In some cases the finance companies will arrange tyre replacements for punctures not just for wear and tear items. They will even organise a mobile tyre replacement service so you don’t need to incur the time or hassle of arranging this yourself. Another advantage of maintenance is for when the car goes out of its warranty period, which it will do in the case of pre-reg vehicles or on 4 year leasing arrangements.
When a car goes outside the warranty, you are at a higher level of risk and for customers who do not have that appetite, the funder-maintained lease can remove most of their concerns. While the driver is still responsible for organising this, there are no additional costs to be incurred. Funder-maintained arrangements ensure that you simply pay for windscreens and fuel – a true definition of fixed cost motoring!
Do you have to maintain and service an EV?
So do I need a maintenance package for an electric vehicle/EV? The notion of whole of life costs is something which is becoming more prevalent in our industry. Over the last few years, the fixation has been more on the monthly rental and “best-price” achievable. With comparable petrol and diesel cars, this has been an acceptable way of doing things, as all the constituent elements are very much known risks.
However, with electric cars there are new facets which need extra consideration in order to make an informed decision. The obvious comparable is the cost of fuel i.e. electricity vs petrol/diesel. The cost of “fuelling” an EV, particularly at home, is somewhat cheaper than the cost of a full tank of fuel – think £5 to charge an EV against £60/70 to fuel a petrol/diesel car. But add to that the normal running costs of a vehicle and you get a better picture of what the entire arrangement is costing you or the company.
This is even more important for salary sacrifice and company car users where Benefit in Kind, allowable rentals and National Insurance are present. But what about servicing and maintenance of an EV? Like a combustion vehicle, an EV does need servicing, maintenance and tyres. It is not true to say that EV’s do not require any maintenance at all. However, an EV has far less moving parts than a combustion alternative and therefore the servicing obligations are somewhat reduced – the service intervals are generally longer and the costs of carrying them out are lower.
Much of the crucial work to be undertaken with an EV is its batteries, which are clearly the main component of the vehicle. While it has been suggested that tyres on an EV do wear/tear at a slower rate than on a combustion option, they still need to be properly managed i.e. if they incur a puncture or the tread falls below the legal limit, they must be replaced.
Like any vehicle, customers of e-car lease will be presented with the same two options – driver and funder-maintained. Using the information we provide, together with the cost analysis, we encourage a customer to take into account a whole of life cost analysis so they make a decision which meets their needs and requirements. There is no right or wrong answer with this, and each customer will have slightly different considerations.
A big thank you to our preferred Porsche supplier, Porsche Chester , for sending this amazing demo for the e-car lease team to review. For any customers looking for specialist electric sports and performance cars, we couldn’t recommend this team enough.
In terms of the car shown, the Porsche Taycan Cross Turismo 420kW 4S 93kWh 5Dr Auto [5 Seat], this is based on the following configuration:
- Porsche metallic – Jet Black
- Smooth finish two-tone leather – Black/Chalk beige
- Electrically folding exterior mirrors
- Power steering plus
- Fixed panoramic roof
- Porsche electric sport sound
- 21″” Cross turismo design alloy wheels
- Sport chrono package – Taycan
- BOSE surround sound system with 14 loudspeakers
- Matrix LED headlights including porsche dynamic light system plus (PDLS plus)
- Park assist including surround view
- Porsche crest embossed on headrests in front and outer rear seats
- Front and rear seat heating
- 8 way electric comfort front seats
As standard the car includes:
- 11 kW AC onboard charger
- 12V electrical socket in centre console storage compartment
- 12V electrical socket in rear luggage compartment
- 16.8 inch curved touchscreen display
- 2 Speed automatic transmission
- 2 USB-C charge ports in rear
- 2 USB-C connectivity and charge ports in the centre console storage compartment
- 3 point automatic seatbelts with front and outer rear seats pretensioners and fr
- 3×3 point rear seatbelts
- 4 piston aluminium monobloc fixed brake calipers at rear
- 4+1 Seats
- 4-point LED daytime running lights
- 6 piston aluminium monobloc fixed caliper brakes at front
- 60:40 rear seats with 2 seats in single seat look with fold out center armrest a
- Active bonnet
- Active carbon fine dust filter keeps pollen and odours
- Adaptive air suspension including Porsche Active Suspension Management (PASM)
- Adaptive damping system
- Additional ground clearance +20mm
- Air curtain upper valance with vertical air intakes
- Aluminium bonnet with tailgate door, side sections and front wings
- Aluminium double wishbone front axle
- Aluminium multi link rear axle
- Aluminium roof contoured design with dynamic recess profile
- Auto deploying door handles
- Auto hold function
- Automatic headlight activation including welcome home lighting
- Bag hooks in rear luggage compartment
- Brake discs internally vented with 360mm diameter at front and 358mm diameter at
- Brake pad wear indicator
- Bumper system with high strength cross members and two deformation elements + Tw
- Centre console with direct touch control includes climate settings, opening and
- Charge port on driver (AC Type 2) and front passenger sides AC/DC Type 2 CCS Com
- Clothes hooks on B-pillars on driver’s and front passenger’s sides
- Collision and brake assist
- Cross Turismo style lower valance, side skirts and rear diffuser with inlays in
- Curtain airbags along entire roof frame and side windows from A pillar to the C
- DC charging at public charging with 800V
- Digital radio
- Driver and front passenger illuminated vanity mirrors
- Driver and front passenger knee airbag
- Driver personalisation for ergonomic, comfort, infotainment and lighting functio
- Electric drive transmission
- Electric parking brake
- Electrically adjustable and heated exterior mirrors with aspherical on driver’s
- Engine immobiliser with remote central locking and alarm system with radar based
- Folding luggage compartment cover
- Front and rear electric windows
- Front and rear luggage compartments
- Front centre console armrest with integrated storage compartment
- Front side airbags
- Full size driver and front passenger airbags
- Full surface aerodynamic underbody panelling
- Fully galvanised steel/aluminium hybrid lightweight bodyshell
- Gravel Mode for activation of settings for enhanced rough road and loose surface
- Heat pump
- Heated rear window with automatic switch off
- ISOFIX child seats mounting system on outer rear seats
- Integrated front headrests
- Integrated side impact protection in doors
- Keyless Start
- LED interior light with switchoff delay, front and rear reading spot light, foot
- Lane keeping assist including traffic sign recognition
- Manual height adjust for driver and front passenger seat belt
- Multi collision brake assist
- Net and straps in luggage compartment
- PTM (Porsche Traction Management)
- Parking pre-climatisation including pre-conditioning of battery
- Performance battery plus with 93.4 kWh capacity
- Porsche Communication Management (PCM) including online navigation module, mobil
- Porsche Stability Management (PSM), vehicle stability system with ABS and extend
- Porsche active aerodynamics (PAA) with active air intake flaps
- Porsche connect with apple carplay
- Porsche intelligent range manager
- Porsche permanent magnet synchronous motors on the front and rear axles
- Porsche recuperation management
- Porsche vehicle tracking system (PVTS Plus)
- Power tailgate
- Range mode for activation efficiency orientated settings
- Rear head restraints
- Rollover detection for activation of curtain airbags and seat belt pretensioners
- Roof spoiler painted in gloss black
- Seatbelt warning system for driver/front passenger and rear seat system
- Silver model designation on tailgate
- Single speed transmission on the front axle, 2-speed transmission on the rear ax
- Sport mode for activation dynamic performance settings including launch control
- Storage compartments in glove comaprtment, front centre console, outer rear seat
- Storage package – Taycan
- Supply cable for domestic electrical socket
- Supply cable for industrial electrical outlet (230V, 32A)
- Tailgate button
- Taycan badge on center console
- Third brake light
- Two integrated cup holders in front and rear
- Tyre pressure monitoring system
- Windscreen wiper system including rain sensor and washer jets
- Wireless phone charging in centre console storage compartment
On the technical-side, company car and salary sacrifice users can note the P11d at £89,380.00 for a standard car. The 83kWh usable battery delivers 0-62 times of 4.1 seconds, 563ps and top speeds of 149mph.
Expect a winter range on the Taycan Cross Turismo of around 210 miles and 285 miles in summer. As standard the car charges at a maximum 11kW AC (this would take 9 hours for 0-100%) and 262kW DC (this would take 19 mins to get from 10-80%).
For the Porsche Taycan Cross Turismo AC Charging guide, please see below:
For the Porsche Taycan Cross Turismo DC Charging guide, please see below: