No-Deposit Electric Car Leasing means more affordable new and used EVs in 2025

More affordable new and used EVs in 2025 - No-Deposit Electric Car Leasing

Moving into an electric car, whether it is a retail or fleet, could be getting cheaper as we progress through 2025. Only in July 2025 the UK government confirmed that a new grant, the Electric Car Grant, is back in action for new EVs.

The transport Secretary, Heidi Alexander, released a confirmation to say some £650 million would be made available to support the transition into zero-emission technology and to help the unprecedented uncertainty which manufacturers in the UK face.

With the ZEV Mandate now dictating the types of vehicles sold in the UK, car makers have to be aware of the vehicles which they are registering in order to avoid any potential fines or misdemeanours. In short, a grant of either £1,500 or £3,750 will be made available to the manufacturer for a vehicle priced at £37,000 or under. The whole basis for offering the grant is to ensure that brands which build or manufacture their batteries or vehicles in the UK are provided with support. This is all about economic support and growth for the industry at large.

The bad news is that there is an eligibility criteria for manufacturers to access the grants with a series of factors to be taken into account. Depending on their sustainability and environmental criteria, the car will receive either £3,750 or £1,500.

The UK Government are keen for manufacturers to hold a verified science based target, which means that a corporate commitment to environmental impact is established. The grant will also look into the level of emissions within the car production stages, as the carbon intensity of the grid is assessed. The news of the grant has not been taken on as a positive move by all the news and media commentators, with some purporting that this is not a priority for the UK.

While the Transport Secretary’s report does discuss the £25 million for delivering cross-pavement charging and another £8 million for NHS EV hubs. However, The Telegraph   are somewhat forthright in that the key to the success of EVs in the UK is not the cost of the car but the “patchy charging infrastructure”.

Whether or not you agree with the political approach, the fact is that EV grants will create an abundance of cost-effective leasing solutions for those manufacturers who qualify for the grants. This may in turn allow more customers to enjoy the no-deposit benefit within the leasing scheme.

When you pursue contract hire, or leasing, the amount you pay in month one is called the initial rental. This can, within reason, allow a customer to increase or decrease this sum to what suits them. As the finance product is not interest-led, the total amount payable in the agreement is usually the same regardless of the initial rental you make.

In hire purchase or PCP arrangements, sometimes the big deposit can reduce the overall amount and therefore customers can be encouraged to pursue this. Because of the nature of leasing, more and more customers are looking to remove the big initial commitments and keep their money in the bank.

This applies to new and used electric car arrangements equally. The used EV deals   are configurable to a 1 spread or 1/S initial rental, so that the personal or business customer pays the same in month 1 as they do in months 2 onwards.

However, this is subject to the credit profile of the individual or business, because this is a finance product which is based on underwriting. Not every consumer or company is eligible and the finance company will review your credit profile, income / expenditure, accounts and other financial indicators as part of their assessment.

It may well be that in some cases if your credit profile is not wholly robust, there may have to be some form of initial financial commitment i.e. a 3 or 6 spread initial rental. However, our EV experts can help you through this process and work with you / the FD or accountants to ensure the viability of the no-deposit lease. For any bigger fleets or salary sacrifice schemes this is generally a must.

Introducing our Smart #1  electric car lease offer

One key brand will be looking to benefit from the new ECG and ensure that its leasing EV line-up is appropriately priced. One of the best-selling EVs of June and July 2025, the Hashtag 1 is proving to be an elite small hatchback and is a great alternative to other options like the Cupra Born, VW ID3, Mercedes EQA and the Volvo EX30.

To make this even more exciting the Smart group, backed by Mercedes, have released a Brabus edition which is a powerful and sporty hot hatch reminiscent of the Audi S3, Cupra Leon and the VW Golf R. Blisteringly quick, technologically advanced and aesthetically pleasing, the Smart Brabus EV is a formidable solution.

In terms of the specification, the model includes wireless phone charging, Halo Roof, powered tailgate, electrically adjustable heated door mirrors, frameless doors, privacy glass, 4-way lumbar support, 6-way powered driver seat adjustment, heated seats, 360 degree camera, navigation, 12.8” central screen, 9.2” HD cluster, courtesy lights

Automatic headlamp levelling, heat pump, air quality, head up display and Beats sound system with 13 speakers, 19” Dynamo, sporty body style, red painted calipers, alcantara sport-style steering wheel, ventilated driver and passenger seats. In a nutshell, this is a fully-loaded car.

But how does the Smart Brabus perform?

As per below this offers:

Browse our Smart Hashtag 1 deals

•  Brabus – the AWD model has a 62 kWh usable lithium battery and will deliver 0 – 62 times of 3.9 seconds, 112mph top speeds and 315 kW (or 422hp). Expect a combined winter range of 170 miles with warmer weather allowing for 235 miles - a combined 205 miles. On charging, the 22 kW AC max will allow 3hour and 30 minute 0 – 100% charging times with the 150 kW DC maximum allowing 27 minute 10 – 80% times. A cargo volume of 323L is available with this car. It has a vehicle fuel equivalent of 131 mpg. This EV will have Bidirectional charging - a 3.7kW AC exterior adapter (V2L). And the car will be able to tow 750kg (Unbraked) and 1600kg (Braked).

In terms of the car shown, the Smart HASHTAG 1 HATCHBACK 315kW Brabus 66kWh 5dr Auto, this is based on the following configuration:

•  Metallic - Cyber silver
•  Microfibre suede – Brabus
•  19" Dynamo alloy wheels
•  Roof - Eclipse black  

Want to know more about leasing the electric Smart #1 in  2025?

Head to our dedicated Smart #1 special offers section, or just get in touch with our expert team on 01942 943 210 or by emailing us at [email protected]