Your Definitive Guide to Maintenance on an Electric Car

Maintenance on an Electric Car - Your Definitive Guide

The growth in popularity of electric cars, and vans, has brought with it new quandaries, queries and concerns. And one of the biggest discussion points for any personal, business or salary sacrifice EV customer has been the maintenance element.In particular, you will have noted that running costs, or whole of life costs, is something which is consistently mentioned as a key attribute, or saving, with all-electric automotives.

But with contract hire, which is our primary financial product, there are two key positions which need to be discussed, as this is all about choosing a financial product, and vehicle, which is suitable for your needs and requirements.

As the financial services industry moves toward Consumer Duty, the standards and ethics we employ must be to the highest levels possible to ensure positive outcomes for our customers and which meet their short, medium and long-term requirements.

So do you have to take out maintenance with an electric car lease?

In short, no you don’t. When you visit a leasing broker website you will note that additional queries are raised on the notion of maintenance in that you will either select “YES” to receive an additional quotation or a physical amount will be shown to set out what the monthly payment will be with the funder-maintenance included (we don’t say servicing contracts in the leasing industry!).

In a case where a customer elects to maintain the EV themselves, which is fine, then they are undertaking the cost and responsibilities for maintenance, servicing and tyres. While an EV has significantly less moving parts, this doesn’t mean that the car will not require regular services. With each manufacturer and model this is set either as a time or as a mileage.

For example, your EV will say to service every “x” years or “x” thousand miles (whichever lands sooner). And to help a customer, the car will often tell you in the form of a countdown as to when you need to arrange this. Under the terms of a contract hire agreement you MUST service the EV in accordance with the manufacturer’s recommendations, as part of preserving the warranty and ensuring the EV is in good working order.

Should I (or the business) utilise funder-maintenance?

A warranty is not about regular vehicle checks; this is about helping a driver where their vehicle does not work, or has issues, through no fault of their own. EVs, like combustion vehicles, do break and this is where a franchised dealership will assist in helping you to organise it to be corrected. Without something called a “relief vehicle” do be aware that a courtesy car may not be provided when your EV breaks and is in with the local dealership.

Does an EV on lease need to go to a franchised dealership?

If you elect to service the lease car yourself, then you have two options - 1) use the local franchised dealership; or 2) use a VAT-registered servicing agent who utilises genuine parts. In some cases, please note that the finance company will dictate that you use the franchised dealer as part of the arrangement, so do check with the finance company / leasing broker first.

Where you wish to get the car serviced is ultimately your decision, or that of the company, and should probably be based on practicality and cost. While using a servicing agent is often cheaper, the use of a local dealership does benefit in situations where you have issues with the car. The history with that dealership will greatly aid when you need assistance but, as we have already identified, this is not always a contractual obligation.

As part of the service, your EV should receive a comprehensive overview of the brakes, suspension and battery (including any software upgrades.) Separate to this are the tyres, which do need to be replaced in cases of wear/tear or punctures which cannot be repaired.

Not unlike the service obligations, you must ensure that like for like tyres are used on the EV; you cannot utilise part-worn, budget or non-EV suitable tyres. Based on your annual mileage and driving style/ behaviour, you need to consider the cost per tyre as part of your affordability assessment. While breakdown cover is included with most new cars, do check the terms of the warranty, as this can vary between 1 - 3 years depending on their approach. If your EV breaks down outside of the cover period, you are responsible for recovering the vehicle and taking it to a local dealership to be corrected. This will be an expensive exercise!

So does a maintenance contact include everything on a lease?

Clarity is of the utmost importance with our leasing deals and it would be untrue to say this includes everything. With a funder-maintenance arrangement, the cost of all servicing, maintenance, tyres and breakdown cover will be included for the term.

What happens is that our amazing admin and logistics team send you a card to leave in the car with a phone number and this can be used to organise a service, replacements tyres or breakdown recovery. The dedicated maintenance team at the finance company will talk you through the process and make sure that you have everything covered.

So long as there is no driver error or damage, the costs of any work will be organised between the servicing agent / dealership and the finance company. This means complete cost assurance to the end user. And with any tyre puncture or replacements, the same level of service applies so that a mobile fitting service will replace the tyres or an appointment will be made at a local tyre fitting company. For cases of breakdown, the finance company will have a relationship with the AA or RAC, and they will repatriate your EV to the dealership or your home.

But maintenance does not include motor insurance, and this is something the customer (personal or business) will have to arrange separately. While our business or salary sacrifice customers can be introduced to our Churchill Insurance partners - but for PCH electric car customers you do need to organise this yourself. Before committing to a lease deal, get some insurance quotations to ensure this is an affordable proposition.

Whether or not you elect to use the funder-maintenance arrangement on the new EV, just ensure that you completely understand the pros and cons, taking into account your appetite to risk and budgets. With contract hire being a long-term usership arrangement, this is not something you can simply hand back or change; you must fulfil the contract or pay fees under an Early Termination process.

Moving on to one of the best cars of 2023, the MG4, one of our fleet customers was lucky enough to receive one of the first options to land in the UK. Now the MG4 has been winning award after award, with recent wins like the UK Car of the Year  and success at the Fleet News Awards. With a price point of £26,000 - £32,500, this is truly is one of the best affordable EVs to lease or buy in 2023.

In terms of the car shown, the  MG4 Hatchback 150kW SE EV Long Range 64kWh 5dr Auto (Pure Electric Vehicle)  this is based on the following configuration:

•  Camden Grey  Metallic paint
• Fabric - Black
•  17" alloy wheels with low wind resistance aero cover
•  Both Mode 3 / Type 2 Charging Cable (Public Charging & home wallbox charger – Fast charging) & Mode 2 / 10amp 240v Charging Cable (Domestic 3 pin plug - Slow charging)  

But how does the electric MG4 hatch perform? Is it fast? What is the range? 

With the longer range option starting from around £28,500 this option will have a usable 61.7 kWh lithium-ion battery which will offer 0 – 62 times of 7.9 seconds, 99 mph top speeds and 150 kW (or 201hp). And the drivetrain will be FWD. Expect a combined winter range of 190 miles with warmer weather allowing for 260  miles on a full charge.

On charging, the 11 kW AC max will allow 6 hour and 45 min 0 – 100% charging times with the 135 kW DC maximum allowing 34 minute 10 – 80% times. This pro-family car has a reasonable cargo volume of 363L and a vehicle fuel equivalent of 148 mpg. Ad the MG4 can tow, with a 500 kg Braked and Unbraked capability