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Is it worth leasing an electric car?

The Finance & Leasing Association's 2022 report shows that around 90% of new cars are purchased on finance. There are a few reasons why leasing and financing vehicles is popular:

  • You don't have to worry about depreciation

  • Fixed, affordable monthly payments

  • Option to buy newer cars

  • Able to buy your car at the end on some contracts, or switch to a new car

Electric vehicles are currently more expensive to buy from new than a traditional ICE vehicle, there's no denying that. For example, a brand new petrol Vauxhall Corsa starts at £18,615 whereas an electric Vauxhall Corsa-e starts at £31,131.

As we get closer to the 2030 ban on new petrol and diesel vehicles, leasing an electric car may be the most accessible way for most people to get an EV.

The Vauxhall Corsa-e starts at £424 per month when you lease directly with Vauxhall, but you can also get the Nissan Quashqai, Smart ForTwo Coupe, Nissan Leaf, and MG Motor MG4 for under £300 per month from Select Car Leasing.

There is also a great range of business EV car and van leasing deals available.

Leasing an electric vehicle means you don't have to worry about upfront payments as well as depreciation that inevitably comes with buying a new car.

As soon as your new motor leaves the dealership, it loses value. According to Elmo Drive, electric vehicles typically depreciation slower than traditional ICE vehicles. ICE cars and vans lose almost 50% of their value within 3 years, whereas with EVs this figure can be as low as 40% (or 11% with the Tesla Model 3!).

When you lease a vehicle, you will be asked to estimate your annual mileage and a charge will be applied for every mile you do over this agreed limit. This helps the seller estimate the depreciation and value of the vehicle after your leasing agreement ends.

So, not buying a car means you don't have to worry about depreciation!

Electric vehicles are undoubtedly the future for motoring, and many businesses around the UK are making the switch to EVs for their fleets to save money and meet their sustainability goals. Charge And Recharge offer commercial charge points installations around the UK, working with customers such as Naturex and Forterra.

To get your business a free, no obligation consultation call 01827 211600 or email today!


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