Can I lease an electric vehicle?

Elisha Keep | 11/05/2022

Want to be the talk of the town with your eco-friendly ride? We’re here to tell you everything you need to know about leasing your EV. 

At a Glance

When you’re making any kind of decision on your next vehicle, it’s essential to do your research.

Find out whether leasing an electric vehicle could be right for you.

Leasing a vehicle has been a popular option for many drivers since the early 90’s. This option allows drivers who don’t want to spend tens, possibly hundreds of thousands of pounds to drive brand new cars. In the early days of electric vehicles, high price points were a sticking point for many prospective drivers. 

As the popularity of EVs grows, leasing options have become more readily available. 

Want to be the talk of the town with your eco-friendly ride? We’re here to tell you everything you need to know about leasing your EV. 

What does it mean to lease a car?

First of all, it’s important to distinguish between leasing (or renting) an EV and buying an EV on finance.

Leasing 

PCH (personal contract hire)

Leasing your EV means you’ll be renting the vehicle over a long period. At the end of the lease, you’ll give the EV back and likely take out a new lease (unless you’re ready to make a purchase). 

You won’t own your EV at the end of a lease.

Finance 

PCP (personal contract purchase)

When you take out a finance agreement on an EV, it’s with a view to own the car at the end of your payment terms

There are a lot of terms and conditions you need to be aware of before entering into a finance agreement. 

You can find further guidance here.

When you’re making any kind of decision on your next vehicle, it’s essential to do your research. You want to make sure you’ve chosen the right car and arrangement for you. 

Pros and cons of leasing a car 

What works for one driver won’t necessarily work for the next. For some, leasing is an ideal situation and solution to high purchase prices. Others want to know they’ll have the vehicle to show for it at the end of their term. 

Pros

Regularly updating your EV 

If you like to change cars every few years, leasing may be the better option for you. A lease term will usually last anywhere between two and four years. If you know you’re someone who likes to move on to the next thing, this arrangement may suit you down to a tee. 

If you’re keen to get the latest and greatest EV technology when it becomes available, leasing sounds like your best bet.

No high purchase prices 

We all know buying any car outright is a big financial commitment - EV or not! And not everyone who needs a car wants to pay the high purchase prices. 

Whether you decide on a PCH or PCP, you’ll usually need to provide a deposit at the start of your term. However, this is a marginal cost compared to buying an EV in full. 

No worries about depreciation 

When you buy a car outright, it starts to decrease in value as soon as you drive it out of the showroom. It’s just the nature of the beast. 

If you’re someone who likes changing your car regularly, this can seriously impact your bank account. 

You don’t have to worry as much about depreciation when you lease an EV. High spec EVs often maintain their value better than their more mainstream contenders. This often means dealerships can offer EVs at lower monthly rates because they’ll still be of a certain value when they return. 

Minimal maintenance costs 

Leasing your new EV means you’re often covered under the manufacturer’s warranty. Crucially, this means you usually won’t have to worry about any unexpected mechanical or technical repair bills if something goes wrong. 

No more worrying about replacing those tyres when you’ve been out and about enjoying your EV.

Cons 

You won’t ever own the car 

Similarly to renting a house, you’re only renting your EV. You won’t own it at the end of your term. 

You never own your car. It belongs to the lease company. 

Damage is your responsibility 

While mechanical or technical faults will usually be covered by your manufacturer’s warranty, any cosmetic damage caused during your lease is your responsibility to get fixed. Your lease company will expect your EV to be returned in good condition.

You may be charged for exceeding your mileage 

When you negotiate your lease terms, you’ll be asked to declare how many miles you expect to do annually. This amount will go towards calculating your monthly payments. 

If you exceed this mileage by a substantial amount, you may be required to pay an additional fee at the end of the lease. No one likes a nasty surprise!

You may not be eligible for leasing 

As with renting or any kind of loan, you’ll be subject to a thorough credit and affordability check before being approved to lease your EV. 

Make sure you’re confident you have your ducks in a row before you take the plunge as there’s no guarantee you’ll be accepted for an agreement if your finances aren’t ship shape and shiny. 

How Egg is supporting your switch 

Hassle-free home charging 

Oh hey! You made it. You’ve decided to lease an EV. Now what? 

At Egg, we’re here to support your switch to cleaner energy. You need the best of at-home charging to get the best out of your EV on the road. It couldn’t be simpler getting your home-charging set up with Egg. We’ll ask you a few quick questions and have our engineers out to you in a jiffy. 

Bish bash bosh. You’re ready to go. 

Once you’ve decided on your EV, we’ll be here with your hassle-free home charging. Everything you need to charge your EV at home for just £27.50 a month with our Egg EV Charger Plan.

Select Car Leasing 

We’re also very proud to have partnered with Select Car Leasing - one of the country’s leading vehicle brokers. 

You’ll find a wide range of EVs available to lease. Get the very best from your EV, with none of the stress.  

We’re thrilled that leasing makes the EV market more accessible to those who want to make a difference. Ready to get your home EV charger ready? Contact our expert Egg team now.

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© 2022 Egg - All Rights Reserved; A Liberty Global plc company

Registered address: Griffin House, 161 Hammersmith Road, Hammersmith, W6 8BS

Company number: 07477370; VAT number: GB109695779

In relation to consumer credit, Phoenix Renewables Ltd, trading as Egg and The Phoenix Works, is authorised and regulated by the Financial Conduct Authority (Reference 965996)

© 2022 Egg - All Rights Reserved; A Liberty Global plc company. Registered address: Griffin House, 161 Hammersmith Road, Hammersmith, W6 8BS. Company number: 07477370; VAT number: GB109695779. In relation to consumer credit, Phoenix Renewables Ltd, trading as Egg and The Phoenix Works, is authorised and regulated by the Financial Conduct Authority (Reference 965996)