A guide to leasing - is it really the best way to get an EV?

For many drivers, this is the moment where things get confusing. You’ve heard leasing is cheaper, simpler and more flexible but, you’ve also heard that you “don’t own anything” at the end.

So, which is actually better?

The short answer: It depends on how you want to use your car.

Leasing isn’t about ownership - it is about paying for the time that you drive your car. And for many people, that aligns better with how they actually use a vehicle.

But it’s not right for everyone.

This guide will help you decide by:

• Explaining how leasing works, simply
• Showing where it works well and where it doesn’t
• Helping you work out if it fits your situation

Leasing means you pay a fixed monthly cost to drive a car for a set period of time, typically two to four years, without owning it.

At the end of the agreement, you simply hand the car back, or choose a new one. That’s it.

Think of it like this:

Buying = paying to own the car long term

Leasing = paying to use the car for a defined period

Leasing has become one of the most popular ways to get into an EV. Not just because of the cost, but because it removes a few key uncertainties.

• You avoid a large upfront payment
• Your monthly costs are predictable
• You don’t need to worry about resale value
• You can upgrade every few years as EV technology improves

For a lot of drivers, that simplicity is the main appeal!

This is the biggest hesitation people have - and it is a fair one.

If your goal is to keep the car for many years, ownership can work out cheaper over time.

But in reality, many drivers change cars every few years anyway and leasing aligns your costs with that behaviour.

Instead of paying for long-term ownership, you’re paying for the period you actually use the car.

Rather than asking which is “better”, it is more useful to ask “what do you want from your car?”

• Want lower upfront costs
• Prefer predictable monthly payments
• Like driving newer cars with the latest tech
• Don’t want to deal with selling a car later

• Want to keep your car long-term
• Prefer to own an asset outright
• Are comfortable with depreciation and resale

If you’re a non-business driver, this could be via personal leasing or a salary sacrifice scheme, if your workplace runs one. 

Different providers offer different deals (think free chargers, charging discounts, and more), so shop around! 

Choose your lease term and annual mileage. Then, get a quote, accept it, and send your leasing provider the documents they ask for. 

Take delivery of your EV, drive it, then hand it back when your lease is done!

There are various options for you here, depending on the type of lease agreement:

• You return the car to the leasing company (PCH, BCH, salary sacrifice)
• You renew your lease for another set time period (PCH, BCH, salary sacrifice)
• You purchase the car outright, either through paying off the remaining value of the car (PCP) or through the total of the payments you have already made (HP)

Most drivers choose a mileage allowance that comfortably covers their needs, but if you do go over, the cost per extra mile is agreed upfront. Some leases will allow you to increase your mileage limit during your contract if you find that it’s not enough. 

After your lease expires and you hand the car back, your leasing company will check the mileage. If you have exceeded your agreed mileage, you may have to pay a charge.

EVs typically require less servicing than petrol or diesel cars because they have fewer moving parts.

Some leasing companies include maintenance in the lease. Exactly what this covers varies between providers – but they might include:

• Regular servicing and MOTs
• Damage repairs and replacement tyres
• Breakdown cover

Ending a lease early usually involves a settlement fee, which is why most drivers choose a term that suits their circumstances. 

Want to drive the latest, snazziest EV models? Choose a 2-year lease to switch things up and experience the latest tech. 

Looking for lower monthly payments? Opt for a 4-year lease to keep costs down.

Again, this depends on your agreement. In the majority of cases, personal leasing companies won’t cover insurance.

For salary sacrifice and other business leasing agreements, insurance is more likely to be included. In both cases, you’re responsible for providing up-to-date information for your insurers so they can give you an accurate quote.

Absolutely! In fact, at Octopus EV we only lease EVs. 

Our personal, salary sacrifice, and business packages are all designed specifically for electric drivers, with maintenance, support, and home and public charging deals included. 

Discover the joys of electric driving with our three dedicated leasing schemes:

• Personal leasing (Intelligent EV)
• Salary sacrifice
• Business contract hire