A guide to EV leasing
Electric cars are known for being the more sustainable alternative to petrol cars, not to mention the fact that they're a lot cheaper to run and offer a great driving experience.
So, should you buy or lease an electric car? We explore the benefits of electric car leasing so you can decide if you’re ready to make the switch and go green.
What lease options are there for electric vehicles?
There are many different electric car leasing deals out there, finding the right one for you depends on whether you’re part of a business or an individual looking to lease an electric car for personal use. We look into the most popular options below.
Personal EV leasing
If you're an individual looking to get an electric car, your best bet is to check out our ultimate EV package, which is a personal contract hire (PCH) agreement - but with SO much more included.
With the ultimate EV package you’ll get a fully maintained electric car, with all servicing, replacement tyres, maintenance and repairs, PLUS a free EV home charger installed by an expert Octopus engineer. If you can’t get a home charger because you don’t have off-street parking, we’ll give you 5,000 free miles of public charging with Octopus Electric Universe.
With personal contract hire for EVs, all the costs are included in one monthly amount, which makes running a high quality EV much more affordable than you’d think.
Other types of EV leasing
Another common way to drive electric is through an EV salary sacrifice scheme, to get your employer to join send them this link. It costs nothing for your employer to join, and they can also save on National Insurance Contributions.
You can save up to 40% on the cost of a new EV with salary sacrifice, plus the package includes everything you need to hit the road. A free home EV charger, insurance, servicing, maintenance, breakdown and tyre replacements are all included in one price. Plus that all important free 5,000 miles of charge - at home or on the road.
A third type of leasing is personal contract purchase (PCP). PCP is similar to PCH, but at the end of the contract you have the option to buy the car outright. If you’re curious about the differences between the two, we have just what you need. We explored the PCH vs PCP debate just for you.
The most common type of business EV lease is a business contract hire agreement. This is where you make an initial payment followed by monthly payments for the duration of the contract. At the end of the contract, you hand the car back to us and you can avoid the hassle of reselling.
If your business is looking to offer your employees EVs as part of a benefits package, then you'll want to consider a salary sacrifice scheme. As well as offering a great and useful benefit to your employees, this has great branding benefits and will show customers and potential investors that your business cares about going green.
Is it cheaper to lease an EV?
Yes, most of the time leasing is the most cost-effective choice as it comes without smaller upfront payments compared to buying and many EV leasing contracts include maintenance, servicing and breakdown cover in the monthly fee.
Whether you buy an EV outright or on finance, or lease, each option comes with its own set of pros and cons. One of the main benefits of leasing is that you don't have to worry about a large upfront cost. With traditional car ownership, you have to pay for the entire value of the car all at once and that can be a lot of money. But, with leasing, you only have to pay for a portion of the car's value over time, which can make driving an EV much cheaper.
Leasing with us means you have all your maintenance, servicing and repair costs covered - and you'll have your own home charger installed for free. This type of all-inclusive electric car lease can save a lot of money in the long run, as you won't have to worry about unexpected repair costs. Not to mention the fuel savings that come with switching to electric.
Buying vs leasing an electric car
Usually, leasing is the better option for EVs since you pay a lower monthly payment and a longer warranty than with a purchase. Plus, you'll have the option to hand your car back and upgrade to a new one after a few years. By leasing an electric car, you'll always have the latest model, with the latest tech, without the hassle of selling your car and buying a new one.
If you decide to buy an electric car outright, you'll need to pay the full price upfront. And while you may be able to sell your car later, it's unlikely that you'll get as much money back. You'll also be fully accountable for repairs, and maintenance costs — as well as having to arrange and pay for a home charger to be installed.
What’s included in the package when leasing an electric vehicle?
Depending on the package you choose, leasing an electric vehicle can include a lot of benefits and cost savings. With our ultimate EV package we include the car (choose between over 65 top models), a free home EV charger with installation, servicing, maintenance, breakdown cover and replacement tyres.
If you’re able to get a home charger because you have off-street parking (you lucky thing!) and you switch to Intelligent Octopus, we’ll throw in 5,000 miles of charge at home. If you can't get a home charger, we'll give you 5,000 miles of free charge with Octopus Electric Universe.
To check out our electric car lease options, take a look at the great range of EVs we have available.