The best electric cars for business leasing
Leasing an electric car through your business is the perfect choice for a forward-thinking, eco-conscious company. And, with lower running costs compared to a petrol car and great business tax benefits, it’s the smart choice, too.
Ready to make the switch but not quite sure where to start? Check out our guide to the best electric cars for business and we’ll help find the right car and payment plan for you.
Are electric car leasing good for business?
Yes, electric cars are great for business. Why, you ask? Let’s break it down:
1. You can save a lot of money switching to EVs
When you hire an electric car through your business you can claim up to 50% of the VAT back for your monthly lease payments and 100% of the VAT for maintenance costs. You’ll also pay only 2% on benefit in kind (BiK, or company car tax), compared to as much as 40% for a petrol or diesel powered car.
Here’s an example: a petrol car on a 36 month leasing contract worth £30,000 will attract a BiK charge of anywhere between £1,680 - £3,360 per year, while an EV of double the value of £60,000 will only pay £240 - £480 in BiK per year. Find more info on how to calculate Benefit in Kind on the HMRC website.
The Benefit in Kind (BiK) rate is set by the government. It’s worth noting this is currently fixed until April 2025 at 2%, and will rise by 1% every year until 2028. An increase in BiK would increase the amount you pay for your car.
2. EVs have lower maintenance and running costs
The cost of running your EV is much less than a petrol or diesel car. It’ll cost you much less to recharge your car battery too, especially with super low-cost overnight home charging.
You’ll also pay very low or no road tax until 2025, and you’ll pay no charges for Clean Air or Low Emissions Zones either. That’s a lot of cost savings!
3. There is no risk to residual value when leasing
As you’ll give the car back at the end of your lease, you don’t have to worry about better models coming on the market and affecting the residual value of your car. You’ll also have the opportunity to trade up to a higher-tech model if you want to at the end of your lease.
4. It’s more environmentally friendly to drive EVs
Electric cars don’t emit any exhaust gases, so reduced harmful air pollution is a big plus here. They can also run on electricity from renewable sources, are more energy efficient, and reduce noise pollution. So an electric car for business is cleaner for the environment and for your company’s conscience.
5. EVs are great for your brand image
As a business, you want to impress your clients and your employees. Driving an electric car shows your team and your clients that you’re a company that’s serious about net zero, committed to sustainability and a modern, forward-thinking brand.
Can I change my fleet to electric?
Yes, you can! Changing your fleet of business cars to an electric fleet is a great way to reap even greater financial and environmental rewards across all your company cars.
If you have 20 cars or more in your fleet, then a flexible fleet agreement is the best way to take advantage of tax incentives and achieve flexibility for you and your team.
If you have a smaller fleet, then business contract hire is the best way to switch a smaller group of company cars to electric, while still getting all the benefits.
Which electric cars are the best for business leasing?
When thinking about which company car to get, it's important to think about what you’ll use the car for and how you want your company brand to be seen by clients and customers.
Our experts are here to guide you at every step of the way! Here are our top picks for the best EVs for business lease:
1. Nissan LEAF
The Nissan LEAF was the first mass-produced electric car and it's clear why. This second-generation model provides an upgrade to the interiors while keeping the LEAF’s simple and practical design. It’s a compact but roomy car, and its 200-mile range means it's great for nipping around the city and longer motorway rides too. It also boasts impressive boot storage, so it’s perfect for those overnight stays or trips to the airport.
Maybe you prefer a classic car that can zip around the city and effortlessly get you from A to B. With updated interiors and a decent 115-mile range, it’s a modern and stylish company car with an electric twist.
3. Kia Niro EV
The Kia Niro EV is a great all-rounder, great for everyday life and business. The SUV boasts an impressive extended range of 235 miles. For any company, it’s a quality, comfortable and great value option.
A name synonymous with electric cars, the award-winning Tesla Model 3 has a lot to offer as a great business car option. Its impressive tech, safety features and fantastic 285-mile range make it a safe, modern and super sleek option. With various ranges and performance models available you can also customise the car to meet your specific business needs.
5. Polestar 2
Set to rival the Tesla, the Polestar 2 is a quality electric car from the Volvo family. It goes a speedy 0-62mph in 4.7 seconds and offers an impressive 245-mile range. It’s a safe, stylish and comfortable choice for short and long-distance drives alike.
6. Mercedes Benz EQS
For a seriously sleek and premium quality driving experience the Mercedes Benz EQS has it all. With top-of-the-range tech and an impressive 395-mile range, it’s perfect for luxurious long-distance business travel.
For more inspiration, browse all our electric vehicles. With our full package, all our business car leases come with a free charger, servicing, and breakdown cover to keep you on the road. To get your hands on an electric car even quicker, take a look at our electric vehicles available with speedier delivery.
