The Benefits Of Leasing An Electric Car: The Complete Guide For The UK

vauxhall corsa-e electric car

Electric Cars: The Basics

For those of you new to zero-emission electric driving, we recommend a read of the following articles:

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The ownership model of mobility has continued to witness a fundamental shift over the decades, as companies in the automotive sector have innovated and introduced new ways to finance and own a vehicle. The concept of ‘ownership’ has fundamentally changed, with more than 80% of the vehicles on UK roads acquired via a financing mechanism.

In the future, we expect the ‘ownership’ mobility model becoming redundant, as the ‘shared economy’ in the automotive sector becomes more prevalent! Electric car clubs, long-term EV rentals and e-car subscription models will be the primary route to mobility for individuals, households and businesses.

Yes, all the above will offer predominantly electric vehicles, if not only electric cars, as countries like the United Kingdom ban the sale of new petrol and diesel vehicles.

VW ID 3 electric car
The All-Electric Volkswagen ID.3 Available To Lease Via e-zoomed

Before we proceed with ‘why leasing an electric car is a prudent and attractive choice for all consumers’, let us first explore why a plug-in electric vehicle, like a Volvo plug-in electric SUV or a pure electric vehicle, like the VW ID.3, is the better option compared to traditional petrol or diesel cars!

Petrol, Diesel Or An Electric Car? Which Is Best?

Like many of us in the United Kingdom, you would have only ever driven or owned an internal combustion engine (ICE) petrol or diesel car. But given the fast changing automotive and legislative landscape in the UK, many of us are now reconsidering our choice of technology for the next car.

The future in regards to vehicles in the UK became crystal clear in November 2020. The government made clear its intentions to forward the ban on the sale of new petrol and diesel cars and vans from 2040 to 2030. Put another way, from 2030, automotive manufacturers (OEMs) will only be able to sell new zero-emission electric cars.

Many of you may have already been intrigued by electric driving, given the phenomenal increase in electric cars, battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) on UK roads. Award-winning cars like the pure electric Tesla Model 3, the all-electric Nissan Leaf and the Jaguar I-PACE electric SUV have become common sightings across the UK. You can lease these green cars via e-zoomed.

nissan leaf electric car
The All-Electric Nissan Leaf BEV Available To Lease Via e-zoomed

Also fast becoming common is the sight of plug-in cars or electric vans charging on our roads, as EV public and home charging infrastructure continues to grow at a significant pace in the UK. According to ZapMap, as of 29th December 2020, there are EV public charging points in 13,256 locations across the UK. In fact, in more locations than petrol stations!

We expect most individuals, households and businesses seeking to buy a new car, to not only consider buying a plug-in electric vehicle, but to buy one! Though the ban of petrol and diesel cars is nearly a decade away, we expect within 5 years, the predominant technology on UK roads will be battery-electric vehicles (BEVs).

SMMT new car registrations November 2020
SMMT New Car Registration November 2020 (credit: SMMT)

In 2020, the combined market share for BEVs and PHEVs i.e. all types of plug-in green cars has already crossed the 10% market share threshold. This is without doubt a key milestone for the electric vehicle sector in the UK. We expect this to increase significantly within the short to medium term. So bottom-line, we believe buying an electric vehicle as your next new car or van to be a far more prudent choice!

Top 5 Advantages Of An Electric Car

1). No Tailpipe Pollution

Yes, tailpipe emissions from internal combustion engine (ICE) petrol and diesel vehicles have a significant detrimental impact on the quality of our lives.

Dangerous pollutants released from the exhaust of these vehicles reduce the air quality around us, leading to increased health problems. Sadly in some cases the consequences have been fatal.

Battery-electric vehicles (BEVs) or all-electric vehicles do not have tailpipe pollution. In fact, such electric cars do not even have a tailpipe! Zero-emission electric driving has a real and immediate impact on air quality i.e. improving air quality.

As we move ahead with the 21st century, households across the UK and the world will demand better air quality. If there is one learning from the ongoing Covid-19 pandemic, it is, that we have all experienced increased air quality with the reduction in vehicular traffic in our cities, villages and towns. Having ‘tasted’ better air quality, none of us will be inclined to revert to the old ways of congested vehicular traffic, literally choking our neighbourhoods and schools!

2). Lower Running Costs

If there is one thing that is clear from the ongoing pandemic, it is, that household wallets across the nation have become constrained as the UK economy shrinks, as a direct result of the pandemic. Now, more than ever, household are feeling the pinch of filling petrol or diesel, sometime over £100 for a full tank of fuel.

ashvin suri e-zoomed founder
You Can Recharge A Pure Electric Car For £5 (Ashvin Suri, Founder e-zoomed)

With plug-in green cars you can fully charge a battery between £5 and £10. It is an incredible difference in running costs per mile between electric cars and petrol cars. Moreover, with EVs you can charge them overnight at home without having to visit a fuelling station. Now that is convenience!

3). Lower Maintenance Costs

How many times over the past few decades have you suffered an increased monthly expenditure due to unforeseen repair and maintenance costs with petrol and diesel cars? How often have you had to forego the much anticipated family holiday to clear credit card bills related to unexpected car maintenance.

With pure electric cars you are certainly reducing and mitigating this risk, as EVs have far fewer moving parts compared to internal combustion engine (ICE) vehicles. The fewer the moving parts, the lower the probability of repair and maintenance. We expect a significant reduction in repair and maintenance costs for households and businesses, as we migrate to electric driving. e-zoomed offers very competitive electric car breakdown quotes. Simply follow this link!

4). The Plug-In Car Grant (PiCG)

By now, no doubt, most readers would already be convinced that buying an electric car is a far better option that committing to another tailpipe pollution vehicle for the next few years. However, for those few of you, on the fence, this will certainly help you migrate to zero-emission electric driving. The UK government offers you, the buyer, a grant (£2,500) for buying an electric car. The grant is known as the plug-in car grant.

wallbox ev charge point
An Electric Vehicle Charging Point (credit: Wallbox)

Moreover, the government also offers owners of electric vehicles a grant for installing an EV charging point at your home. The grant is up to £350. At e-zoomed we supply and install high quality and high performance residential electric car charging stations.

5). Clean Air Zones

To reduce air pollution in city centres, many councils are contemplating ‘clean air zones’, such that petrol and diesel cars and vans will be banned from city centres. London already operates the ULEZ scheme, which in fact is being extended in 2021.

Though the ongoing pandemic resulted in limited progress with clean air zones being announced and implemented in 2020, we certainly see post the pandemic, in 2021, the announcement and introduction of many Clean Air Zones that will only allow zero-emission pure electric cars within the zone. So best to opt for an electric car to avoid being denied entry into your favourite destination!

Top Reasons To Lease An Electric Car

The world of automotive financing has many options for potential buyers, to include (but not exhaust), bank loans, personal contract purchase (PCP) and lease offers (personal car leasing and business car leasing). In the past decade, leasing has emerged as a favourite financing mechanism for cars and vans, and we expect this to continue for electric vehicles. The reasons for leasing an electric car are many, but below are only some of the top reasons to lease an EV.

1). Flexibility, So That You Can Always The Latest Available Electric Car

Who wants to own a car for 10 years? Most of us prefer upgrading to the latest car models within 2 to 4 years. Buying a car outright reduces your flexibility and convenience to replace an outdated car. While, with leasing a car, once the lease term has been completed, you can simply return the old car and step into the latest car model. It really is as easy as that!

Given the rapid evolution of automotive technology, in particular, electric cars, we can expect newer EV models to include significant improvements in electric driving range and in-car technology. The latest EVs have a host of technology to enhance safety and convenience. For example, the all-electric ID.3 offers a ‘Super Smart’ environment to include intelligent lights, voice assistant and AR Head-up Display. Expect to witness significant more technological advancements.

We can also expect reduction in costs, as large-scale mass adoption of electric cars result in lower production costs. A lease fits these circumstance very well, offering the flexibility of an easy and fast exit from an older and more expensive EV to a new and cheaper green car! We at e-zoomed recommend a lease term of either 36 months or 48 months. To learn about are latest electric car leasing offers simply follow this link!

2). Depreciation Costs

Most car salesman will avoiding alerting you to this basic fundamental fact. All vehicles depreciate i.e. go down in value. As a general rule, new cars depreciate more than older cars!

A vehicle can depreciate as much as 30% in the first three years, and in some cases even more! However, vehicles continue to depreciate over the life time of the asset i.e. the older the car gets, the more the loss in value. By leasing a car, the negative impact of depreciation is reduced to an extent, as the term of a lease is finite. You only pay for the depreciation of the car for the term of the lease. Moreover, the risk of ‘residual values‘ is transferred to the leasing company.

However, other factors also influence the extent of depreciation to include consumer demand, legislation, supply and technological advancement. We expect petrol and diesel vehicles to depreciate significantly as consumer demand for internal combustion engine (ICE) vehicles in the new and used car markets reduce i.e. the lower the consumer demand, the lower the prices, the higher the negative impact of depreciation.

As mentioned earlier, with the rapid pace of innovation in the automotive sector, coupled with the introduction of new legislation, we expect depreciation to become more pronounced this decade than any other till date. So best to lease and not buy a car outright!

3). Fixed Monthly Costs

For most households, budgeting is a vital element of a successful family life. Even pre-Covid, households wallets have been constrained, with limited flexibility to deal with unexpected costs. The economic impact of Covid-19 has further exacerbated the already challenging household finances. With leasing an electric car, there is the advantage of greater certainty in relation to expenses, as monthly lease payments are fixed for the term of the lease!

4). Increase Affordability

How many times have you or the family looked at a new car and sighed ‘I wish’! With leasing a green car, you increase the affordability, by not having to pay upfront for the car. Instead, by paying affordable smaller monthly payments, most households can drive a much larger or more premium (expensive) car via leasing compared to an outright purchase. It is also worth adding that EV leasing companies are competing hard to secure your business, which results in many very attractively priced lease offers!

Of course by leasing a car, you are not ‘locking up’ the family savings in a depreciating asset. Instead the savings can be safeguarded for other household matters!

5). Warranty Period

By leasing a plug-in electric vehicle, in all probability, the lease term matches well with the warranty period. Which means you do not have the risk of additional repair and maintenance expenses, when the warranty period of the vehicle has expired. Repairs post the warranty period can be very high and certainly a significant hit to the household budget! We encourage also opting for the maintenance package when leasing a car. This way you can sleep well at night!

EV accident assistance UK
EV Accident Assistance Available Via e-zoomed

At e-zoomed we offer high quality and competitively priced electric car breakdown cover. We also offer EV accident Assistance!

While e-zoomed uses reasonable efforts to provide accurate and up-to-date information, some of the information provided is gathered from third parties and has not been independently verified by e-zoomed. While the information from the third party sources is believed to be reliable, no warranty, express or implied, is made by e-zoomed regarding the accuracy, adequacy, completeness, legality, reliability or usefulness of any information. This disclaimer applies to both isolated and aggregate uses of this information.

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Ashvin Suri

Ashvin has been involved with the renewables, energy efficiency and infrastructure sectors since 2006. He is passionate about the transition to a low-carbon economy and electric transportation. Ashvin commenced his career in 1994, working with US investment banks in New York. Post his MBA from the London Business School (1996-1998), he continued to work in investment banking at Flemings (London) and JPMorgan (London). His roles included corporate finance advisory, M&A and capital raising. He has been involved across diverse industry sectors, to include engineering, aerospace, oil & gas, airports and automotive across Asia and Europe. In 2010, he co-founded a solar development platform, for large scale ground and roof solar projects to include, the UK, Italy, Germany and France. He has also advised on various renewable energy (wind and solar) utility scale projects working with global institutional investors and independent power producers (IPP’s) in the renewable energy sector. He has also advised in key international markets like India, to include advising large-scale industrial and automotive group in India. Ashvin has also advised Indian Energy, an IPP backed by Guggenheim (a US$ 165 billion fund). He has also advised a US$ 2 billion, Singapore based group. Ashvin has also worked in the real estate and infrastructure sector, to including working with the Matrix Group (a US$ 4 billion property group in the UK) to launch one of the first few institutional real estate funds for the Indian real estate market. The fund was successfully launched with significant institutional support from the UK/ European markets. He has also advised on water infrastructure, to include advising a Swedish clean technology company in the water sector. He has also been involved with a number of early stage ventures.

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