Is leasing an electric car a good idea?

At Go Ultra Low, we think leasing can be a great way to sample what it’s like to live with an electric car. But don’t just take our word for it, our partners Nationwide Vehicle Contracts have written a blog on the benefits of leasing…

If 2020 has taught us anything, it’s that we live in an uncertain world. So, it’s understandable that many drivers still feel reluctant about making the transition from a traditional petrol or diesel car to an electric vehicle (EV)– after all, what if it’s not right for you?

But, with the Government consulting on ending the sale of new petrol, diesel, and hybrid cars and vans from 2035 or earlier, we are confident that the future will become electric.

At Nationwide Vehicle Contracts, the UK’s leading provider of car and van leasing, we believe that leasing is a great way to make the transition to electric. It’s a great option for drivers to ‘try’ out an EV rather than committing to a big outlay when purchasing.

With leasing, you don’t have many of the worries of ownership, such as long-term maintenance concerns or depreciation costs, but you can still benefit from the advantages of going green, such as lower running costs, tax benefits, and government grants.

Vehicle leasing has seen huge growth over the past few years driven by the personal contract hire (PCH) and leasing sector. British Vehicle Rental and Leasing Association (BVRLA) figures show that the PCH sector has grown by 36% year-on-year and 7% quarter-on-quarter. This trend is evident in Nationwide Vehicle Contracts, with our best year-to-date for EV sales.

We’ve seen significant growth in EV sales over the past 12 months, growing by 79% in comparison to the previous year. This is helped by several major manufacturers launching new models into the UK market and finance providers getting behind the products. David Johnson (Director at NVC) believes this growth is not only because of the long-term financial benefits of driving an EV but also encouragement from the Government to go green. The Government continues to invest in charging infrastructure and as such there are now more than 34,500 public chargepoint connectors in the UK at over 12,500 different locations, including over 7000 rapid changepoint connectors.

But what makes leasing so appealing?

One advantage of leasing an EV versus buying is that you never own the vehicle. Not only does this mean you don’t need to worry about the car declining in value or having to sell it, but you’re likely to hand the vehicle back before you experience any long-term maintenance issues.

Another appealing aspect of leasing is that contract lengths tend to be short. Most of our customers opt for a two- or three-year deal, which allows them to upgrade to a new vehicle sooner and ‘try out’ the vehicle without committing for the long-term.

We are also keen to point out that customers who go electric can take advantage of the many Government incentives.

The UK Government is offering a plug-in car grant with a discount of up to £3,000 for fully electric cars costing up to £50,000 as well as grants to help towards the cost of installing a chargepoint at home, at work, and on-street. Company car drivers can also benefit from extremely low Benefit In Kind (BIK) tax rates, representing huge savings for the driver.

Our partnership with Go Ultra Low is very important. They have been a great support in helping us educate our customers on EVs. In the long run, we hope this partnership will help us encourage our customers to try leasing their first EV with us.