BATTERY electric vehicles are almost 20% cheaper when leasing, compared to a new vehicle on personal contract purchase (PCP), according to analysis by Leasing.com.
The car leasing comparison site analysed its top 15 most popular electric cars, looking at 2022 pricing data for each. Of the 15 models, 13 were cheaper when leased rather than PCP.
Customers could save up to 31% on a new electric car when leasing, with an average saving of 18% across the top models analysed. The maximum savings were found on Audi’s e-tron SUV, with more than £9,000 banked over the course of a contract, though even the average saving still came out at more than £2,300.
At the time of analysis, the UK’s most popular electric car, Tesla’s Model 3, has a list price of £42,935. However, over a four year lease, the Model 3 would cost £25,445.77, compared to a PCP cost of £30,384, representing a saving of 19% for those leasing.
Only the Renault Zoe and Jaguar I-Pace worked out as more expensive to lease, and even the smallest saving to be found worked out at more than £400 on the Lexus UX300e.
Commenting on the analysis, David Times, Leasing.com Managing Director, said: “With the shift towards an EV future, one of the most important challenges the industry faces is making BEVs affordable. Without this, the market simply won’t shift quick enough.
“Thankfully, leasing provides consumers an alternative route to driving an EV that won’t break the bank and, in fact, will save them money compared to PCP – the current most popular new car finance product in the UK.”
Battery Electric Vehicle Cost Comparisons: Lease (PCH) vs Finance (PCP) – Identical term and mileage allowances
|Model||Total Lease Cost||Total PCP Cost (exc. balloon)||£ Difference|
|Tesla Model 3||£25,445.72||£30,384||£4,938.28|
|Hyundai Ioniq Electric||£18,113.68||£22,880.30||£4,766.62|
|Hyundai Ioniq 5 Electric||£22,294.80||£28,689.29||£6,394.49|
|Hyundai Kona Electric||£17,312.16||£19,107.44||£1,795.28|
|Mini Hatchback EV||£15,534.40||£18,250.25||£2,715.85|
|MG Motor UK ZS EV||£17,768.43||£23,266.83||£5,498.40|
Toby Poston, BVRLA Director of Corporate Affairs, said: “Leasing is the perfect way to finance a new BEV. With so much economic uncertainty and technology changing so fast, it is not surprising that more and more people are using this fixed cost, affordable and hassle-free method to fund their leap to electric motoring.”