Leasing a battery electric vehicle (BEV) is cheaper than funding a new vehicle on personal contract purchase (PCP), new research suggests.
Leasing.com analysed pricing data for its 15 most popular BEVs and found that leasing was the most cost-effective option on 13 vehicles. Just the Renault Zoe and Jaguar I-Pace were cheaper using PCP.
The highest cost difference was 31% for an Audi E-Tron, with the average difference in cost being 18%.
David Timmis, managing director of Leasing.com, says that one of the most important challenges the industry faces, with the greater shift towards EVs, is making them affordable.
“Without this, the market simply won’t shift quick enough,” he explained. “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.”
The Finance and Leasing Association (FLA) reported that the value of new car personal leasing grew 27% in the 12-months to January 2021.
Toby Poston, director of corporate affairs at the British Vehicle Rental and Leasing Association (BVRLA), 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.”
Leasing.com’s analysis shows that the Tesla Model 3 has a list price of £42,935, however, when leased over four years, the total cost comes in at £25,445.77.
Compare that against a PCP cost of £30,384, and leasing will save drivers 19% over the life of the contract, it says.
The largest saving overall was found when comparing costs for an Audi E-Tron. On PCP, the Audi has a total cost of £43,420.14 at the end of a 48-month contract.
On lease, the same make and model comes in at a total cost of £34,311.50. A total saving of £9,108.64, it says.
Leasing.com compares personal and business car leasing offers from brokers, dealers, motor manufacturers and independent funders.
Battery Electric Vehicle Cost Comparisons: Lease (PCH) vs Finance (PCP)
Identical term and mileage allowances
|
Model |
Total Lease Cost |
Total PCP Cost (excluding balloon) |
£ Difference |
| Tesla Model 3 | £25,445.72 | £30,384 | £4,938.28 |
| Volkswagen ID.3 | £25,445.72 | £22,039.86 | £5,090.58 |
| 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 |
| Kia E-Niro | £18,483.28 | £23,897.40 | £5,414.12 |
| Mini Hatchback EV | £15,534.40 | £18,250.25 | £2,715.85 |
| Nissan Leaf | £10,976.16 | £13,092.01 | £2,115.85 |
| Vauxhall Corsa-e | £13,519.84 | £15,282.20 | £1,762.36 |
| Renault Zoe | £14,630.36 | £14,060 | -£570.36 |
| MG Motor UK ZS EV | £17,768.43 | £23,266.83 | £5,498.40 |
| Volkswagen ID.4 | £18,838.28 | £23,506.74 | £4,668.46 |
| Jaguar I-Pace | £41,037.04 | £38,277 | -£2,760.04 |
| Lexus UX300e | £23,628.56 | £24,039 | £410.44 |
| Audi E-Tron | £34,311.50 | £43,420.14 | £9,108.64 |
Source: Leasing.com
> Interested in comparing electric vehicle data? Check out our EV tool.
> Interested in ensuring the efficient use of EVs. Check out our dedicated editorial sections: Insight & policy | EV news | Charging & infrastructure | Costs & incentives | Benefit-in-kind | EV case studies | EV road tests
More articles on:
The UK's most trusted suppliers, as voted for by fleets.
The Fleet News Reader Recommended programme allows fleet decision-makers to have their say about the companies they trust most to offer the best partnership.
We have gathered opinions via research conducted among the Fleet News audience. Fleet nominated their best suppliers in each industry segment, but also their worst.
The top-performing companies are then granted Reader Recommended status.
Read now
Gareth has more than 20 years’ experience as a journalist having started his career in local newspapers in the 1990s. Prior to joining Fleet News in 2008, he worked in the public sector as a media advisor and is currently news editor at Fleet News.
Login to comment
Comments
No comments have been made yet.