buying

Electric car leasing explained – EV financing vs buying

25th May 2021

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Leasing an electric car - the costs

Introduction

More than 90 percent of new cars are bought on finance, according to the latest Finance & Leasing Association statistics.

Why such a big share? The benefits of leasing include fixed monthly repayments, no concerns about depreciation and the flexibility to switch to a new car at the end of the contract.

Within this market, electric car leasing is growing in popularity, with many buyers using it as a way to see if they can live with an EV on a daily basis.

This is an important consideration as we head towards the 2030 ban on the sale of new petrol and diesel cars.

For reasons we’ll outline here, leasing an electric car can be much more appealing than other finance options or buying outright. Electric cars can be expensive to buy, but most vehicles should be well within reach on EV finance.

Take the MG ZS Hatchback as an example.

Car Leasing Buying

MG MOTOR UK ZS HATCHBACK (petrol) £248.28 per month £18,000

MG MOTOR UK ZS ELECTRIC HATCHBACK (electric) £251.99 per month From £26,000 with plug-in grant

Comparison on MG MOTOR UK ZS HATCHBACK 1.0T GDi Excite 5dr DCT (source) vs MG MOTOR UK ZS ELECTRIC HATCHBACK 105kW Exclusive EV 45kWh 5dr Auto (source)

The electric MG ZS Electric looks expensive on paper, with a starting price of around £26,000. That’s £10,000 more than the entry-level petrol equivalent MG MOTOR UK ZS HATCHBACK 1.0T GDi Excite 5dr DCT with a 1-litre petrol engine.

Leasing closes the gap between the two cars, however, with Nationwide Vehicle Contracts quoting a price of around £200 a month for the Corsa SE petrol and £250 for the electric Corsa-e.

This is based on a three-year contract, an initial rental of six months and 10,000 miles a year.

Read on to discover why leasing rather than buying an electric car might be a better fit for you.

Electric car financing

Spreading the large cost of a new car makes perfect sense, but you have to decide which finance deal to choose.

We’re focusing on three options: personal contract purchase (PCP), hire purchase (HP) and leasing. You’ll often see leasing referred to as personal contract hire (PCH), which is the consumer version of a business lease.

PCP - personal contract purchase

The basic premise of a PCP deal is that you only pay for the car’s predicted depreciation over the length of the contract.

That’s the difference between the list price and the car’s expected value at the end of the agreement, typically up to four years.

Most new cars lose around 40 percent of their value over the first three years. Say a new car costs £20,000 and is expected to be worth £12,000 after 36 months.

The £8,000 difference is due in the form of a small deposit and fixed monthly repayments. At the end of the contract, you can pay the remaining £12,000 or simply hand the car back.

HP - hire purchase

Before the boom in popularity of PCP deals, hire purchase (HP) was the most common form of new car finance.

An HP agreement simply involves spreading the cost of a new car over a fixed period, typically 12 months to five years. At the end of the contract, the car is yours, with nothing more to pay.

However, if you are considering an EV then HP might not be the best option for you. The rate of development in the field of battery technology is such that you could find that your EV is slightly outdated and outmoded by the end of the contract.

This will make it more difficult to upgrade to a new electric car, as your trade-in value will be reduced.

Leasing

Leasing is currently the most popular option for financing an electric car - and for good reason.

It’s likely to be the most affordable form of EV finance, not least because you’re essentially renting the car from the leasing company.

At the time of writing, it was possible to lease an electric car for less than £200 a month, with even the Nissan Leaf and Renault Zoe, two of the UK’s most popular EVs, available for around this price.

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The pros and cons of leasing an electric car

electric-car-leasing-vs-buying

Pros

Rate of EV development

The rate of development in the electric car industry is extraordinarily high. Consider the likely range of a typical electric car, which has increased from around 100 miles a decade ago to 200-250 miles in 2021, with 300 miles likely from some models.

Bigger choice of models

There’s also a greater choice of EVs, including small cars designed for inner-city commuting, SUVs that are perfect for family life and sports cars with the performance to rival a supercar.

Even more EVs will hit the market over the next couple of years, so a short-term lease gives you the flexibility to upgrade, rather than committing to what could become an outdated model.

Depreciation costs

As previously mentioned, EV technology is rapidly evolving, with battery capacity and range increasing across new models.

It's a bit like having the latest mobile phone, whereby the next generation is always just around the corner.

That's why the calculated depreciation on EVs can be so much higher than they might be on a petrol or diesel vehicle, and why you might want to upgrade your EV when new models with better battery range become available.

If you buy your EV outright, there is a high risk of the value reducing within a year or 2 of it's life.

That’s why leasing offers a more cost-effective way of driving a brand new EV, as the depreciation risk is with the leasing provider and not you.

With shorter term leasing contracts, you can upgrade your EV every 2-3 years, meaning you get all the benefits of driving the latest models, without taking on the risk of vehicle depreciation.

Battery condition

Battery degradation is a common concern. A 2020 report found that, on average, you can expect an EV with a range of 188 miles to drop to 173 miles after six years.

Say you travel 188 miles a week, that’s a loss of 780 miles a year. Another thing you don’t have to worry about when leasing an EV.

Driving technology advancement

Then there’s the rate at which technology is improving, not just in terms of battery capacity, but in the car’s smartphone connectivity, safety features and entertainment.

Although you can already charge an EV with a typical 60kWh battery in around 8 hours using a 7kWh home charger, faster charging times, longer range estimates and enhanced user experiences are all likely within the next few years, making leasing an EV preferable to committing to a lengthy PCP or HP deal.

Service and maintenance included

With leasing, some providers give you the option to add on a service and maintenance package, which is spread across the length of the contract.

Maintenance packages can include all scheduled maintenance such as MOT, servicing and tyre replacement. Breakdown and roadside assistance can also be included.

The good news is, with fewer moving parts and no oil to top up, maintaining an EV is much simpler than a traditional petrol or diesel car, and you should make big savings.

You should also find that breakdown cover is included as part of the manufacturer’s warranty.

Cons

Mileage penalties

At the beginning of your contract you can agree to the set amount of miles you travel per year which will reflect in your monthly rental payment, however there are penalties at the end of your contract for going over the agreed mileage limit.

You’ll be charged a price in pence for every mile over the mileage cap, so make sure you work this out as accurately as you can, or set a higher limit from the outset to ensure you are covered against extra charges.

Damage excess charges

Although you don’t own the car, you are expected to look after the lease car as if you do.

If you don’t add on a maintenance package, it will be your responsibility to ensure the vehicle is fully maintained on an annual basis, as well as repair any damage caused during the life of the contract that is considered beyond reasonable wear and tear.

Any damage or failure to service the vehicle will result in end of contract charges, which can vary in cost depending on the type of damage.

Battery rental

In rare cases, the leasing fee doesn’t include the battery rental. You’ll find this on older versions of the Renault Zoe, so check with the finance company before signing the lease agreement.

Leasing an electric car - the costs

The difference between leasing a petrol or electric version of the MG MOTOR UK ZS HATCHBACK can be very little, but what about a more expensive EV?

Using the same search criteria (personal lease, three years, initial rental six months, 10,000 miles per annum), for a larger SUV such as the Kia e-Niro could cost between £325 and £450 a month. A standard Kia Niro is likely to cost between £275 and £350 a month.

Yes, the EV is more expensive, but you’ll benefit from lower running costs, significant tax advantages and not to mention the environmental impact of running a zero emissions vehicle.

For company car drivers, the benefit-in-kind (BIK) tax rate for electric vehicles is just 1%. For some context, with CO2 emissions of 110g/km, even the basic Kia Picanto attracts a BIK rate of 27%. That means a high-end electric car will cost less in company car tax than a tiny city petrol car.

Other cost advantages include exemption from the London Congestion Charge and Ultra Low Emission Zone (ULEZ) fee, along with free parking (and charging) in selected London boroughs and other UK towns and cities.

Supermarkets are also supporting the take-up on electric cars, with free EV charging pays popping up across their larger superstores, so you charge whilst you shop!

RAC electric car leasing offers^

You can now lease an electric car with the RAC in partnership with Hitachi Capital Vehicle Solutions.

You can choose both the length of your leasing agreement and how much the initial rental payment is – usually the equivalent of one, three, six or 12 months’ rental payments.

The prices below are based on a three-year agreement – 10,000 miles per year – with an initial payment of six months’ rental followed by 35 monthly payments.

Car make and model Rental

Nissan Leaf Hatchback 110kw N-Connecta 40kWh 5dr Auto £227.99

Vauxhall Corsa-e 100kW SRi Nav Premium 50kWh 5dr Auto (7.4kwch) £227.99

Hyundai Kona Electric Hatchback 100Kw Premium 39kWh 5dr Auto £299.99

Hyundai Kona Electric Hatchback 150kW Premium 64kWh 5dr Auto £311.99

Peugeot e-2008 Electric Estate 100kw GT Premium 50kwh 5dr Auto £347.99

Mercedes EQA AMG Line £558.00

Mercedes-Benz EQC AMG Line £647.99

Mercedes EQC AMG Line Premium £707.99

Check out our full range of extremely competitive electric car leasing deals.

Other types of electric car finance

If you’ve decided that leasing isn’t for you, there are a number of other electric car finance options to choose from.

A short PCP deal is likely to be the most affordable alternative to leasing, but you could find that you’re limited to the smallest EVs on the market. Like a leasing contract, you’re restricted to a mileage cap and you must service and maintain the car to strict standards.

A personal loan or HP agreement gives you greater flexibility, but you’re exposed to the spectre of depreciation and negative equity.

Conclusion

The benefits of leasing are plentiful: lower monthly payments, greater flexibility and a clear handle on your monthly outgoings.

That said, leasing isn’t for everyone, so be sure to check out RAC Cars to look at the best options for you.

It’s important to do your homework before signing a leasing agreement and be sure to shop around for a great deal. There’s never been a better time to lease a new electric car!

^Correct at time of issuing

Medical experts in London today were asked if it is time to ease the COVID lockdowns.
Allergists were in favour of scratching it, but Dermatologists advised not to make any rash moves.
Gastroenterologists had a sort of a gut feeling about it, but Neurologists thought the government lacked the nerve.
Obstetricians felt certain everyone was labouring under a misconception, while Ophthalmologists considered the idea short-sighted.
Many Pathologists yelled, "Over my dead body!" while Paediatricians said, "Oh, grow up!"
Psychiatrists thought the whole idea was madness, while Radiologists could see right through it.
Surgeons decided to wash their hands off the whole thing and pharmacists claimed it would be a bitter pill to swallow.
Plastic Surgeons opined that this proposal would "put a whole new face on the matter."
Podiatrists thought it was a step forward, but Urologists were pissed off by the whole idea.
Anaesthetists thought the whole idea was a gas, and Cardiologists didn't have the heart to say no.
In the end, the Proctologists/Colorectal Surgeons won out, leaving the entire decision up to the a**holes in politics.😊

For his birthday, little Patrick asked for a 10-speed bicycle. His father said, "Son, we'd give you one, but the mortgage on this house is £80,000 & your mother just lost her job. There's no way we can afford it."
The next day the father saw little Patrick heading out the front door with a suitcase. So he asked, "Son, where are you going?"
Little Patrick told him, "I was walking past your room last night and heard you telling mom you were pulling out. Then I heard her tell you to wait because she was coming too. And I'll be damned if I'm staying here by myself with an £80,000 mortgage and no bike!"

Announcement today
further confirmation next Monday

https://www.bbc.co.uk/news/uk-57715496

Are you nervous? Excited? Frightened or overjoyed?

At 23:27 tomorrow night (5th July) our planet will be at the furthest point from the sun, this year. Having reached the Aphelion (the name for the furthest point), we will continue our orbit of the sun gradually getting closer until we reach the Perihelion (the name for the nearest point), on 4th January 2022.

Tomorrow, earth will be approximately 3 million miles (a little over 3%) further from the sun than we will be in January. This is due to us not having an entirely circular orbit, more of a slight elipse.

(Diagram courtesy of NASA)

A woman walks into a pub and sees a really good looking bloke sitting at the bar. She goes over and asks him what he is drinking.
He says "Magic Bitter".
She thinks that he's a bit of a nutter, so she walks around the bar for a bit. After realising that there is no one else worth talking to, she goes back to the man sitting at the bar.
She says, "That isn't really Magic Bitter, is it?"
He says, "Yes I'll show you." So he takes a gulp of the bitter, jumps out of the window, flies around the building 3 times, and comes back into the window.
She can't believe it. She says to him. "I bet you can't do that again."
So he takes another gulp of the bitter, flies around the building 3 times, and comes back into the window.
She is amazed. She says that she wants a Magic Bitter.
So the bloke says to the bartender, "Give her a pint of what I am drinking".
She gets her pint, takes a gulp, jumps out of the window, plummets 30 stories, breaks every bone in her body and dies.
The bartender looks up at the bloke and says, "Superman, I've decided you're really not very nice when you're drunk".

https://www.express.co.uk/life-style/life/1458099/sainsburys-flexible-recycling-system-new-shoppers-reaction-latest

https://youtu.be/dpnENSdpW3A

An old nun, who was living in a convent next to a
construction site, noticed the coarse language of the workers and decided to spend some time with them to correct their ways.And so, she decided she would take her lunch and sit
with the workers.
She put her sandwich in a brown bag and walked to the
spot where the men were eating.
Sporting a big smile, she walked up to the group and
asked: "And, do you men know Jesus Christ?"
They shook their heads and looked at each other, very
confused.
One of the workers looked up into the steelworks and
yelled out, "Anybody up there know Jesus Christ?"
One of the steelworkers yelled down. "Why?"
The worker yelled back,
"Cause his mam's here with his lunch!!

https://vm.tiktok.com/ZMdHkbbfM/

I have been trying on-line deliveries Asda and Sainsbury’s since Christmas for vol au vent cases without success. Neighbour also checked in Morrison.
Wondered if they available in your area?
If not available and you have time could you tackle manager/supervisor. Many enquiries from different areas might do the trick. Thank you
Fancy one right now filled with tuna/corn/mayo.

https://vm.tiktok.com/ZMduC1b2X/

1. In the 1400s a law was set forth in England that a man
was allowed to beat his wife with a stick no thicker than his
thumb.
Hence we have the rule of thumb. '
2. Many years ago in Scotland, a new game was invented.
It was ruled' Gentlemen Only ...
Ladies Forbidden ' ... and thus the word GOLF entered into
the English language.
3. Each king in a deck of playing cards represents a great
king from history:
Spades-King David,
Hearts-Charlemagne,
Clubs -Alexander the Great,
Diamonds-Julius Caesar
4. In Shakespeare's time, mattresses were secured on bed
frames by ropes. When you pulled on the ropes the
mattress tightened, making the bed firmer to sleep on.
Hence the phrase .........' goodnight, sleep tight. '
5. It was the accepted practice in Babylon 4,000 years ago
that for a month after the wedding, the bride's father would
supply his son-in-law with all the mead he could drink.
Mead is a honey beer and because their calendar was lunar
based, this period was called the honey month, which we
know today as the honeymoon.
6. Since 1966, England fans have said they are going to win
the cup at the start of every football competition, hence the
phrase" deluded twat

I do think it's time she retired.

Her face is so plastic that I'm worried she is going to rip! There has been so much "treatment" and botox that she can't even speak properly.

A younger her was tolerable but she's not doing herself any favours. Perhaps if she wore long sleeves, visually there could be a modicum of improvement, but her arms this evening looked awful. I don't think I've ever looked at a person's arms before and thought "They are ugly!"
Having seen that, I would hate to see anything else of her exposed.

Is it just me or does anyone else agree she is past her Use By Date.

https://inews.co.uk/news/technology/tiktok-fake-covid-test-forced-self-isolate-friend-learned-1081300

In my opinion sorry but are they kidding... with two random children and not even got her face right?

I just had a conversation with my soon to be son in law. His sister and partner battled Covid last Xmas and were very unwell. Two weeks ago they went to a birthday celebration. It was a BBQ of 20 people. A few days after they had a phone call to say some of the guests had gone down with Covid. They got tested and once again had it, as do most of the 20 . How? Because one of the couples had tested positive before the BBQ and kept quiet about it to attend! Not only have they infected everyone but one family had to cancel their holiday with their kids as they are having to quarantine. Utter selfishness

I've classed this one as Medium, so it should be ok for most people.
You can either print it, then fill it in and photograph it to send the answer, or just type the answers as a grid.
i.e.
123456789
234567891
345678912
456789123 etc.

Hopefully you'll enjoy it.

Paddy and Mick are two Irishmen working at the local sawmill.
One day, Mick slips and his arm gets caught and severed by the big bench saw. Paddy quickly puts the limb in a plastic bag and rushes it and Mick to the local hospital.
Next day, Paddy goes to the hospital and asks after Mick. The nurse says "Oh he's out in Rehab exercising".
Paddy couldn't believe it, but here's Mick out the back exercising his now re-attached arm.

The very next day he's back at work in the saw mill.
A couple of days go by, and then Mick slips and severs his leg on another bloody big saw thingamabob. So Paddy puts the limb in a plastic bag and rushes it and Mick off to hospital.
Next day he calls in to see him and asks the nurse how he is. The nurse replies "He's out in the Rehab again exercising". And sure enough, here's Mick out there doing some serious work on the treadmill.
And very soon Mick comes back to work.

But, as usual, within a couple of days he has another accident and severs his head. Wearily Paddy puts the head in a plastic bag and transports it and Mick to hospital.
Next day he goes in and asks the nurse how Mick is. The nurse breaks down and cries and says "He's dead".

Paddy is shocked, but not surprised. "I suppose the saw finally did him in". "No" says the nurse "Some dopey bastard put his head in a plastic bag and he suffocated".

Heatwave in Canada and USA. On top they also have outage in electricity. People dying. Must be a terrifying situation.
Watched interview with American scientists: Corporations portray themselves as super green when the opposite is true. When scientists speak out they and their families are threatened.
What a world to live in now. I am glad some youngsters are speaking out but wondered do they live accordingly e.g. do not buy the latest gadgets?

...just a laugh and one for Uncle Albert

..

1 It grows up, as a bug in a P-O-W camp? (10) - Stalagmite (Audrey F)
2 Sounds good to hear but not as rhetoric (13) - Orchestration (Audrey F)
3 Coat pan ornately and find a couple? (6, 3, 9) - Antony and Cleopatra (Audrey F)
4 A recording place from which I too swiped sound (8, 7) - Pinewood Studios (Boots)
5 Does Superman live in South Africa? (8) - Cape Town (Audrey F)
6 To do with extremely large space (12) - Astronomical (Audrey F)
7 A coward in the street or something fit for Queen? (10, 7) - Coronation Chicken (Audrey F)
8 Pain relief when aces align (9) - Analgesic (Terry S)
9 I tap italics on a computer to highlight letters (14) - Capitalisation (Audrey F)
10 It is to Persona as the Holy Ghost is to Brazil (8, 5) - Espirito Santo (Audrey F)
11 I, or admirer carve a farewell message (11, 4) - Arrividerci Roma (Audrey F)
12 A bounder can make oak groan (8) - Kangaroo (Audrey F)
13 It isn’t for your breakfast cereal but is still heated (9, 4) - Condensed Milk (Audrey F)
14 ZSL? Better to hide pawns! (9) - Whipsnade (Boots)
15 Shall we turn it into something accommodating? (5) - Halls (Clive F)
16 Nag Patron, reason to be unwelcome? (7, 3, 5) - Persona non grata (Audrey F)
17 Doh! Must I confuse the title and the song? (3, 5, 2, 5) - The Sound of Music (Audrey F)
18 It’s a pencil although it could be moulded! (10) - Plasticine (Audrey F)
19 Artist events dressed as something different (12) - Transvestite (Boots)
20 Big lefty defied injunction by singing “Something in the Air” (12, 6, 6) - Unidentified Flying Object (Audrey F)

... A snail decided to slither down my patio door (it had obviously decided to slither up previously - but I didn't see it at that time).

Everyone warned him to not meet the gorilla he raised ❤️ 🥺

https://youtu.be/OTE4pS5I-Is

There is a really stupid scenario going on locally for people having surgery at Queens hospital.

They have to go to Goodmayes hospital for their pre op. tests, then the same day go to King George hospital for a Covid test - literally 5 mins walk away, but the covid test at King George is drive through only and they must stay in the car and then be driven straight home to isolate.

People without cars are having trouble getting cabs to accommodate these rules

https://www.bbc.co.uk/news/health-57640550

I'm sick of hearing about this, now it's in face creams, eye creams, concealers, foundation, cleansers and shampoo , they'll be putting the stuff in bread next.

The police came round earlier looking for my wife, I said “she’s in the garden”. They came back and said,”we couldn’t find her”.

I said, “how deep did you dig”.

National Ice Cream Cake Day Date in the current year: June 27, 2021

National Ice Cream Cake DayAn ice cream cake is the perfect dessert for a hot summer day. Celebrate National Ice Cream Cake Day on June 27 by treating yourself to a slice or two of delicious ice cream cake with your favourite flavour.
An ice cream cake is exactly what it says on the tin: a cake that contains ice cream. Unlike the popular dessert baked Alaska, the ice cream in ice cream cakes doesn’t go into oven; it is added to the cake as it’s being assembled.

Ice cream cakes are believed to have derived from Victorian era desserts called bombes, which consisted of fruit and ice cream served frozen in a mold. They were named bombes because the most commonly used molds were spherical, so the dessert resembled a cannonball. Sometimes bombes were lined with biscuits or cake; this variation eventually evolved into the ice cream cake. The first ice cream cake recipes date back to the 1870s.

An ice cream cake typically consists of alternating layers of sponge cake and ice cream; the most popular variation is a three-layer cake, with a layer of ice cream between two layers of sponge cake. The sponge cake is baked as one would normally do, cut into the required shape if necessary, and then frozen. Ice cream is shaped using a mold, and the cake is then assembled. The trick is to assemble the cake while all the layers are still frozen.

Ice cream cakes are usually frosted with whipped cream for two main reasons. First, most frostings do not adhere well to ice cream and frozen sponge cake. Second, the light, airy texture of whipped cream is believed to complement the frozen cake perfectly.

Ice cream cake is a popular dessert in North America and Australia, but it is not particularly known in Europe. In the United States, ice cream cake is often served at birthdays, summer weddings, and Fourth of July parties. Independence Day-themed ice cream cakes are usually decorated in red, white and blue to resemble the American flag.

The Carvel ice cream franchise is particularly famous for its ice cream cakes, especially Cookie Puss, Hug-Me Bear and Fudgie the Whale. It has released multiple holiday-themed ice cream cakes, including, for example, Christmas-themed Snow Man and Santa Claus, Thanksgiving-themed Tom the Turkey, Halloween-themed Wicky the Witch and Dumpy the Pumpkin, Seamus the Leprechaun for St. Patrick’s Day, and others.

National Ice Cream Cake Day was submitted to National Day Calendar by the Jurado family and Cupcakes for a Cause, a Texas A&M student organization that brings together students who love baking to raise money for local charities. It has been celebrated annually since 2018.

Celebrate the holiday by ordering your favorite ice cream cake from a local bakery or making one yourself if you’re up to the task. Don’t be afraid to experiment with ice cream flavors and decorate the cake as outrageously as you want to! Invite your friends over to share the delicious cake with you and don’t forget to post pictures of the cake on social media using the hashtag #NationalIceCreamCakeDay to spread the word.

Pencil drawing by 16 year old Shania McDonagh.
click on for bigger pic.

BBC 10.30 pm -- The Producers ---

Mini tornado or lightning strike or something in Barking, walls knocked down and trees uprooted.

Yesterday picked up my tester kit in the market, just done my first ever test , there are 7 of everything except the tester panel.
Are you supposed to reuse this or is it just a one off and you throw away all 6 other bits unused. ?

To the person who stole my anti-depressants, i hope you're happy now