Electric cars have been gaining in popularity in recent years. Drivers are more aware of their reduced environmental impact and the benefits of alternatives to petrol and diesel cars. But when it comes to getting an electric vehicle, there is some debate about whether leasing or buying is the best option.
The number of electric cars on the road has skyrocketed in the last ten years. It's difficult to imagine there were less than 1500 Battery Electric Vehicles (BEV) in the UK in 2011. Now there are nearly 400,000, and that doesn’t include plug-in hybrids. Recent data shows that more electric cars now sell in a week than in the entirety of 2012. And, there's been a nearly 30% increase in interest in electric car leases in the two years.
If you're considering switching to an electric car, you probably wonder whether to lease or buy. There are pros and cons to both options, and it ultimately comes down to what makes the most sense for your lifestyle and budget. Perhaps you're not entirely sold on electric cars and are considering a traditional petrol or diesel vehicle. To help you make a decision, we've put together a quick rundown of everything you need to know about buying and leasing an electric car.
Fully electric cars are the future. In 2030, the UK government will ban the sale of new internal combustion engine (ICE) vehicles. The ban means anyone wanting to drive a new car will have to go electric.
But 2030 is still a way off, and at the moment you can still choose to get a new petrol or diesel car. There is still a lot of trepidation from many drivers about electric vehicles, and much of it stems from the reputation of the first electric and hybrid cars. They were unreliable, needed charging constantly, and there was very little choice available.
But things have changed, and pure electric cars now easily compete with their petrol and diesel counterparts. The push towards net-zero has meant that almost every car manufacturer is currently producing an electric range. Ford recently announced it will add seven new models to its electric range by 2024.
But beyond the impending ban on ICE vehicles, what other reasons are there to choose a pure electric car over petrol or diesel models? Regardless of whether you buy or lease an electric vehicle, there are a tonne of benefits, including:
Almost all of the early issues with electric cars are no longer a problem, including car battery issues. Most new electric vehicles can go around 200 miles before needing to charge. Some of the longest range electric cars can go nearly 500 miles before recharging. Plus, there are over 40,000 charging points in the UK. The biggest question left around electric vehicles is whether to buy an EV outright or lease one?
If you're considering buying a brand new electric car, you have options available: buying outright, a personal contract purchase (PCP) or a hire purchase (HP). For most people buying an electric car outright is not an option, and more than 90% of new cars are bought on finance. So for most people, a personal contract purchase or hire purchase are the only options. If you're unfamiliar with the terms, here's a quick rundown:
But regardless of how you buy an electric car, there are benefits and downsides to consider before signing the dotted line.
The best alternative to buying an electric car is to lease an electric car. Leasing is one of the most popular ways to finance an electric vehicle, and for good reason. As electric cars are still developing and emerging in the global and UK market, they tend to cost more than their petrol or diesel counterparts.
As more and more electric vehicles hit the road, the price will probably drop, but leasing is an excellent option for now. When you choose to lease a car from a leasing company, you will be given a personal contract hire (PCH)— not to be confused with a personal contract purchase.
A personal contract hire agreement is relatively straightforward and means that you can drive the car for an agreed period of time. The duration of your contract is known as the "lease period". You return the car to the leasing company at the end of the lease period. At no point in the process do you own the vehicle.
Explore our complete range of electric cars today and find the perfect lease for you and your budget. At Tilsun Leasing, we have a wide variety of leases available for business and personal use. If you have any questions about leasing an electric car, please get in touch with us, and we’ll do everything we can to help.
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