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|
|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|
Source: Leasing.com supplied by FBN Member Andrew Garaway from Dorset Car Leasing