Electric and Hybrid Car Lease Guide - The Ultimate Guide From How EV Leasing Works, Your Options & More

(Posted on 29/08/24)

As we all know, the transition from petrol and diesel cars to Electric & Hybrid vehicles (EVs) - or Electric leasing as it is known - is rapidly gaining momentum and becoming the most popular form of leasing.

As the production of petrol and diesel vehicles faces impending restrictions, the shift towards zero-emission vehicles - including Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) - is not just a trend; it's the future.

But where do you simply start when it comes to Electric and Hybrid Car Lease deals?
That is why we have put this handy guide together to help you understand your options and your next steps.

EVs And Hybrids Are Now More Affordable Than Ever

With EVs and hybrids becoming more affordable and practical - along with the charging infrastructure being more in place than ever before, with most shopping centres even now having one - they are now a compelling option for many drivers and business owners alike.

What is Electric and Hybrid Car Leasing?

Leasing an electric or hybrid vehicle basically involves entering into an agreement or a contract with a finance provider, where you commit to making fixed monthly payments for the duration of your contract.

What Happens at the End of Your Lease?

At the end of the lease term, simply return the car, and then you have options to explore the other latest models and drive another brand-new car for another set period - for instance, the Polestar 2 or Brand-new Hyundai Kona to name a few.

Customise Your Car to Your Needs

With electric or hybrid car leasing, you also have the flexibility to tailor your lease according to your needs, including determining the annual mileage, contract length, and initial rental payment for instance.

Each of these factors then influences your monthly costs, ensuring they align with your budget and lifestyle.

Your Initial Rental Explained

The initial rental is your first payment towards the lease, which is separate from your regular monthly payments.

You can choose to pay anywhere from 1 to 12 months' worth of lease payments upfront, and the more you pay initially, the lower your monthly payments will be over the duration of your lease contract.

This initial payment is not a deposit but a part of your lease contract value overall.

What Are The Benefits of Leasing an EV or Hybrid Vehicle?

There are many benefits of leasing an electric car, such as for instance:

Reduce Your Emissions

Leasing an electric or hybrid vehicle especially really contributes to a cleaner environment by reducing your CO2 emissions and tailpipe emissions, making a significant impact on air quality.

In turn, as electric cars are less polluting than traditional fuel cars on the road, you tend to expect congestion charges and Ultra-Low-Emission Zones in major cities and London as well.

Lower Running Costs

Electric and hybrid vehicles generally offer you lower running costs, with savings on fuel efficiency and reduced maintenance costs due to fewer moving parts and advanced technologies like regenerative braking and the latest electric motors as well to name just a few.

Tax Benefits

Vehicles with low or zero emissions can also offer you significant tax benefits, including lower Benefit in Kind (BIK) rates for EV drivers and reduced road tax as well.

This is particularly advantageous for company car users and Fleet Managers as well as those considering Business Car Leasing options and tax planning options when it comes to your commercial vehicles.

Affordable Access

Leasing also makes high-end electric and hybrid vehicles, such as the Nissan Leaf or Cupra Born, more accessible than ever before as well.

For instance, this allows you to spread the cost over fixed monthly payments, avoiding large upfront costs associated with purchasing a car outright.

Drive a Brand-new Car More Frequently

Leasing also allows you to drive a brand-new car more frequently, avoiding the depreciation concerns of ownership.

With models offering the longest range, such as the Tesla Model 3 long-range performance model - as well as some other pure electric vehicles - then range anxiety becomes less of an issue on the whole.

Home Charging Made Easy

We can also arrange for a company to come and install a home charger as part of your lease contract, ensuring that you get easy and efficient vehicle charging when you need it. It is also ideal for overnight charging on your driveway, so if this is not something you have installed currently, then this may be something to look at.

Alternatively, public charging points or workplace charge points and charging options are now commonly in place to help suit your driving habits when you need a quick recharge.

What Should You Consider When Leasing an Electric or Hybrid Vehicle?

There are many areas to consider when choosing an electric car lease; for instance, these can include:

Driving Range

You want to choose a vehicle with an electric range that matches your driving habits.

With new models offering extended and longer driving ranges - some are now close to 400 miles on a single charge - like ever before, such as MG Motor UK's latest releases - such as the MG Cyberster, there really is an option for everyone.

Charging Infrastructure

You want to ensure you have access to reliable charging options.

So, whether it is a home charging wall box, public charging points, or rapid charging stations, you want to consider what is most convenient for you to use on a daily basis.

Tax Incentives

For those in business, electric and hybrid cars offer significant tax incentives, including lower congestion charges and eligibility for UK government grants as well.

Contract Customisation

You can also tailor your contract hire agreement to fit your needs, from the initial rental to the contract length, and even include a maintenance package for added peace of mind.

How Do You Lease an Electric or Hybrid Car?

Leasing these cars is also really straightforward as well, as all you need to do is:

Pick Your Vehicle

With a large array of new electric car lease deals and hybrid leasing options available, including models like the Land Rover hybrids or the BMW electric SUVs, such as the BMW iX3, you can find a vehicle that perfectly fits your lifestyle.

You also want to consider both the annual mileage range and the specific benefits of leasing a green car as well.

Install a Charger

Many leasing companies partner with installation services to make your home charging setup really easy, and we do as well.

Customise Your Contract

Once you have chosen your lease vehicle, you can also customise your contract, which will also come with a fair wear and tear clause, to include options like a maintenance package to ensure a hassle-free overall leasing experience as well.

As you can see, leasing an electric car offers you a great way to enjoy the benefits of the latest EV technology without the large upfront costs.

By carefully selecting a vehicle that fits your driving habits, you can also ensure that you get convenient electric car charging options and tailor your lease contract to your needs - allowing you to transition to greener, more efficient driving really quickly.

Salary Sacrifice for EV Lease Cars

EV Salary sacrifice is another thing to consider, especially if you work for a company and are considering personal leasing, as this allows employees to lease an electric vehicle by agreeing to reduce their gross salary in exchange for a company-provided EV car.

This arrangement then offers you significant tax benefits, including reduced National Insurance and income tax, and is a cost-effective way to drive a new EV while benefiting from lower Benefit in Kind (BIK) rates as well.

What Are The Different Types of Electric Cars

There are different types of electric vehicles you can choose to lease. For instance, you have:

• Self-Charging Hybrid Cars
• Mild Hybrid Cars (MHEV)
• Plug-in Hybrid Cars (PHEV)
• Fully Electric Cars

What is a Self-Charging Hybrid Car?

A self-charging hybrid is a vehicle that combines a traditional fuel type, such as a petrol or diesel engine, with an electric motor and rechargeable battery. Unlike a plug-in hybrid, it doesn’t need to be plugged in to recharge. Instead, it captures energy that would otherwise be lost, using it to power the electric motor.

Some of these for you to take a look at, for instance, could include:

• Honda CR-V Hybrid
• Kia Niro Hybrid
• Lexus ES 300h
• Lexus NX 350h
• Lexus RX 450h
• Toyota Corolla Hybrid
• Toyota Prius
• Toyota RAV4 Hybrid

Mild Hybrids

A mild hybrid then bridges the gap between traditional petrol cars or diesel vehicles and plug-in hybrids. It features a smaller battery compared to a PHEV and includes a motor generator that both generates electricity and assists in boosting the engine’s performance as well.

Plug-In Hybrid Vehicle Leasing

Plug-In Hybrid Vehicles, also known as PHEVs combine the latest battery technology with a small internal combustion engine and can give you the best range; but, not the best tax breaks and benefits.

Fully Electric Car Leasing

When it comes to fully electric cars, these only have a full battery pack that powers the car and do not have any use for other traditional fuels like hybrids do and give you the best zero-emission cars available. These tend to give you the best tax benefits as well.

Charging Point Apps

When you are new to EV cars, one of the questions that comes up a lot is how do you know where charging points are. Well, either these can be built into the car itself, you just ask it, or you can use charging point apps, like Zap-Map, to help you find EV charging points in your local area.

These apps are then especially useful for those leasing an electric car, as they help you locate nearby charging stations, ensuring you can easily keep your vehicle powered up.

Other Related Electric Car Guides

We have put together another article to be your guide to this landscape, that if you like this one, you may also want to consider such as for instance:

• The Perks of Going Electric, Why It’s Time to Make the Switch
• How Going Green with Your Fleet Can Boost Your Bottom Line
• ULEZ Van Scrappage Scheme is Failing - only 2% of combustion vans scrapped and replaced with electric vehicles
• Are Salary Sacrifice Schemes the Key to Attracting Top Talent and Retaining Employees?

Who Are Fleetsauce?

At Fleetsauce, we focus on car and van leasing, providing expert advice on Personal Car Leasing and Business Leasing. Our team in Wrexham, Wales, keeps a close eye on the leasing market to find you the best electric car lease deals.

We manage large business contracts and enterprise-level agreements, delivering excellent service with every lease. As a Credit Broker authorised and regulated by the Financial Conduct Authority (FCA), we offer a secure and trustworthy leasing service.

Start Your Electric Car Leasing Today

Check out our range of lease deals or contact us Monday to Friday to discuss what you need. Our dedicated team is here to help you find the perfect Mercedes lease.

Ready to Lease Your New Electric or Hybrid Car?

Drive into the future with Fleetsauce; whether you are after a new electric car, a special offer on a hybrid, or a lease deal that suits your needs, we’re here to help.

Get in touch with us today to explore our EV lease deals, including Salary Sacrifice options, and start your journey with a brand-new car. Don’t forget to visit our latest news and Car Guides for more on Electric & Hybrid Car Leasing.