Electric Vehicle Leasing
Leasing a car is growing increasingly popular. Leasing takes away the hassle of what to do at the end of the contract, and means you’ll lose a lot of value of your vehicle through depreciation.
Vehicle leasing is often referred to as Personal Contract Hire (PCH) if the agreement is between you and the leasing company, or Business Contract Hire (BCH) if the contract is through a business.
Octopus Electric Vehicles are a specialist leasing company that focuses solely on the best electric vehicles (EVs) in the market. If you’re interested in getting an EV, talk to us.
This is Alvin ...
Alvin is Head of Consumer sales at Octopus Electric Vehicles and an all round leasing expert. With 10 years experience helping people get the best deal on their lease, you're in safe hands with Alvin.
For those of you who don't know the first thing about leasing (literally), we've picked Alvins' brain to bring you up to speed.
What Is Leasing?
'Leasing a car is effectively a long term rental. You’ll pay a fixed monthly fee to use the car for an agreed time period and number of miles. At the end of the agreement you hand the vehicle back. It’s a great, and increasingly popular way of driving an electric vehicle (EV).'
How does leasing work?
'With most leases (excluding Salary Sacrifice) you pay an initial rental - typically between three and nine months’ lease upfront. You’ll then pay a monthly lease payment, over the duration of the contract (The higher the initial rental, the lower the monthly payment)
The monthly lease cost you’ll pay will be based on the market value of the car, as well as your annual projected mileage. There’s normally a limit on the mileage; if you go over this there’ll be an excess mileage cost to pay at the end of the contract. As it’s a credit agreement you’ll have to go through a credit check before you can set up a leasing agreement
At the end of the lease contract you hand the car back, and you’re free to decide what car to drive next.'
What do you like most about leasing?
'I like to be at the forefront of change. Technological advancements in new electric cars are so rapid that what’s innovative now might be significantly less so at the end of a typical vehicle ownership cycle; this means that the vehicles may be liable to high levels of depreciation. Leasing insulates drivers from this.'
'Personally, this attracts me to leasing the most but there are also a bunch of other factors that mean leasing could well be right choice for you, including...
You’ll typically pay a lower initial deposit than if you were buying on finance
You’ll have fixed monthly costs
Typically you’ll be able to drive a better car than if you were leasing instaed of buying
If you lease your electric vehicle you won’t have any hassle trying to sell your EV at the end of your deal
You’ll have access to the full range of the latest EVs to lease'
What advice do you have for customers when selecting their lease
'The three things I always tell customers to consider are:
Savings - One thing worth thinking about when looking to lease a car is how much you’d also typically pay on petrol, road tax, congestion charges; costs you won’t have to worry about if you’re leasing an EV. These savings could go into leasing an even better car.
(Link to Fuel Calculator)
Mileage - What’s your typical annual mileage? This will have a bearing on your monthly lease payment (and try to be accurate so you’re not going to get hit with excess mileage fees).
End of contract - What would you do with the car at the end of the lease? If you want to update to the newest and best car you can, it’s probably good to go for a lease agreement. Likewise, if you’re the type of person that can’t face the stress of selling cars, leasing is the hassle free option.'
Last question, do you lease yourself?
'I'm the proud owner of Tesla Model 3 Standard Range Plus, which I leased via Octopus using their Go Green Car Scheme. This means I pay for my lease out of my monthly salary, pre-tax. With the Benefit in Kind tax reducing to 0% in April 2020, this will increase my savings Vs an similar ICE (Internal combustion engine) car to 40%!'
Octopus Electric Vehicles specialise in leasing electric vehicles (EVs).
If you’re interested in getting an EV, talk to us