Should I Buy or Lease an Electric Car?

Many years ago, John Paul Getty stated boldly that if something appreciates, you should buy it; if it depreciates, you should lease it. Times have moved on since this quote. Mr Getty made his fortune from oil, something in increasingly short supply and something that more and more motorists are shunning. Well then, how does this logic translate to electric cars? The question looms, should I lease or buy an electric car?

Let’s look first at the 2 options.

When you lease a car, you are effectively renting it, you will never own it. Leasing a car has pros and cons. The pro being your outgoings, the con being always paying for a car. When you buy, you have a set amount to pay, whether upfront or by finance. Then, you take the risk of any loss when you sell.

Crucially the difference between which may be best for you is how often you replace your car. The more regularly you replace it, the more that leasing makes sense. How does it work with electric cars though?

Electric Cars Have 2 Variables: Range and recharging.

5 years ago, the typical electric car covered about 150 miles between charges. It’s around 200 miles now. That may not sound like too big a difference, but that can be the difference between running out on the motorway and charging safely at a service, with a working charge point. 5 years ago, most cars could recoup a maximum of 100 miles in 45 minutes, but today it’s double that! Loads of charge points can charge quicker than that too! Consider the technology in cars too, modern electrics are as much a piece of tech as a motoring machine, and we all know how quickly tech becomes obsolete.

Consider the Resale Value.

Electric cars are expensive to buy but hold their value well. With leasing, you just fund the depreciation. Leasing can make a seemingly expensive EV cheaper than a diesel equivalent, despite a higher list price! Of course, all of this is before you factor in salary sacrifice. Salary sacrifice makes new electric cars cheaper than running a 5-year-old diesel!

Naturally, buying still has its part! If you do very low mileage and replace your cars every 10 years, then buying is still a good fit. Well, unless you keep that car 40 years and it starts to appreciate… For most though, leasing is currently the best option when it comes to electrics!

So, maybe now you know whether you should buy or lease an electric car? If you’re interested in taking a look at the electric cars available on our scheme, get the Electric Revolution guide here!

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Electric Revolution Guide

This guide has a range of quotes from electric vehicles of all shapes and sizes, with a diesel vs electric comparison too! Enter your details below and we will send you the Electric Revolution Guide via email.

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