Why you would want to lease an electric vehicle rather than buy one

polestar2

In this blog, we discuss why you would want to lease an electric vehicle rather than buy one. Many people are looking closer at electric vehicles. There are so many on the market to choose from and now electric vehicles are populating the UK roads, the charging infrastructure is playing catch up at an incredible rate.

Electric Vehicles Available To Drive In 2021

With a new year comes lots of new things. One of those being car manufacturers bringing out fantastic new electric vehicles.

Take Volvo, this year the new Polestar 2 will be shortly gracing our presence. A rival to the Tesla Model 3, they say! The Polestar 2 is a performance saloon which features a 78kWh (kilo Watt hour) battery, as well as dual electric motors, which offers a combined 402bhp (break horse power). Range wise the Polestar 2 can achieve up to 292 miles and the top speed is 127mph (miles per hour), reaching 0-60mph in just 4.7 seconds. 

polestar2

 

Looking for something seriously impressive this 2021? Well you will be absolutely blown away with the Aspark Owl, which is expected to arrive in 2021. This dark beauty will truly take your breath away as it propels from 0-60 in a whopping 1.7 seconds! The claimed top speed for this spectacular performance car is 249 mph. Wow indeed…

Why Lease An Electric Vehicle

Despite being around for a few decades now, electric vehicles have only just started to turn heads and get people interested. As more early adopters decide to drive electric and speak out to the masses about their EV experiences, the more the masses listen. 

It helps that the UK government has pledged to ban electric vehicles by as soon as 2030. This puts pressure on the car manufacturers to produce electric vehicles. It also puts pressure on the National Grid to put in place means for providing enough electricity for charging electric vehicles.  

Cost

As we are all aware, cost is based on supply and demand. At the moment there isn’t enough demand to warrant manufacturers making mass electric vehicles. Therefore the cost of the batteries, components, technology and the like is still quite expensive. We all know that if you buy in bulk, the cost is greatly reduced. However manufacturers don’t wish to buy in bulk and be left with cars sitting on their forecourts not selling. 

Therefore this makes the cost of electric vehicles quite expensive. For many they cannot afford the upfront cost of electric vehicles, which can be anywhere between £20k to £30k for a smaller EV such as a Renault ZOE or BMW i3. Alternatively £40k upwards for a Tesla Model 3 and as much as £60-£100k for an Audi e-tron or Tesla Model X

Electric cars even for the smaller basic ones will cost you 25-50% more than a quite top of the range small electric petrol or diesel car. So this is the reason why leasing can be such a benefit. 

When you lease an electric vehicle on the other hand, it allows much more flexibility. In terms of choosing how much of a deposit to pay, deciding on monthly payment options and annual mileage allowance. Many leasing deals include added perks such as servicing and maintenance all covered by the leasing provider within the agreement. 

VAT

Another added benefit for why you should lease an electric vehicle as apposed to buying one is Value Added Tax. When you buy an electric vehicle or indeed any car or van, you pay 20% VAT. 

When you lease though, the leasing company has to pay that VAT. You as the person leasing do not have to burden that additional cost. So in fact you are essentially saving 20% of the total cost of the car.

Innovation 

Electric cars that come on the market tomorrow are far better than the electric vehicles available on the market today. Advances in technology and research means that in a short space of time, a much more brilliant electric vehicle will be brought out. One with an even better range, even better charging capabilities, an even better 0-60 and so on. 

Therefore if you buy an electric vehicle, you won’t be able to keep up with and experience the latest innovations. 

Should Companies Lease An Electric Vehicle?

In short YES! Here’s why…

Benefit in Kind 

Benefit in Kind is a term that is being bounced around quite a lot at the moment. However many people don’t understand what this really means. 

So what is Benefit in Kind?

Well, it is a taxation that applies to any company car. The way it works for a company car is depending on the fuel type of the vehicle, you look at the table on the HMRC website, and depending on the car you have, you look at the CO2 emissions. This will then tell you which bracket the vehicle you are driving falls into. You then apply the figure shown in the HMRC table for your relevant vehicle, to the P11D value of the car. 

You work out Benefit in Kind by multiplying the value of the car by the Benefit in Kind rate and then multiplying that by the tax rate. 

So why is this important?

Well when it comes to electric cars, the percentage you pay in tax is very low indeed! The government announced this back in March 2020, that Benefit in Kind tax on electric cars would be 0% for the 2020 tax year and would rise to 1% as of April 2021 and 2% from April 2022. 

For electric vans, they are being kept at 0% Benefit in Kind tax for 2021. 

What does this mean for companies?

As an employer, you will lease an electric vehicle for your employee so they have a company car. However for your employee, they will currently pay zero Benefit in Kind tax for having an electric vehicle. So that electric company car will cost your employee nothing. 

The employee doesn’t even leave the car at work. Instead the employee gets to use that car exactly like any other company car from their employer. They can take it home and fully enjoy it. 

Leasing An Electric Vehicle During Covid-19

Money is something that people are very mindful of at the moment and rightly so. We are living through a pandemic, which brings with it much uncertainty. Businesses are unable to open and as such many people have been furloughed. Sadly for some, businesses have had to close as they just cannot afford to carry on, in which case people have ended up losing their jobs. 

So with more people holding on to their purse strings and not spending out as much, this makes leasing much more lucrative. 

Instead of spending in excess of £20,000 all in one go on buying a new car, instead when leasing you are essentially paying a deposit of around £2000 and making small monthly payments. Therefore leaving much of your hard earned savings in the bank and protected should you need the cash for a rainy day. 

Lease An Electric Car Or Van From EVision Electric Vehicle Hire

When renting an electric vehicle from EVision, you pay no upfront deposit, all maintenance and servicing is covered by EVision. Plus you benefit from a free electric vehicle charging unit, which you can install at your home or place of business.

Either book your hire online directly via the EVision website. Alternatively, if you prefer to speak to a person, then give EVision a call Monday to Friday between 8am and 5pm on 01634 914063. The Vauxhall Vivaro-e can be collected from our Headquarters located in Kent. You can also collect from one of our satellite offices in Devon, Durham or Yorkshire. Alternatively, have the electric van delivered right to your door for a small additional charge. 

More electric vehicles will be available on the EVision fleet this 2021, so stay tuned. You can always sign up to the EVision newsletter at the bottom of this page to receive the latest news from EVision. As soon as new vehicles arrive, we announce it straight away via our e-mail outs.  

CONTACT THE TEAM AT EVISION ELECTRIC VEHICLE HIRE TODAY

Whether you would like to hire an electric car or van, EVision have plenty of EVs to choose from:

  • Audi e-tron
  • Vauxhall Corsa-e
  • Jaguar I-Pace
  • Tesla Model S, X and 3
  • Porsche Taycan
  • Kia e-Niro
  • Volkswagen ID.3
  • Vauxhall Vivaro-e

GET IN TOUCH

Contact the team at EVision on: 01634 914063 or email us mail@evrent.co.uk. If you have any questions at all regarding your hires, we will be happy to help.

Don’t forget we also sell charging points and charging cables. The vehicles on our fleet can be charged using a Type 2 charger, and also a 3 pin conventional plug. If you want to ensure you always have access to a charger, then be sure to order yours today!