Leasing vs. Buying an Electric Car 2023

Electric cars have gained significant popularity in recent years, thanks to their environmental benefits and technological advancements. As more people consider making the switch to electric vehicles (EVs), the question of whether to lease or buy an electric car becomes increasingly important. 

We at AVL are industry leaders in leasing and have seen the world of electric cars flourish over the past ten years. In this article, we will explore the pros and cons of leasing and buying an EV in today’s automotive landscape.

This article explores:

• Today’s Automotive Environment
• New Car Inventories and EV Availability
• Financing and Leasing Interest Rates
• Leasing an Electric Car: Pros and Cons
• Buying an Electric Car: Pros and Cons
• The Best Electric Car Leasing Deals 

Today’s Automotive Environment

Before diving into the lease vs. buy debate, it’s essential to understand the current automotive market and the factors that can impact your decision-making process.

New Car Inventories and EV Availability:

The availability of electric vehicles in the market is a crucial factor to consider when deciding whether to lease or buy. Car dealers have seen a significant increase in EV inventories. As of the second quarter of 2023, dealers had over 92,000 EVs awaiting sale, compared to just 21,000 EVs a year ago. This increase in availability makes it easier for consumers to find an electric vehicle that suits their preferences and needs.

Financing and Leasing Interest Rates:

Another important aspect to consider is the current state of financing and leasing interest rates. Higher interest rates can impact the overall cost of owning an electric car, making it important to carefully evaluate your financial situation before making a decision. At AVL, we always aim to provide you with the best deal, make sure to check out our lease agreements or get in touch with a member of our team. 

Inflation and Budget Constraints:

The rise in inflation has put pressure on the budgets of many Brits. Combined with the increase in car transaction prices and higher interest rates, the current economic climate makes it challenging to acquire a car, whether it’s new, used, or leased. It’s crucial to assess your financial capabilities and determine how much you can comfortably afford before committing to a lease or purchase.

Leasing an Electric Car: Pros and Cons

Leasing an electric car offers several advantages that may appeal to certain individuals.

Let’s explore the pros and cons of leasing:

Pros of Leasing an Electric Car

• Lower Monthly Payments: 

  Monthly leasing payments are typically lower than loan payments, making leasing an attractive option for those looking to minimize their monthly expenses. 

• Access to New Technology: 

  Leasing allows you to regularly upgrade to the latest electric vehicle models, ensuring you always have access to the newest technology and features. 

• Warranty Protection:Leased electric cars are usually covered by the manufacturer’s warranty throughout the lease term, providing peace of mind and potential savings on repairs.

   

• Little Upfront Cash Required:Leasing often requires minimal upfront cash, making it more accessible for individuals with limited funds.

   

• No Resale Hassles:When the lease term ends, you can simply return the leased vehicle without worrying about the hassle of selling or trading it.

Cons of Leasing an Electric Car

• No Equity: Unlike buying, leasing does not build equity in the vehicle. At the end of the lease term, you have nothing to show for your payments. 
• Mileage Restrictions and Penalties: Lease contracts typically include annual mileage caps, and exceeding these limits can result in additional fees. 
• Limited Customisation: Leased vehicles must be returned in their original condition, limiting your ability to customise or personalise the car.

Buying an Electric Car: Pros and Cons

Buying an electric car outright offers its own set of advantages and disadvantages. 

Let’s explore the pros and cons of buying an electric car:

Pros of Buying an Electric Car

• Equity and Ownership: When you buy an electric car, you build equity in the vehicle, and eventually, you will own it outright once the loan is paid off. 
• Customisation Options: Owning an electric car gives you the freedom to customise and personalise it according to your preferences, allowing you to make it truly yours. 
• Flexibility to Sell or Trade: As the owner of an electric car, you have the freedom to sell or trade it at any time, enabling you to switch to a different vehicle or recoup some of your investment.

Cons of Buying an Electric Car

• Higher Monthly Payments: Buying an electric car typically involves higher monthly loan payments compared to leasing, which can strain your budget. 
• Higher Down Payment: Electric cars often come with a higher price tag than traditional gasoline-powered vehicles, requiring a larger down payment. 
• Risk of Depreciation: Like any vehicle, electric cars can depreciate in value over time, potentially leaving you with a car that is worth less than what you owe on the loan. 
• Maintenance and Repair Costs: As the owner, you are responsible for the maintenance and repair costs of the vehicle, which can add up over time. 
• Long-Term Commitment: Buying an electric car is a long-term commitment, and it may not be suitable for individuals who prefer to switch vehicles frequently.

Additional Factors to Consider

When deciding whether to lease or buy an electric car, there are a few additional factors that can influence your decision:

• Used Electric Cars: Purchasing a used electric car can be a cost-effective option, especially if it still has remaining warranty coverage. However, it’s crucial to evaluate battery health and consider any available tax incentives for used electric vehicles. 
• Budget and Financial Situation: Assessing your budget, income stability, and financial goals is crucial when deciding between leasing and buying. Consider your monthly cash flow, down payment capabilities, and long-term financial commitments before making a decision. 
• Personal Preferences and Lifestyle: Your personal preferences, lifestyle, and driving habits should also be taken into account. Do you prefer the latest technology and frequently switch cars? Or do you value long-term ownership and customization options?

The Best Electric Car Leasing Deals 

All of the electric vehicles we have on our website are made to go the distance, however we think you will love our top three picks below. 

The Peugeot 3008:

The Peugeot 3008 is a true game-changer in the world of electric vehicles, seamlessly blending style, performance, and eco-friendliness into one remarkable package. As an electrified version of the acclaimed SUV, the Peugeot 3008 embodies a forward-thinking approach to driving, delivering an exceptional experience that sets it apart from the rest.

Effortless E-Mobility: 

With its fully electric powertrain, the Peugeot 3008 offers an impressive range and zero tailpipe emissions, making it a sustainable and responsible choice for environmentally-conscious drivers. Say goodbye to petrol stations and embrace the convenience of home charging, while reducing your carbon footprint.

Impressive Performance:

The Peugeot 3008’s electric powertrain boasts instant torque, delivering rapid acceleration and a smooth, silent drive. Its seamless transmission and dynamic handling ensure an exhilarating driving experience, making every journey a delight.

Innovative Technology:

Packed with cutting-edge technology, the Peugeot 3008 enhances safety, convenience, and connectivity. From advanced driver assistance systems to an intuitive infotainment interface, this electric SUV is designed to keep you informed and entertained on the road.

Range: On a battery that has been fully charged, it is possible to attain a driving range of approximately 250 miles.

Lease Price: The Peugeot 3008 Suv  – 1.6 Hybrid 225 GT e-EAT8 is available on our website for just £398.70. 

The Fiat 500 Hatch:

The Fiat 500 Hatch is a standout electric vehicle that perfectly encapsulates the spirit of fun, style, and sustainability. As an all-electric version of the iconic Fiat 500, this compact hatchback offers an unparalleled driving experience that’s both eco-friendly and practical.

Efficient Electric Power: 

Embrace the future of driving with the Fiat 500 Hatch’s electric powertrain, which provides a seamless and quiet ride. Its eco-conscious engineering ensures zero tailpipe emissions, reducing your carbon footprint while contributing to cleaner air in urban environments.

Ideal Urban Companion:

With its compact size and agile handling, the Fiat 500 Hatch is perfectly suited for navigating busy city streets and tight parking spaces. Maneuver effortlessly through traffic, making your daily commutes and errands a breeze.

Charming Design:

Staying true to its Italian heritage, the Fiat 500 Hatch boasts a charming and distinctive design that turns heads wherever it goes. Its retro-inspired styling, combined with modern touches, creates a truly iconic and eye-catching presence on the road.

Range: On a battery that has been fully charged, it is possible to attain a driving range of approximately 199 miles.

Lease Price: The Fiat 500 Hatch 500 3 Door Hatch – 1.0 mHEV 70hp Dlcv Part Leather is available on our website for just £185.71. 

The Jaguar E-Pace:

The Jaguar E-Pace is a remarkable electric vehicle that seamlessly merges luxury, performance, and sustainability. As an electrified version of the beloved E-Pace SUV, this cutting-edge model redefines what it means to drive an electric car.

Effortless Electric Power:

The Jaguar E-Pace’s electric drivetrain delivers instant torque, providing exhilarating acceleration and a smooth, silent ride. Say goodbye to traditional fuel and embrace emission-free driving, contributing to a greener future without compromising on power or performance.

Long-Range Capability:

With its advanced battery technology, the Jaguar E-Pace boasts an impressive driving range, allowing for longer journeys with ease. Whether it’s your daily commute or a weekend adventure, this electric SUV has you covered, eliminating any range anxiety.

Sophisticated Design:

As expected from Jaguar, the E-Pace exudes elegance and sophistication with its sleek lines and captivating design. Inside the cabin, premium materials and modern technology create a luxurious and comfortable space, ensuring a refined driving experience.

Range: On a battery that has been fully charged, it is possible to attain a driving range of approximately 292 miles.

Lease Price: The Jaguar E-Pace – 1.5 P300e Phev R/Dy S Auto AWD is available on our website for just £639.71.  

Get in Touch with AVL Today

We hope you have found this useful and informative, makes sure to Check Out all of our Electric Vehicle Options Here!