Should You Buy or Lease Your Next Electric Vehicle?

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More and more people are turning to electric vehicles for a whole range of reasons. One of the primary motivations for people switching to electric vehicles is the environmental benefits as they produce zero emissions which reduces air pollution and greenhouse gas emissions that contribute to climate change. For this very reason, governments are implementing policies and offering incentives to encourage drivers to switch to electric vehicles by offering tax exemptions, grants and others.

Another big motivator to choosing an electric vehicle is the cost savings there are to be made in running costs, with much less to go wrong under the bonnet, and the cheaper cost of overnight charging at home when compared to filling a tank with petrol or diesel. Add to these reasons the continued improvement in the technology of electric vehicles - meaning faster charging times, longer driving ranges as well as an increasingly wide range of vehicles to choose from and you can begin to understand why the move to electric vehicles is rapidly becoming the latest trend. As you explore the possibility of purchasing an electric vehicle (EV), you may find yourself faced with a common dilemma: should you buy or lease your next electric vehicle? This blog will help you to navigate the decision-making process by exploring the pros and cons of both options.

The case for buying an electric vehicle

One of the key benefits of buying an electric vehicle is that there is the potential for long-term savings. While the initial purchase of an EV is typically higher than that of a traditional combustion engine vehicle, you may qualify for grants, governmental incentives, tax credits or rebates which can significantly reduce the upfront costs and by paying upfront you will remove any need for monthly payments.

Purchasing a vehicle outright means that you have full ownership, and it provides you with the freedom to modify and customise your vehicle to suit your preferences and needs. You can install a charging station at home, upgrade the car's software or personalise its appearance. Additionally, as an owner, you have the flexibility to sell it at any point which will potentially recoup some of your initial investment.

There are no mileage restrictions when you own the vehicle, which you are often restricted to when leasing. You have the freedom to drive as many miles as you desire without incurring excess mileage fees or restrictions.

The case for leasing an electric vehicle

Whilst buying may provide potential long-term savings, leasing will mean lower upfront costs. This means that if you want to drive an electric vehicle, especially if your fancy is taken by a luxury vehicle, such as the Audi Q8 E-Tron SUV,  then it makes driving an EV accessible without having to fork out a vast sum initially.

Lower maintenance costs are another benefit of leasing an electric vehicle. Most lease agreements can be made to cover routine maintenance and repairs during the lease period and if the vehicle is brand new, it may well be covered by the manufacturer's warranty giving you complete peace of mind and no hassles in unexpected expenses or having to find a reliable mechanic for specialised EV repairs. 

Technological upgrades are also a big draw in the case for leasing an EV. Electric vehicle technology is advancing rapidly, with new models offering improved range, charging speeds and other features. Leasing allows you to stay at the forefront of these technological advancements. When your lease ends, you have the option to return the vehicle and upgrade to a newer model with the latest features and improved performance.

Other considerations

Whether you buy or lease an EV it is important to consider the potential impact of depreciation. As every vehicle does, electric vehicles will experience depreciation over time and the rate will vary depending on the model, so it's worth researching and choosing a model that will hold its value well to minimise any potential loss in the long term.

Buying an electric vehicle requires a large amount of upfront investment, which may tie up a significant amount of your available funds. Leasing, on the other hand, allows you to conserve your capital for other investments or expenses. Consider your financial situation and determine what level of flexibility is important to you and your needs.  The decision to buy or lease an electric vehicle will also depend on your intended usage and the duration you plan to keep the vehicle. If you need a car for the long term and prefer ownership then buying might be the more suitable option, whereas if you prefer to have the latest technology and improved fuel economy as well as other new innovations as they are used, and you anticipate changing your car every few years, then leasing can provide you with more flexibility. 

To buy or not to buy? That is the question!

Choosing whether to buy or lease your next electric vehicle will ultimately depend on your personal circumstances, preferences and financial circumstances. Consider the pros and cons outlined in this blog and assess your individual needs and then make an informed decision that aligns with your budget, lifestyle and long-term plans.

Whichever way you decide to finance your next electric vehicle, the move is guaranteed to be an exciting journey and will help you set out on the road to a greener future, lowering your household's carbon footprint and doing your bit to reduce carbon emissions.

If you're considering the option of leasing an electric vehicle, our extremely experienced and knowledgeable team are only too happy to discuss your options and provide you with a free, no-obligation quote to help you figure out the best way to finance your electric car upgrade.

Get in touch or give us a call on 01299 407 360 today.

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