What is the cheapest electric car to lease in the UK? Can I lease an electric car with no deposit? These are all common question for the Car-E-Lease team in 2019 … quite peculiar when we didn’t hear much about this in 2018.
Without a doubt the electric revolution has begun and 2019 has will almost be known as the seminal year for anything pure electric. Even the BBC have begun to introduce basic know-how guides to the general public which is a clear indication of just how topical this has become.
However, as the BBC article suggests, there are concerns about “cost” when it comes to anything electric, in that the list price is generally quite a bit more expensive than a petrol or diesel combustion engine equivalent.
As we will discuss below, cost is something which needs to be carefully qualified and considered; plus the initial outlay needs to be put into perspective for anything contract hire.
As the BBC article mentions, the concern is that an electric car may present a barrier for some customers due to the financial cost. But this presumes that a customer will simply write a cheque for the vehicle, which just isn’t the case for most automotive purchasing/leasing decisions.
In most circumstances, a new car will be procured using some form of finance.
Contract hire, unlike a bank loan or hire purchase, takes into account the residual value of a vehicle, not just its list price. Because electric cars are becoming more and more popular, auction prices and demand are making them an attractive proposition. For a customer looking at leasing a vehicle (in it purest form), they will benefit from cheaper rentals, as the difference between the initial price and its future value are becoming narrower and narrower.
The better a residual value, the more the finance company will receive at auction and the less the customer will pay per month on their arrangement.
Some of the literature on alternative fuel is not bringing this to a customer’s attention and there is a feeling that an electric car would not be affordable, when this isn’t exactly the case. So for the customers on a budget, could they consider the Renault Zoe?
The EV Renault is one of the leading “cost-effective” electric car options without a doubt. Having been on the market for a number of years (another revamp is due in 2019), Renault have produced one of the best-selling cars in Europe (and have won copious awards), still beating the Tesla notwithstanding its recent success.
f course, the current government grant of £3,500 helps a little too!
The car is far from a budget experience with real driving experience suggesting 150 miles is achievable on a full charge plus it should take no more than 1 hour and 30 mins for a rapid charger to get the vehicle 80% charged (7 – 8 hours on a 7kw home charge point).
The award-winning option has captured the hearts of Europe, but can it do the same in the UK? With lead times operating around 8 weeks, this isn’t something which is out of reach if you are convinced with the Zoe.
So can I lease the Zoe no deposit? As we have been discussing, we cannot use the word “deposit” with any contract hire arrangement. Our regulator, the Financial Conduct Authority (FCA) is specific that customers must be treated fairly and they have introduced certain principles in order to bring about making improvements for those involved in financial services.
As such, a leasing broker must be very clear with their offering.
While deposit is a word we are all familiar with, this may insinuate that this is a purchase style product or that the money provided initially will be somehow returned at a later stage. To confirm, the first rental you pay with contract hire and leasing agreement is known as the “initial rental”. And yes, you can enter into a contract which does not require any big capital outlay.
Simply ask our team to quote on a 1/s (1 spread) or no initial rental basis and the quote you will receive will ask for no upfront costs.
This is ideal for businesses operating bigger fleets, company car users and for those customers who prefer to keep their money in the bank!
So a Zoe is both cost effective and available on a no deposit/no initial rental basis – what else should I consider? In looking at a cost, we encourage our customers to take a more whole life cost analysis. What this means is that they need to consider that electric charging is currently a cheaper option that the petrol station. In particular, for any customers with access to renewable energy via solar panels, photovoltaic tiles or ground source, they can effectively charge their vehicle for free. Based on fuel costing between £1.30 to £1.50 a litre, you can see how the cost-savings quickly mount up. For individuals and businesses, the government offers grants to reduce any initial outlay for charge points. Some local authorities are helping businesses to install rapid chargers to reduce charge times.
For company car users, consider that from 2020, an electric car which can travel 130 miles or more without emitting CO2 will bring about 2% BiK!
This is almost a free option. For the company, this also ensures they can claim back 100% of the rental against corporation tax, as it falls below the 110g/km threshold.
Electric vehicles are far easier and cheaper to service; there is simply less to go wrong. Unlike a combustion engine which needs various parts replacing and adjustment, electric vehicles do not necessitate this. As battery range grows, some of our high-mileage customers may be re-thinking their next new car!
In terms of the car shown here, the Renault ZOE HATCHBACK 80kW i Dynamique Nav R110 40kWh 5dr Auto, this is based on the following configuration:
· Special Metallic – Zircon blue
· Cloth – Black
· 16″ Aerotronic black shadow diamond cut alloy wheels
As standard the car includes 16” alloys, 4 speaker/2 tweeter sound system, automatic rain sensing wipers, heated rear windscreen, privacy glass, hill start assist, low friction launch, Bluetooth, cruise control, rear parkin sensor, chameleon charger, EVSE charger, touchscreen navigation, electrically adjustable and heated door mirrors, steering wheel mounted controls, body coloured externals, automatic lights and wipers, LED daytime running lights, bi-halogen projector lights, leather steering wheel, discovery pack, remote central locking, immobiliser and the RAID system. For customers needing more upgrade to the S Edition for BOSE sound system, reversing camera and the 17” black alloys.
On the technical-side, company car and business users can note the P11d at £29,015.00 and CO2 at 0g/km. The 40kWh battery (and 1 speed auto) will offer a 185 miles (WLTP) range on a full charge (250 miles NEDC), 110ps and 0-62 times of 11 seconds.