FB How much do I pay for my electric car?


Car Leasing - The Basics


How much do I pay for my electric car?

As with any finance contract on a new car you agree to lease the electric car for a set period of time, usually 3 years. At the start you make an initial payment and then monthly payments spread over the term of your contract. The initial payment is usually the equivalent of 3 or 6 monthly payments.


Car Leasing - The Basics


Are there any initial costs for my new leased electric car?

Yes there is an initial payment taken just after the start of your contract. This is usually equivalent to 3 of the monthly payments. So for example, if you have selected an electric car which will be £250 per month, the initial payment would be 3 x £250 = £750.

Orders will be subject to an arrangement fee, currently £199.00 +VAT

Car Leasing - The Basics


Can I get more than one electric lease car?

Yes. You can apply for as many as are available. Whether your finance application is successful depends on a range of factors. Once you've completed your application we will send you a receipt email. Then we will get back to you with 24 hours letting you know whether the application is successful, or what else can be done.

Car Leasing - The Basics


Can I add on extras, accessories and options to my car?

Yes, all the available options on these special offer cars can be seen after you have selected your car and you get to the choose my options page.

Car Leasing - The Basics


What is electric car leasing?

Electric car leasing is one way of getting a new vehicle. It is becoming more popular with both businesses and individuals.

Electric car leasing is the same as car contract hire.

You have an agreement to use the car for 2 or 3 years. You pay an amount per month. You also pay an amount at the start typically equal to three of your monthly payments.

The agreement includes how many miles you expect to drive per year over the three years of your contract.

You can choose to add maintenance to your contract. This means you pay an extra amount per month to cover the costs of servicing your car over the three years, replacing tyres when they are needed. It's a good idea if you want peace of mind and need to know what your car costs are going to be going forward.

At the end of your contract the car is collected. And that's it!

Or rather you start all over again.

Check out our latest offers here.

Car Leasing - The Basics


What happens to your electric car at the end of the lease?

Short answer; it is collected from you!

Long answer; when you lease an electric car you have an agreement to drive the car for three years in return for paying a set amount of money per month. You also pay an amount at the beginning, which is something like a deposit. When the three years are over the electric car is collected from you. It's then your decision whether to lease another car or not. It’s as simple as that!


Car Leasing - The Basics


What are the top 10 benefits of leasing an electric car?

  1. New; you're driving an electric car which is never more than three years old. And you can have a new car every three years.
  2. Budgeting; you know what your monthly car costs are going to be. Especially if you choose the maintenance option.
  3. Lower cost; when you buy a car you're buying the entire car, with leasing you're not, so you pay a lot less.
  4. Peace of mind; with electric car leasing you don't have to worry about what happens to the car after three years, it simply gets collected.
  5. Choice; With a lease company they are not trying to sell you a specific make or model. You can choose whichever you want.
  6. Advice; because the lease company is not trying to sell you a specific make or model, you can get impartial advice on any make or model.
  7. Affordability; you can choose the electric vehicle and terms which totally suit your budgets.
  8. Support; when you lease a car the lease company will want you to get another car after three years, so they will usually give you advice on any questions you have over the three year term.
  9. Simplified cost; you're monthly cost is just one payment covering the car, servicing, road fund licence.
  10. Your electric car; you are always driving a new car and never one that was once someone else's.

Car Leasing - The Basics


Are there any hidden costs with electric car leasing?

We don’t hide any costs from you!

But you’ve got to remember things like possible mileage cost. Let's explain.

When you lease an electric car part of the agreement is to say how many miles you expect to drive. This is stated as a mileage per year. It can be anything from 8,000 to 30,000. So over the three years of the contract you agree to drive a set amount of miles, let’s say 12,000 per year so 36,000 miles in total. But if you drive more than this there is a cost.

In the contract it will also state this cost. It’s usually 10p per mile. So if you drive an extra 1,000 miles per year, or 3,000 miles in total, you will need to pay 3,000 x 10p = £300.

Is this fair? Well yes it is because when you lease a car the amount you pay per month is linked to the value of the electric car when new compared to the end of the three years. And a large factor impacting on this value is the mileage. Think of the value of a car with 30,000 miles on the clock compared to one with 90,000 miles.

Another cost at the end of the lease can be to do with the state the car is returned in. The agreement expects there to be acceptable wear and tear on the car. But if there are big dents or severe scratches on the body work, or if the interior is really damaged in some way, the lease company may charge you. There is a degree of fairness in this and they will not charge for general wear, so if you look after the car, there usually won’t be a cost.

So these are not hidden costs but you need to be aware of them.

Car Leasing - The Basics


What are the costs involved with electric car leasing?

First off is working out your initial payment.

Think of it as swings and roundabouts – the more you can afford in your initial payment, the lower your monthly rentals.

We offer 3 options for initial payment – these are equivalent to 3, 6 or 9 times your monthly rental.

So if you see a price of £150 per month you can expect to pay £450, £900 or £1350 initially.

This is taken by direct debit around 2 weeks after delivery.

Then you have your monthly costs for the term of your contract.

So if the price quoted is £150 you can expect to pay this every month for your agreed rental period. It will be taken from your bank by direct debit.

There is also an arrangement fee – this is currently £199+VAT.

You pay this at the start of the agreement and it covers the cost of organising your car and the paperwork.

It has to be stated as a separate amount under FCA (Finance Conduct Authority) rules and cannot just be hidden in your monthly payment, so that you can see all the costs clearly.

Remember insurance, that’s the only other cost.

That's it!

To find your lease car - click here.

Car Leasing - The Basics


Why is leasing a car a smart move for your credit score?

If you think about it, debt and credit scores share the same analogy as the chicken and the egg! One is necessary for the other.

Click here to find out more

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