8 Reasons You Should Consider Leasing an Electric Car
Key Insights:
Financial Advantages: EV leasing through salary sacrifice schemes offers substantial savings with lower upfront costs, protection from depreciation, and favourable 3% BIK tax rates for 2025/26, potentially reducing monthly costs by half.
Future-proofed Technology: With rapid advancements in EV capabilities, leasing protects drivers from technological obsolescence by allowing upgrades to newer models with improved range and features every 2-4 years.
Comprehensive Savings: Beyond purchase costs, EV drivers benefit from significantly cheaper running costs (£10-15 vs £50-70 for petrol), reduced maintenance requirements, ULEZ exemptions, and discounted charging through salary sacrifice.
The electric vehicle revolution is well underway in the UK, with record numbers of drivers making the switch from petrol and diesel to battery-powered motoring. As the government continues to promote greener transportation options and manufacturers expand their electric offerings, leasing has emerged as one of the smartest ways to save money by driving electric, whilst reducing your impact on the environment without compromising on the usual comforts.
Whether you're considering your first electric car or looking to upgrade your current vehicle, here's why leasing an EV through schemes like The Electric Car Scheme makes perfect financial and practical sense in 2025.
Lower Initial Costs and Predictable Monthly Payments
One of the biggest barriers to EV adoption has been the higher purchase price compared to conventional vehicles. Most electric cars start at around £20,000, with premium models easily exceeding £40,000. Leasing removes this significant upfront cost, replacing it with an affordable initial deposit and manageable monthly payments.
When you lease an electric car, you're only paying for the depreciation during your contract period – not the entire value of the vehicle. This means your monthly costs are substantially lower than financing to own, and you can drive a more premium electric model than you might otherwise afford.
For example, through a salary sacrifice car lease scheme, you could drive an electric car worth £35,000 for monthly payments that are 20-50% lower than traditional financing options.
Protection from Rapid Technological Obsolescence
The electric vehicle market is evolving at an astonishing pace. Battery technology that was cutting-edge just three years ago can now seem outdated as newer models offer significantly improved range, charging speeds, and features.
By leasing rather than buying, you're protected from this rapid technological obsolescence. At the end of your lease term (typically 2-4 years), you can simply hand back your current EV and upgrade to the latest model with all the newest advancements.
Consider this: in 2020, a typical affordable electric car offered around 150 miles of range. Today's comparable models deliver 250+ miles, along with faster charging and more sophisticated driver assistance systems. Leasing ensures you're never stuck with yesterday's technology.
Tax Benefits and Financial Incentives
The UK government continues to incentivise electric vehicle adoption through various tax benefits, and leasing allows you to take full advantage of these savings.
For business users and company cars, the benefit-in-kind (BIK) tax rates for electric vehicles remain exceptionally low at just 3% for 2025/26. Compare this to rates of 25-37% for petrol and diesel vehicles, and the savings become substantial.
Even more compelling is the option to use a salary sacrifice scheme for your electric car lease. Through The Electric Car Scheme and similar providers, you can save on income tax and National Insurance contributions, potentially reducing your effective monthly costs by up to 50% - with salary sacrifice charging also available!
Minimal Maintenance Worries and Costs
Electric vehicles have significantly fewer moving parts than traditional combustion engine cars. There are no oil changes, fewer brake replacements (thanks to regenerative braking), and generally lower maintenance requirements.
Most electric car leases come with the option to include maintenance packages, ensuring any servicing or repairs are covered in your monthly payment. This creates complete peace of mind and eliminates unexpected costs throughout your lease term.
For businesses considering a fleet of electric vehicles, this predictability allows for precise budgeting and reduced fleet management headaches. Comparing salary sacrifice vs business leasing options can help identify the most cost-effective approach for your organisation.
Freedom from Depreciation Concerns
All vehicles depreciate, but the rapidly evolving EV market creates unique depreciation challenges. Some early electric models suffered steep value drops as newer, longer-range versions were released.
When you lease, depreciation becomes the leasing company's problem, not yours. You're contractually protected from any unexpected market changes or shifts in consumer preferences that might affect resale values.
This freedom from depreciation worry is particularly valuable in the current transitional period of EV adoption, where technological advancements and shifting government policies can have unpredictable effects on future resale values.
Dramatically Lower Running Costs
The day-to-day savings of driving an electric car are substantial. Charging an EV costs significantly less than filling up with petrol or diesel, especially when taking advantage of off-peak electricity rates.
A typical electric car costs around £10-15 to fully charge at home, providing 200-300 miles of range. The equivalent journey in a petrol car might cost £50-70 in fuel. Over a three-year lease period, these savings can amount to thousands of pounds.
Additionally, electric car charging can be salary sacrificed through The Electric Car Scheme’s Charge Scheme which will save you 20-50% on the cost of public charging. On top of that, EVs avoid charges in Ultra Low Emission Zones like London's ULEZ, creating further savings for urban drivers.
Expanding Charging Infrastructure
The UK's charging network continues to grow rapidly, with new public charging points being installed daily across the country. Home charging options are also becoming more affordable and sophisticated, with smart chargers allowing you to take advantage of the cheapest electricity rates.
By leasing an electric car now, you'll benefit from this continuously improving infrastructure. Many workplaces now offer free or subsidised charging for employees, and public networks provide increasingly convenient rapid charging options for longer journeys.
The latest electric cars also feature improved charging capabilities, with many models now able to accept 150kW+ charging speeds that can add 100+ miles of range in just 15 minutes. Some cars, like the Hyundai Ioniq 5 can recharge most of their battery in just 17 minutes when using a rapid charger.
Is Electric Car Leasing Right for You?
Whether you're an individual driver or a business looking to electrify your fleet, leasing offers the most flexible and cost-effective path to EV adoption. The combination of lower monthly costs, protection from technological obsolescence, and significant tax benefits makes leasing particularly attractive for electric vehicles.
Through The Electric Car Scheme's salary sacrifice option, employees can save 20-50% on a brand new electric car while employers benefit from reduced National Insurance contributions and enhanced green credentials.
As the electric revolution accelerates, leasing provides the perfect way to stay current with technology while maximising financial benefits and contributing to a cleaner environment.
Ready to explore your electric car leasing options? Contact The Electric Car Scheme today to discover how much you could save with our salary sacrifice programme.
If you’re interested in leasing an EV through salary sacrifice or want to learn more about how electric car salary sacrifice can work for your company, visit our blog here.
Last updated: 11.04.25
