Leasing a car has been popular in the UK for many years with many people choosing this method over a traditional vehicle purchase. Many use this approach as a way to lease luxury cars including brands such as Tesla, BMW and Porsche. Over the past few years, however, the UK has seen a considerable increase in the leasing of cheaper and more affordable makes and models, especially in the electric and hybrid vehicle market.
There are many potential factors driving this change. Increasing fuel prices, government policy, general acceptance of electric vehicles and simple availability all have a part to play in this shift. Other factors such as increases in public charge points also play into the electric vehicle leasing wheelhouse. However, is it really the right time to lease an electric car or is it more sensible to wait a few more years?
What’s Holding Us Back from EVs?
There are many schools of thought and concerns when it comes to leasing electric cars. What has been dubbed, “range anxiety”, seems to have less of a hold on many drivers here in the UK. This is the fear of running out of electricity before making it to a charging point. If this is a concern, recovery companies do exist who, for a monthly fee, offer a recharge rescue service to help stranded EV drivers. Even the AA is expanding its EV Support Services to keep up with the demand from the electric vehicle market. Overall, however, the increase in home charger installations nationwide, accessible public charging and larger electric car ranges is proving to most that running an electric car is simpler and more convenient than ever before.
Many potential electric car customers have been awaiting a possible and long-awaited price reduction in battery technology and therefore a reduction in the overall cost of electric and plug-in hybrid vehicles. This however hasn’t materialised, with many expecting battery demands and manufacturing shortages to completely outstrip supply by 2025. Even the Stellantis CEO, Carlos Tavares, the world’s fourth-largest carmaker has warned that there will be extreme battery shortages by 2024. He also suggests that the raw materials that go into making electric car batteries will be in short supply by 2027.
If this was to come to pass then the likelihood is that battery prices could skyrocket in years to come. This demand is only compounded by increasing worldwide manufacturing costs as well as high and ever-increasing transportation costs to us here in the UK not to mention low government investment in Uk manufacturing facilities.
Overall it seems, the sooner UK drivers take advantage of the fuel savings available right now and swap petroleum cars for electric vehicles, the sooner their pockets will benefit. This is especially true as fuel costs, especially diesel, are not expected to fall but increase all the way until the estimated peak oil usage, currently estimated in the year 2040.
So is it time to lease an electric car?
Although the former would suggest this to be wise, pricing isn’t the only reason to lease an electric car as your next car. The health of our environment and the health of the next generation is unquestionably well worth the transition. What’s great however is that DreamLease believes that right now you can do both. You can currently, lease a brand-new electric car whilst simultaneously cleaning up your local environment, all the time, saving your hard-earned money when compared with other vehicles and purchasing methods
This is made possible due to the huge savings gained from escaping the clutches of rising fuel prices at the pumps. In many circumstances, these large fuel savings can fundamentally cover almost half the costs of a monthly lease car when compared with petrol or diesel cars. The more miles that are driven the more savings can be made as electric charging costs, especially at home and at night, are very cheap when compared.
It is this simple but undeniable fact that is compelling more and more UK drivers to explore and ultimately lease more affordable electric vehicles. With these savings, no concerns about losing thousands of pounds to depreciation and with government policies becoming tighter, it is no wonder that we are seeing an explosion of small and affordable electric car leases. Many vehicle manufacturers have seen this trend and offer cars such as the as the MG 4, VW e-Up, Vauxhall Corsa EV and DS3, all great examples of affordable electric lease cars. In the next few years, DreamLease see this trend continuing and expect to see more and more affordable EVs flood into the UK market.