Contract Hire, often referred to as Leasing, is an agreement between the funder and a customer which allows you to drive a brand-new car for a fixed term. You pay an agreed initial payment plus regular monthly payments at a set amount for the term of the contract. You return the car at the end of the lease contract.
Contract Hire & Leasing has always been a popular option for businesses to acquire vehicles. More recently we’ve seen the personal leasing market grow rapidly, as people look to avoid depreciation and one-off large repair bills. Essentially, leasing a car or van allows you to spread the cost effectively. People may also find it’s an affordable way to get a higher value vehicle than they could afford if they were to buy it outright.
So, why lease an Electric Vehicle?
Leasing an electric vehicle (EV) can be a practical and cost-effective choice for many individuals. An all-electric vehicle runs on 100% battery power and charges from an electric charging point. That means zero fuel – zero emissions. On the road, you’ll experience instant torque, smooth, step-free acceleration, and quiet running. And with government incentives, reduced road tax, and lower servicing costs, choosing an electric car could be good for your wallet as well as the environment.
Here are some of the top reasons why people opt for leasing electric cars:
- Lower Monthly Payments: Electric cars tend to have higher upfront costs compared to their counterparts, but leasing allows you to spread these costs out over a fixed term, resulting in lower monthly lease payments compared to a traditional loan to purchase outright.
- Reduced Depreciation Risk: Electric cars depreciate quickly, and their resale value can be uncertain. When you lease, you’re not responsible for the car’s resale value. At the end of the lease term, you can simply return the vehicle and choose a new one.
- Access to the Latest Technology: Electric vehicle technology is rapidly evolving. Leasing allows you to stay up-to-date with the latest advancements in electric car technology and enjoy the benefits of improved range, charging infrastructure, and features that newer models offer.
- Environmental Benefits: By leasing an electric car, you’re reducing your carbon footprint and contributing to a cleaner environment. EVs produce zero tailpipe emissions, which helps combat air pollution and reduce greenhouse gas emissions.
- Lower Operating Costs: Electric cars are generally cheaper to operate than gasoline ones. Electricity is typically less expensive than gasoline, and EVs have fewer moving parts, reducing maintenance costs.
- Incentives and Tax Credits: Many governments offer incentives, tax credits, and rebates to encourage the adoption of electric vehicles. Some of these incentives can be applied to leased electric cars, reducing your overall costs.
- No Long-Term Commitment: Leasing typically involves a shorter commitment compared to buying a car with a loan. Most leases last for 2 to 4 years, which allows you to switch to a new EV or re-evaluate your transportation needs more frequently.
- Charging Convenience: With the growing availability of charging infrastructure, it’s becoming increasingly convenient to charge electric cars. Many EVs offer home charging solutions, and public charging stations are more widespread than ever, making it easier to charge your leased EV.
- Warranty Coverage: Most electric cars come with a warranty that covers the battery and electric drivetrain for an extended period. When you lease, you’ll likely be covered under the manufacturer’s warranty for the duration of your lease, minimising repair costs.
- Experimentation: Leasing an electric car allows you to try out the EV experience without a long-term commitment. This can help you determine whether an electric car suits your lifestyle and daily driving needs.
It’s important to carefully consider your driving habits, budget, and personal preferences before deciding whether to lease or purchase an electric car. Leasing can be an attractive option without the long-term commitment and potential depreciation risks associated with ownership.
Why should I lease from AMT?
We’ve been established for over 20 years and in that time, we have built up extensive knowledge of the marketplace and have developed strong relationships with manufacturers, dealerships and funding companies. Our financial standing and size gives us buying power – we purchase stock vehicles and larger volumes of vehicles at very competitive prices which means we can offer low prices to our customers. We can also offer some in-house funding if credit is an issue. For example, if you’ve just started a company and would struggle to get credit from a funder.