Short-term electric car lease
So you’re interested in seeing what all the fuss is about when it comes to electric cars. That’s great! But, before you commit, you want to try one out for 3, 6 or even 12 months to see if it’s right for you. One of your options is a short-term electric car lease.
Below, we’ll take a look at what a short-term lease is, what are the advantages, and help you to consider whether it’s the right choice for you.
What is a short-term electric car lease?
A short-term lease is a commitment to rent an electric car for an agreed period of time – usually 3, 6 or 12 months – however this is flexible. A short-term lease is usually taken out by drivers who want a car for a shorter period of time but with more benefits and affordability compared with renting.
What are the advantages of a short-term lease?
There are plenty of advantages when it comes to a short-term electric car lease.
- It’s generally much cheaper than renting a car over the same period of time
- Turnaround times are usually far quicker than buying
- Lease cars are often brand new
- No commitment to extend the lease at the end of the agreement
- Payments are fixed every month, so you know exactly how much you’ll be paying
- UK delivery available
- Tax and breakdown cover is sometimes included
- Covered under manufacturer warranty
- No maintenance costs
What will a short-term lease cost?
Costs can vary with a short-term lease, but the lowest monthly amount you’re likely to pay will be around £300-500. The lower the monthly costs are, the lower the mileage agreement will also be.
While some costs associated with driving are covered in the advertised cost – such as tax and sometimes breakdown cover – others won’t be. For example, car insurance and servicing usually isn’t included in a short-term lease, so this is something you will have to arrange separately.
Some companies however, do offer maintenance packages tailored to your lease term and mileage. This is usually an additional price per month, on top of your advertised lease price and can include servicing, tyre replacement, breakdown cover and MOT.
This of course all depends on the length of your lease, the make and model of the car, and the number of miles you expect to drive. The more expensive the vehicle is, and the more miles you want to drive, the higher the monthly costs. However, these costs will be agreed upon beforehand, so you’ll know what to expect every month.
What electric cars are available on a short-term lease?
There are many popular makes and models of electric cars available on a short-term lease. Depending on what you’re looking for, as well as your budget, your ideal EV should be available.
Is short-term leasing right for you?
If you’re looking to experience the advantages of an electric car, a short-term lease is a great option that can be more affordable than renting.
A short-term lease can be easier to secure if you have a poor credit history. You can then usually extend the lease at the end of the term should you want to drive your EV for a little longer. You’ll also have greater flexibility should you wish to change your car at the end of your agreement.
If you’re only looking for a car for a short period of time – such as a week or less – then a short-term lease may not be for you, as the costs are likely to be higher than renting for the exact amount of time you need.
You also need to bear in mind the additional costs on top of your monthly repayments, such as car insurance.
What’s the difference between a short-term lease and an EV subscription?
In many ways, short-term leasing and subscriptions are similar and come with plenty of advantages over buying an electric car. However, there are several differences that may make a lease more appealing than a subscription, and vice versa.
While a short-term lease grants you more flexibility than a long-term lease, a subscription allows you to make changes – or even cancel your agreement – with just 30 days’ notice and no penalties.
A subscription cost also includes everything you need to drive the car – including insurance – in a single monthly cost. However, this also means you don’t get to choose your insurance provider like you do when you lease.
With a subscription there’s no deposit to pay, whereas this can vary with a short-term lease depending on the length of the agreement.
Unlike with a subscription, within a lease contract there’s sometimes a purchase lease option, which allows you to purchase the car after a certain period. However, there is no obligation to do so and these usually apply to long-term leases.
What counts as short-term when it comes to leasing or subscribing to cars?
What counts as short-term depends on the provider, however, common agreements are 3, 6 or 12 months. With a subscription, your agreement is ongoing until you choose to end your subscription with 30 days’ notice.
What if I take out a car on a short-term basis but want to keep it afterward?
Many lease contracts have a purchase lease option, meaning you have the option to buy the car. However, this typically applies to long-term leases.
What if I don’t need the car for as long as I thought I would?
While short-term leases have greater flexibility than long-term leases, there are still limitations. For example, if you take out a three-month lease but no longer need your EV after six weeks, you’ll need to continue with the contract or pay a penalty to end the lease early.
Here we cover the costs of leasing an electric car, from initial and monthly payments, to servicing and charge point installation.