How much does it cost to lease an EV? This is one of the first questions people ask when considering switching from a petrol or diesel car to an electric vehicle.
The simple answer is that there isn’t one fixed price. The cost of leasing an EV depends on the vehicle, contract length, annual mileage, initial rental, specification and current finance rates.
You can find electric cars available at relatively affordable monthly prices, while premium electric SUVs and performance models can cost considerably more.
The monthly rental, however, is only part of the overall cost. When comparing an electric car lease, you should also consider the initial payment, charging, insurance, maintenance, mileage and whether you’re leasing personally or through a business.
In this guide, we’ll explain how much it costs to lease an EV, what affects the monthly payment and how to compare electric car lease deals properly.
How Much Does It Cost to Lease an EV?
So, how much does it cost to lease an EV in the UK?
There is no standard price because every lease agreement is different.
As a general guide, electric car leasing can range from around £150 to £800+ per month, depending on the vehicle and contract.
Smaller electric cars can sometimes be available for a relatively low monthly payment, while larger SUVs, premium models and high-performance EVs can cost considerably more.
You also need to consider whether the advertised price is:
- Including or excluding VAT
- Based on a large initial rental
- Based on a particular annual mileage
- For a specific contract length
- With or without maintenance
This is why comparing the headline monthly figure alone can be misleading.
What Determines the Cost of Leasing an EV?
Several factors determine how much it costs to lease an EV.
1. The Electric Car You Choose
The vehicle itself is the biggest factor.
A small city EV will generally cost less to lease than a large premium electric SUV.
The manufacturer’s list price, expected future value and demand for the vehicle can all influence the lease rental.
2. Contract Length
The length of the lease can affect your monthly payment.
Common terms include:
- 24 months
- 36 months
- 48 months
A longer contract can sometimes produce a lower monthly rental, although you should always compare the total amount payable.
A shorter agreement may cost more each month but gives you the opportunity to change vehicles sooner.
3. Annual Mileage
Your mileage allowance is another major factor.
For example:
5,000 miles per year
will generally produce a different rental from:
15,000 miles per year.
If you regularly travel long distances, don’t deliberately choose a low mileage allowance just to make the advertised monthly payment cheaper.
You could face excess mileage charges when the vehicle is returned.
4. Initial Rental
EV lease deals are often advertised with an initial rental.
For example:
£2,400 initial rental + £300 per month
could be advertised as a £300 monthly lease, even though you need to pay £2,400 at the start.
Initial rentals can vary considerably.
Common structures include:
- 1 + 23
- 3 + 23
- 6 + 23
- 9 + 23
- 1 + 35
- 3 + 35
The first number represents the initial rental, with the remaining number representing subsequent monthly payments.
Always look at the complete payment structure rather than just the monthly headline.
How Much Is an EV Lease Per Month?
If you’re wondering how much does it cost to lease an EV per month, the answer depends on the type of electric car you’re considering.
Small Electric Cars
Smaller EVs can sometimes be available from around:
£150–£250 per month
depending on the deal, mileage and initial rental.
Family Electric Cars
Popular family EVs can often fall into the:
£250–£400+ per month
range.
Premium Electric Cars
Larger and more luxurious EVs can cost:
£400–£700+ per month
with some high-end models exceeding this.
These figures are only general examples. Actual lease prices change regularly as manufacturers, finance companies and market conditions change.
What Does an EV Lease Include?
A standard electric car lease normally covers the use of the vehicle for an agreed period and mileage.
It doesn’t necessarily include every cost associated with running the car.
Depending on the agreement, you may still need to pay for:
- Insurance
- Electricity
- Road-related costs
- Tyres
- Servicing
- MOT where applicable
- Repairs outside warranty
- Excess mileage
- Damage beyond fair wear and tear
Maintenance can often be added to a lease agreement for an additional monthly cost.
Does Maintenance Cost Extra?
It can.
Some electric car lease deals are available with maintenance included, while others are supplied without a maintenance package.
A maintenance agreement can potentially include:
- Scheduled servicing
- Routine maintenance
- Replacement tyres
- MOTs
- Breakdown assistance
Whether it represents good value depends on the vehicle, contract and expected mileage.
If you’re comparing two deals, make sure you compare like-for-like.
A £299 monthly lease with maintenance included isn’t directly comparable with a £279 lease without maintenance.
How Much Does It Cost to Charge an EV?
When working out how much it costs to lease an EV, don’t forget charging.
Electricity is effectively your fuel cost.
The amount you spend depends on:
- Battery size
- Vehicle efficiency
- Electricity tariff
- Where you charge
- How many miles you drive
Charging at home is often more convenient and can be cheaper than relying entirely on public rapid chargers.
For example, if an EV uses approximately 18 kWh per 100 km, your electricity cost will depend on the price you pay per kWh.
The actual figure varies significantly between households and charging networks.
Is Leasing an EV Cheaper Than Buying One?
This depends on how you define “cheaper”.
Leasing can provide a lower upfront commitment because you’re paying for the use of the vehicle over a fixed period rather than buying the entire car.
Buying gives you ownership and means there is no lease mileage limit.
However, the owner takes responsibility for depreciation and eventually has to sell or trade in the vehicle if they want to change it.
With leasing, the vehicle is normally returned at the end of the agreement.
For drivers who like changing cars every few years, leasing can be an attractive option.
What Is the Cheapest Way to Lease an EV?
If your priority is keeping the monthly cost low, consider:
Smaller EVs
Smaller vehicles generally cost less to lease.
Lower Annual Mileage
If you genuinely drive fewer miles, a lower mileage allowance can reduce the rental.
Longer Contract
A longer contract can sometimes reduce monthly payments.
Lower Initial Rental
Don’t automatically choose the lowest monthly figure. A deal with a higher initial rental could have a similar or higher total cost.
In-Stock Vehicles
Cars already in stock can sometimes have particularly competitive lease offers.
Compare the Total Cost
This is perhaps the most important point.
Don’t compare just the monthly rental.
Example: Comparing Two EV Lease Deals
Imagine you are comparing two electric cars.
Deal A
- £299 per month
- 9 initial rentals
- 36-month contract
Total rentals:
£299 × 36 = £10,764
Deal B
- £349 per month
- 3 initial rentals
- 36-month contract
Total rentals:
£349 × 36 = £12,564
The first deal may appear cheaper from the monthly payment, but the initial rental structure and total contract cost need to be considered.
Always calculate the full cost before deciding.
How Much Does It Cost to Lease an EV for Business?
Business EV leasing can be structured differently from personal leasing.
A business lease may be advertised:
£299 + VAT per month
rather than VAT-inclusive.
A VAT-registered business may be able to recover some VAT depending on how the vehicle is used and the relevant tax rules.
Businesses should also consider:
- Benefit-in-Kind tax
- Corporation tax
- VAT
- Maintenance
- Insurance
- Charging
- Business mileage
For company cars, the monthly lease payment is only one part of the overall calculation.
How Much Does It Cost to Lease an EV Personally?
Personal electric car leasing is normally advertised with VAT included.
You will generally pay:
- Initial rental
- Monthly rentals
- Insurance
- Charging
- Maintenance if not included
- Other running costs
Personal leasing can be attractive for drivers who want a new EV without taking on the risk of owning and eventually selling the vehicle.
Does an Electric Car Cost More to Lease?
Not necessarily.
Electric vehicles can have higher list prices than some petrol or diesel equivalents, but lease prices are determined by much more than the list price.
Factors such as depreciation, demand, manufacturer support and predicted future value all influence the rental.
This means you can sometimes find an electric car with a lower monthly lease payment than a petrol or diesel vehicle with a similar list price.
Are Electric Cars Cheap to Run?
They can be.
One of the major attractions of an EV is potentially lower day-to-day running costs.
Electric vehicles generally have fewer moving mechanical components than conventional combustion-engine cars.
Potential savings can include:
- Electricity compared with petrol or diesel
- Servicing
- Engine oil
- Some routine mechanical maintenance
However, electricity costs vary and public rapid charging can be considerably more expensive than home charging.
Your actual running costs will depend on how and where you charge.
What About Insurance?
Insurance is normally separate from your EV lease.
Your insurance cost can depend on:
- Driver age
- Location
- Vehicle
- Annual mileage
- Driving history
- Level of cover
Some electric vehicles can be more expensive to insure than their petrol equivalents.
This is why insurance should be included in your overall budget when deciding how much it costs to lease an EV.
What Happens at the End of an EV Lease?
At the end of a typical lease, the vehicle is returned to the finance company.
It will generally be checked for:
- Mileage
- Condition
- Damage
- Missing equipment
- Fair wear and tear
If you’ve exceeded your agreed mileage, excess mileage charges may apply.
Damage beyond fair wear and tear can also result in additional charges.
You normally don’t have to worry about selling the vehicle yourself.
Can You Buy an EV at the End of a Lease?
A standard lease is generally designed around returning the vehicle.
Some finance arrangements can provide different options, but you shouldn’t assume that you will automatically have the right to purchase the vehicle at the end.
If owning the vehicle is important to you, consider whether another form of vehicle finance would be more appropriate.
Is an EV Lease Worth It?
An EV lease can make sense if you:
- Want a new electric car
- Prefer predictable monthly payments
- Don’t want to sell the car later
- Want to change cars every few years
- Have predictable annual mileage
- Can charge conveniently
- Want to avoid taking depreciation risk
It may be less suitable if you:
- Drive very high mileage
- Want to own your vehicle
- Want unlimited mileage
- Plan to keep the car for many years
- Don’t have convenient charging
Common EV Leasing Mistakes
Choosing the Cheapest Monthly Payment
A low monthly rental can hide a large initial rental.
Underestimating Mileage
This can result in excess mileage charges.
Forgetting Insurance
Insurance can be a significant part of the overall cost.
Ignoring Charging Costs
Your EV still needs to be “fuelled”.
Not Comparing Maintenance
Check whether servicing and tyres are included.
Comparing Different Contract Structures
Always compare initial rental, monthly payment, term and mileage together.
Looking Only at the List Price
The list price doesn’t tell you what the lease will cost.
How to Find a Good EV Lease Deal
When comparing electric car leasing offers, look at:
Initial Rental
How much do you have to pay upfront?
Monthly Rental
What will you pay every month?
Contract Length
How long are you committed?
Mileage
Does it reflect your actual driving?
Maintenance
Is servicing included?
VAT
Is the price VAT-inclusive?
Total Cost
What will you pay across the complete agreement?
End-of-Contract Terms
What happens when the vehicle is returned?
This gives you a much better picture of the actual value of the deal.
How Much Does It Cost to Lease an EV? Example Budgets
Here are some simplified examples to illustrate the different price points.
| Type of EV | Example Monthly Range |
|---|---|
| Small city EV | £150–£250 |
| Family hatchback EV | £250–£350 |
| Family SUV EV | £300–£500 |
| Premium EV | £450–£700+ |
| Performance/luxury EV | £600–£1,000+ |
These are illustrative ranges, not current quotations. Actual lease prices can change frequently.
The initial rental, mileage, contract length and VAT treatment can also make a significant difference.
Frequently Asked Questions
How much does it cost to lease an EV?
Electric car leases can range from roughly £150 per month for some smaller vehicles to £800 or more for premium models. The actual cost depends on the car, mileage, contract and initial rental.
Is leasing an EV cheaper than buying?
Leasing can reduce the upfront financial commitment and removes the need to sell the car at the end of the agreement. Buying provides ownership. Which is cheaper depends on the vehicle, finance arrangement and how long you keep it.
What is the cheapest EV to lease?
The cheapest EV to lease changes regularly. Smaller electric cars and heavily discounted in-stock vehicles can sometimes offer the lowest monthly rentals.
How much deposit do I need to lease an EV?
Leasing usually involves an initial rental rather than a traditional refundable deposit. The amount varies between offers.
Does EV leasing include insurance?
Normally, no. Insurance is usually arranged and paid for separately.
Does EV leasing include servicing?
Not necessarily. Maintenance can often be added to the lease for an additional cost.
Can I lease an EV through my limited company?
Yes. Limited companies can potentially lease electric cars through business leasing, subject to finance approval.
Can I lease an EV personally?
Yes. Personal leasing is available for eligible private customers.
Is an electric car cheaper to run?
It can be, particularly when charging mainly at home. Actual savings depend on electricity prices, mileage and the vehicle’s efficiency.
What happens when an EV lease ends?
The vehicle is normally returned to the finance company and assessed for mileage and condition.
Final Verdict: How Much Does It Cost to Lease an EV?
So, how much does it cost to lease an EV?
There isn’t one simple answer.
A small electric car could potentially cost around £150–£250 per month, while family EVs may sit around £250–£500, and premium electric vehicles can cost considerably more.
But the monthly rental isn’t the whole story.
To understand the true cost of an EV lease, you need to consider:
Initial rental + monthly payments + insurance + charging + maintenance + mileage + any applicable tax.
For business customers, VAT and Benefit-in-Kind tax can also be important.
For personal customers, the key considerations are usually the total lease cost, mileage, charging and insurance.
If you’re looking for an electric car lease, Car Lease 4 U can help you compare business and personal leasing options and find a vehicle that fits your budget and mileage requirements.
Big on Service. Personal by Choice.
Ready to find your next EV? Get in touch with Car Lease 4 U for a current electric car lease quote.