Is Electric Vehicle Leasing Really Cheaper Than Petrol or Hybrid? (UK Guide)

When considering your next vehicle, one of the biggest questions is whether an electric vehicle (EV) is actually cheaper than a petrol or hybrid alternative.

While headline lease rentals are important, they only tell part of the story. Running costs, maintenance requirements, taxation and fuel or charging expenses can all affect the overall cost of driving a vehicle.

In this guide, we'll explore the key differences between electric, petrol and hybrid vehicles to help you determine which option may offer the best value for your circumstances.

Understanding the Total Cost of Driving

When comparing vehicle options, it's important to look beyond the monthly payment.

The total cost of driving can include:

• Monthly lease rentals
• Fuel or electricity costs
• Vehicle servicing and maintenance
• Insurance
• Vehicle Excise Duty (road tax) where applicable
• Business taxation considerations

A vehicle with a slightly higher monthly payment may sometimes be cheaper overall if its running costs are significantly lower.

Are Electric Vehicles Cheaper to Fuel?

For many drivers, charging an electric vehicle can be considerably cheaper than filling a petrol or diesel vehicle.

Drivers who charge at home and benefit from off-peak electricity tariffs may see significant savings compared to traditional fuel costs.

However, charging costs can vary depending on:

• Your electricity tariff
• Whether you charge at home or in public
• The charging speed used
• The vehicle's efficiency

For drivers covering higher annual mileages, these savings can add up over time.

How Do Hybrid Vehicles Compare?

Hybrid vehicles sit somewhere between petrol and fully electric vehicles.

A hybrid combines a traditional combustion engine with an electric motor and battery. This can improve fuel economy, particularly during town and city driving.

Benefits of hybrid vehicles can include:

• Lower fuel consumption than petrol-only vehicles
• No requirement to rely entirely on public charging infrastructure
• Reduced emissions compared to many petrol vehicles

However, hybrids still require fuel and generally do not offer the same running cost savings as a fully electric vehicle.

What About Vehicle Maintenance?

Electric vehicles have fewer moving parts than petrol or diesel vehicles.

For example, EVs do not require:

• Oil changes
• Exhaust systems
• Timing belts
• Many of the components associated with traditional engines

As a result, servicing and maintenance costs can often be lower over the vehicle's lifetime.

That said, all vehicles still require regular maintenance, including tyres, brakes and routine inspections.

Are Electric Vehicles Better for Business Users?

Electric vehicle leasing remains particularly attractive for many businesses.

One of the biggest advantages has been the favourable Benefit-in-Kind (BiK) tax rates available on qualifying electric company vehicles.

This can lead to significant savings for company car drivers compared with petrol and diesel alternatives.

Many businesses also appreciate:

• Lower running costs
• Reduced emissions
• Access to the latest vehicle technology
• Support for sustainability goals

Every business is different, so it's always worth considering your specific requirements before making a decision.

What About Vehicle Range?

Vehicle range is often one of the first concerns raised by drivers considering an EV.

Fortunately, battery technology and charging infrastructure have improved significantly in recent years.

Many modern electric vehicles are capable of travelling hundreds of miles on a single charge, making them suitable for a wide range of personal and business use cases.

However, drivers who regularly undertake long-distance journeys may still wish to compare charging availability and journey planning requirements against petrol or hybrid alternatives.

Is Electric Vehicle Leasing Always Cheaper?

Not necessarily.

The answer depends on several factors, including:

• Annual mileage
• Charging access
• Energy prices
• Vehicle choice
• Personal or business use
• Available lease offers

For some drivers, a petrol or hybrid vehicle may still represent the most practical solution. For others, an electric vehicle may deliver significant savings over the term of the lease.

The key is to consider the overall package rather than focusing solely on the monthly rental.

Which Option Is Best for You?

An electric vehicle may suit you if:

• You have access to home or workplace charging
• You want lower day-to-day running costs
• You cover regular mileage
• You are looking to reduce emissions

A hybrid vehicle may suit you if:

• You want improved fuel economy
• You are not ready to move fully electric
• You regularly drive both urban and longer-distance routes

A petrol vehicle may suit you if:

• You have limited access to charging facilities
• You regularly undertake unpredictable long-distance journeys
• You prefer a more traditional driving experience

How Leasing Pro Can Help

At Leasing Pro, we help customers compare a wide range of vehicle options to find the right solution for their requirements.

Whether you're considering an electric vehicle, hybrid or petrol model, our team can help explain the differences and identify suitable lease options based on your mileage, budget and driving habits.

You may also find our previous guides helpful:

• Leasing vs PCP vs Hire Purchase: What's the Difference?
• What Mileage Should I Choose When Leasing a Car or Van?
• What Happens at the End of a Lease Vehicle Agreement?

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Speak to the Leasing Pro Team

If you'd like advice on your next vehicle or would like to explore available lease offers, our team is always happy to help.

Get in touch with the Leasing Pro team to explore specs, availability or tailored quotes.

✉ enquiries@leasingpro.co.uk

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Author:
The Leasing Pro Team