Are Electric Cars Cheaper to Lease?

Find out if electric cars are truly cheaper to lease than petrol vehicles.

A Rundown of Electric Cars and Leasing

If you’re new to leasing, here’s a quick overview. Leasing a car means you’re essentially renting it for a fixed period (usually 2 - 4 years) with monthly payments. At the end of the lease, you hand the car back to us at Motorlet, no need to worry about depreciation or resale. You can read more details in our car leasing guide.

With electric vehicles (EVs), leasing is often a smarter option than buying outright. EV technology evolves fast, so leasing lets you upgrade every few years without being stuck with outdated tech.

Are Electric Cars Cheaper to Lease?

The upfront monthly cost of leasing an electric car can sometimes be higher than petrol or diesel models, especially if you're eyeing high-end options like a Tesla. However, once you factor in running costs, incentives, and total cost of ownership, the balance can swing in favour of electric.

Let’s compare the cost breakdown, including monthly lease payments, running costs, incentives and grants, technology and depreciation, business benefits and real-life examples.

1. Monthly Lease Payments: Petrol vs Electric

When comparing models of similar specifications, electric vehicles can have slightly higher lease payments. Why?

· EVs are newer on the market and often have higher retail prices.

· The residual value (what the car is worth at the end of your lease) may be less predictable for new EVs.

But it’s not all bad news - brands are investing more in EV leasing options, and we regularly offer competitive deals on electric cars. Check out our latest electric car lease deals to see what's currently available.

2. Comparing Running Costs

Where EVs really shine is in their day-to-day costs:

· Charging vs Fuel: According to UK Government, charging your EV is significantly cheaper than filling up at the pump - some drivers cut their fuel costs by over 50%.

· Maintenance: With fewer moving parts, EVs generally require less maintenance.

· Tax savings: Electric cars are exempt from road tax and the London Congestion Charge, plus they qualify for Benefit-in-Kind (BiK) tax breaks for business users. Learn more about business leasing benefits.

Many electric car drivers find they’re saving hundreds annually - even with slightly higher monthly payments.

3. Incentives and Grants

While government grants like the Plug-in Car Grant have ended, some local councils still offer incentives such as free parking or charging credits. Plus, businesses benefit from 0% BiK rates on electric vehicles, making them an attractive option for company car drivers.

Electric car driver checks battery charging status app screen in car interior

4. EV Technology and Depreciation

Electric vehicle technology is advancing quickly, and while that’s exciting, it also means owning an EV outright comes with more depreciation risk.

Leasing takes that worry away. You won’t have to deal with selling or being left behind as battery tech improves. That makes leasing electric even more attractive, especially when paired with our EV chargers for home installation.

Do you suffer from EV Range Anxiety?

Many drivers worry about electric range, but modern EVs can go much further than they used to. Plus, the UK’s charging infrastructure is growing every month. Learn more about this in our guide to EV range anxiety.

5. Is Personal or Business Leasing More Beneficial?

Electric car leasing is popular with both private drivers and businesses. But business users enjoy extra perks:

· 0% Benefit-in-Kind tax (BiK)

· VAT reclaim opportunities

· Lower National Insurance contributions

Want to save your business money? Head over to our business leasing page and view our current available range.

6. Backed Up by Real-World Examples

Let’s take a real-world example. A Tesla Model 3 lease may cost more upfront than a similarly specked BMW 3 Series petrol. But:

· You’ll spend far less on fuel.

· Tesla maintenance is simpler (no oil changes or engine work).

· You’ll pay no road tax.

Over three years, the difference can balance out - or even favour the EV, plus you’ll be doing your bit for the planet. You can explore our Tesla leasing options to compare for yourself.

So, Are Electric Cars Cheaper to Lease?

In short, they can be. While lease payments may start slightly higher, the lower running costs, tax perks, and zero-fuss returns often make electric cars the smarter choice in the long run.

Woman charging electric car in driveway outside house

Why Lease Your EV with Motorlet

At Motorlet, we make leasing your next car simple, hassle-free, and flexible. We’re a team of passionate car lovers who pride ourselves on top-rated service and honest advice, not pushy sales tactics. Leasing with us will include:

Free UK mainland delivery
Road tax
Expert advice tailored to your needs
Access to the latest electric car lease deals

Read more about our approach on the About Us page and see why our customers keep coming back.

Ready to Make the Switch?

Whether you’re ready to lease an electric car today or still weighing your options, our team is here to help. Check out our electric leasing deals, read our how to get the best car lease deal guide, or get in touch for personalised support.

EV lease payments can be slightly higher, but lower running costs often offset this.

You’ll save on fuel, tax, and maintenance with an electric lease car.
Leasing protects you from EV depreciation and lets you keep up with evolving technology.
Business users benefit from excellent tax incentives.
Motorlet offers tailored deals, expert advice, and flexible leasing options for all types of drivers.

Explore the smarter, cleaner, and often cheaper way to drive - lease your next electric car with Motorlet.

Frequently Asked Questions

Are electric cars always cheaper to lease than petrol or diesel cars?

Not necessarily. While EVs often have lower running costs, the lease price depends on the model, demand, and available deals. Some EVs lease at a great rate, but others may cost more than petrol or diesel alternatives.

What makes leasing an EV more cost-effective?

Leasing an EV can be cost-effective because you avoid depreciation, road tax is included, and you can add maintenance packages. Plus, EVs generally have lower charging costs compared to fuel expenses.

Is it cheaper to lease an EV than to buy one outright?

In the short term, leasing often has lower upfront and monthly costs. However, if you plan to keep the car for a long time, buying could work out cheaper as you won’t have ongoing payments after it’s paid off.

Do electric cars have lower insurance costs?

It depends on the model. Some EVs are cheaper to insure due to fewer mechanical parts and lower accident rates, but others can be more expensive due to high repair costs and specialist parts.

What happens at the end of an EV lease?

At the end of the lease, you return the car. You can then either lease a new EV, extend your current lease, or look into buying an EV outright. Unlike buying, you don’t have to worry about selling or depreciation.

Check out our EV deals

Spread the word

What's next?

Enjoyed this? Read our latest news

Hyggemarketing: Reliable Nationwide Travel for a Growing Agency

Jack Vernon, CEO of Hyggemarketing, shares how his VW Caddy lease from Motorlet transformed his travel experience—bringing comfort, professionalism, and room for his beloved Akita, Orla.

John Worth Group: A Seamless Fleet Leasing Experience with Motorlet

John Worth Group, a renowned interiors specialist, partnered with Motorlet to streamline their management vehicle fleet. Over two years, they've experienced professional service, timely deliveries, and competitive pricing, reinforcing their trust in Motorlet's leasing solutions.

Business Lease Success for ECF

Ryan at ECF wanted a specific Audi e-Tron GT with options — and we were the only leasing company that could deliver it, under budget, with expert BIK guidance.