The used cars that lose you the most money: Electric vehicles dominate the list of the biggest price fallers – another reason to start car leasing?
The used cars that are falling most in value compared to a year ago have been revealed – and the list makes for painful reading if you own an electric vehicle.
Five of the top six second-hand depreciators are battery electric models, some of which have fallen in price by as much as a fifth in the last 12 months.
Why buy a used/ new electric car which depreciates in value when you can simply lease it?
Top 5 used car price fallers
Five of the top six depreciating models are electric – here are the motors with the largest declines.
1. Jaguar I-Pace – Jaguar’s only electric model is the biggest price faller among used cars. Average advertised prices are down 21.8% on this time last year
2. Volkswagen ID.3 – The VW.3 is still relatively expensive for a used medium-sized hatchback, but this EV has dropped in value dramatically in the last 12 months (17.2%)
2. Tesla Model 3 – Tesla’s decision to slash new car prices earlier this year has taken a toll on used values – even for its most popular vehicle, the Model 3. The average used price for this compact family saloon is down 17.1 per cent compared to a year ago, down to £35,603.
4. Audi e-tron – Audi’s e-tron electric SUV might have declined 16% in value in the last 12 months, but the average used example listed for sale is still priced high at over £47,000
5. Hyundai ix35 – Some SUVs are definitely seeing a dip in demand on the used market. This is true of Hyundai’s ix35, which has fallen by 13.4% in the last 12 months.
What are the benefits of leasing?
Avoid depreciation costs Avoid deprecation costs if you were to buy the vehicle. This lowers the risk of owning a depreciating asset.
No MOT required & Road tax included New cars do not need a MOT in the first three years of their life. Road Tax included as part of your lease agreement free of charge.
Warranty protection Manufacturer’s warranty is included with your lease deals free of charge. Most leases let you drop your car off at the garage for no extra cost if something goes wrong.
Lower maintenance costs Much lower maintenance costs – breakdown cover often comes as part of the package (covered under manufactured warranty), servicing sometimes too if you included a maintenance package as part of the agreement.
Cheap and hassle-free You can drive a brand new car every few years which you never thought you could afford. Once the contract lease period finishes on your lease agreement you can get another brand new car – simple and hassle-free. There’s also no hefty financial loan to buy the car.
Fixed monthly payment and flexible initial payment Fixed monthly payments, which are cheaper than buying a car on finance (PCP). You can also choose how much you want to pay upfront (normally 1, 3, 6, 9 or 12 months initial payment).
Contract length of your choice You can choose how long you want the car for – contracts lengths are normally 2, 3 or 4 years.
Online applications You can enquire or call to get a quote in minutes, then the leasing provider will be in touch to go through a quick credit check.
Free Delivery Vehicles can be delivered straight to your home free of charge (mainland UK).
Find car leasing deals with AutoLease.Compare
If you’re looking to avoid the cost of buying a depreciating asset (a new or used car), then car leasing will be a suitable solution for you.
The Top 10 Cheapest Electric Cars to Lease in the UK
Electric cars are great for the environment and they offer lower running costs than your average petrol/diesel car. However, they are usually a tad bit pricier than their fossil-fuel-powered counterparts. So, to save you some money, the following is a list of the 10 cheapest electric cars to lease in the UK.
And yes, most of them are hatchbacks.
Benefits of Electric Cars
There are countless benefits of electric vehicles. The major ones are the following:
Lower fuel costs: That’s right, if you get yourself an EV, you’ll save thousands of pounds annually that would’ve been used on petrol.
Cheaper maintenance: These cars don’t come with the maintenance needs that an IC engine has, so apart from regular tire rotations, scheduled maintenance shouldn’t be stressful.
Environmentally friendlier: You can expect about zero carbon emissions from these cars and so they are effective in combatting climate change.
Higher performance: Because these vehicles come with electric motors which can generate power more easily, EVs often are often quicker than their petrol-powered counterparts.
Quietness: Electric vehicles don’t contribute to noise pollution as they don’t generate any significant noise.
Why you should go for EV Car Lease Deals
Now, while all of the points above make electric vehicles sound like a pretty good decision, there is a reason why many refrain from getting them; they’re priced higher. The way to counter this is to go for the cheapest electric vehicle lease deals.
Sure, you may be paying slightly more per month for the lease as compared to a similar petrol- or diesel-powered vehicle. However, the thousands of pounds that you’ll save in running costs yearly, will significantly outweigh the extra bit that you have to pay monthly.
The Top 10 Cheapest Electric Car Lease Offers Today
Using our Electric Car Lease Comparison, we have identified the cheapest EV car lease deals on the market:
1. Citroen Ami (from £155.09 p/m) The Citroen Ami tops this list and it is more of a quadricycle than a car. This French two-seater is built just for going from A to B, and it has the cheapest electric car lease deals in the country. Despite being very compact, the Ami is still a good solution to your needs as it can deliver up to 46 miles of range.
2.Volkswagen Up! (from £242.59 p/m) The VW Up has been at the forefront of the compact hatchback scene in Europe for many years now. It is known for being economical to buy and run, and small enough to be maneuverable, yet practical. The well-priced VW e-Up takes efficiency to a whole new level, with its range of up to 160 miles.
The UK’s very own Vauxhall Corsa is also available on some of the cheapest electric vehicle lease deals today. The Corsa EV is a hot hatch that can deliver a range of up to 222 miles when you charge it fully. As a result, you’ll be getting a fast car with a lot of functionality.
If you’re looking for a car that is a fashion statement and isn’t a financial burden when you lease it, get the Smart ForFour. It is super quirky and fun to drive, plus it can be personalized to quite an extent. It features Mercedes’s high build quality and it can deliver a range of up to 81 miles.
5. Fiat 500 (from £272.71 p/m) The Fiat 500 may look like it hasn’t been changed for half a century, but it is still more modern than ever. Its EV continues to offer a thrilling driving experience, but with clean green energy powering it. Its lease deals will also go easy on your wallet, along with the running costs from its 199-mile-range.
6. Smart ForTwo Coupe (from £273.32 p/m) The Smart ForTwo is the OG vehicle that made the Smart brand what it is today. It is now solely available as an EV and is as stylish as ever, while also offering up to 83 miles of range on a full charge. This car is also offered on the most inexpensive electric lease deals on the market.
7. Mazda MX-30 (from £275.59 p/m) This is one of the two electric SUV lease deals on this list. The MX-30 is one of the best small SUVs in the market today. Despite its small size, it is roomy enough on the inside. It comes with a lot of storage, many standard amenities and safety features, and an electric powertrain good for 100 miles of range.
8. Kia Niro (from £277.09 p/m) The Kia Niro EV is one of the most popular small SUVs in the industry. Yes, it has Kia’s superb sense of quality and usefulness, but its real highlight is its all-electric range of 239 miles. You’ll also be glad to know that you can lease this car for a reasonable monthly payment.
9. Renault Zoe (from £277.70 p/m) All the vehicles on this list provide a lot of value, and the Renault Zoe is no different. It gets you up to 238 miles when completely charged, along with its striking looks, and a lot of room for the occupants and storage. This is also one of the most inexpensive EV car lease deals today.
10. Nissan LEAF (from £283.86 p/m) Here’s a vehicle that has represented the electric car category for a very long time. The Nissan Leaf continues to be a sought-out EV because of how efficient (212-mile range) and handy it is. It is an extraordinary car for regular people and it can be leased without any major financial troubles.
Honourable Mention: MG MOTOR UK ZS (from £286.25 p/m) The MG ZS is another cheap electric SUV lease option that is lauded for being an all-rounder. It also gets you the highest range among all the other cars mentioned here, at 273 miles.
Types of Electric Lease Deals
Whether it is an electric car business lease, or a personal lease deal, you’ll come across the following options:
HEV or Hybrid Lease Deals
These are vehicles that feature one or more electric motors and a battery pack, working alongside the petrol engine. They’re more efficient than your traditional petrol-powered vehicle as they have a combined range. They’re the most cost-effective option as far as EV lease deals are concerned.
PHEV or Plugin Hybrid Leasing
If a hybrid vehicle isn’t quite efficient enough for you, a plug-in hybrid should do just fine. These are vehicles that feature a similar powertrain to your traditional hybrid, but you can utilize a separate, all-electric range alongside the combined one. There are all sorts of great PHEV car lease deals available.
BEV or EV Lease Deals
Finally, we have the all-electric cars, which have been exclusively ranked on this list. These showcase the pinnacle of engineering in the automotive industry today. They’re the most efficient and nature-friendly vehicles on the planet today and there are many cheap electric vehicle lease deals to go around.
Electric Car Lease Comparison – EV Car Leasing Special Offers – Auto Lease Compare
Can’t decide on the perfect EV lease deal? Auto Lease Compare makes the selection process a lot easier with our Electric Car Lease Comparison. Once you’ve picked a car, we’ll show you what the best leasing options are for it. Hence, you will be able to get lower monthly payments which can save you thousands. Check out our EV car lease deals here.
To know more about why leasing is a better option than buying, click here.
Electric Vehicle Leasing
New research suggests that leasing a battery electric vehicle (BEV) is 19% cheaper than financing a new vehicle on personal contract purchase (PCP).
Auto Lease Compare analysed pricing data for its 10 most popular BEVs and found that leasing was the most cost-effective option on 9/10 vehicles.
Kaz Datoo co-founder of Auto Lease Compare said: “one of the most important factors the industry faces with EVs, is making them affordable to the average consumer – this is where leasing comes in. Without affordable options, the market won’t move over to electric vehicles at the pace required. Luckily, with our Car Leasing Comparison platform, consumers can find the most competitive deals on the market, saving them money. Leasing (PCH) is a the most cost-efficient way to drive a brand-new EV.”
Auto Lease Compare’s Electric Vehicle Leasing Research
Auto Lease Compare’s analysis shows that the Tesla Model 3 when leased over four years, the total cost comes in at £25,632.75. Compare that against PCP with cost of £30,385. Leasing will save drivers approximately 18.5% over the life of the contract.
The largest saving overall was found when comparing costs for an Audi E-Tron. On PCP, the Audi has a total cost of £43,410 at the end of a 48-month contract. Leasing the same make and model comes in at a total cost of £34,388 A whopping total saving of £9,022 (a huge 20.5% discount!).
If you’ve been looking for a new car and have noticed that some of the lead times are a lot longer than usual, then it may be due to the global chip shortage!
Carmakers around the world have been hit by a shortage of semiconductors caused by COVID-19 supply-chain disruptions as well as soaring semiconductor demand at consumer electronic companies (semiconductor chips are a critical part of every electronics product).
Many carmakers cancelled their chip orders expecting lower demand over the pandemic. However, they did not anticipate the huge bounce back, which then sent the global chip supply into a downward spiral. The chip suppliers merely could not keep up with the ramped-up demand from carmakers as well as the continuously increasing demand in other electronic products.
This essentially, caused (and is causing) an increase in lead time for brand new vehicles.
Will the chip shortage ease in later in 2022?
German carmaker Volkswagen expects a continued hit from a shortage of semiconductors this year, although it should be able to ramp up production in the second half of the year, Chief Executive Herbert Diess said on Wednesday.
“The supply situation is getting better, but even in 2022 we will not be able to build all the cars we could sell. But we see opportunities for further production increases, especially in the second half of the year,” Diess said in a speech.
So, our outlook is, car manufacturers are struggling and factory orders are certainly seeing delays – this probably won’t end until the second half of 2022. Don’t stress though – if you’re in a rush for a new vehicle, there are plenty of great lease deals in stock now for quick delivery! Your vehicle can be delivered to you (free delivery UK mainland) as early as 2 – 4 weeks (if in stock).
A factory order deal (not in stock) vehicle will be manufactured to your customised specifications. Given the current manufacturing delays for new cars, (due to the chip shortage) this could be anywhere from 2 -12 months.
Please confirm with the leasing company when you enquire the expected delivery date so you have all the information before you place an order.
You can send an enquiry with your contact details by clicking ‘Enquire Today’ or ‘Call for Quote’ and they will be in touch to discuss the details.
The UK government has slashed grants for electric car buyers, to the dismay of the automotive industry as it tries to shift away from petrol/ diesel fuels.
The maximum grant for electric cars has been reduced to £2,500 from £3,000 with immediate effect on Thursday 18.03.21. The government has also lowered the price cap for cars eligible for the subsidy from £50,000 to £35,000.
The cut is likely to be contentious, only a few weeks after the chancellor, Rishi Sunak, extended a subsidy for petrol and diesel car drivers by freezing fuel duty.
In general, electric cars cost more than those with petrol/ diesel engines but are seen as a critical part of meeting the UK’s decarbonisation goals.
The UK government said it wanted to target help at people less able to afford electric cars, rather than wealthier buyers of premium vehicles.
Essentially, this means the government has increased the cost of an electric car, which produces zero carbon dioxide exhaust emissions, at the same time as keeping down the costs of burning petrol and diesel – slightly contradictory.
The transport minister Rachel Maclean said the government wanted “as many people as possible to be able to switch to electric vehicles”, but flagged rising costs. “While the level of funding remains as high as ever, given soaring demand, we are refocusing our vehicle grants on the more affordable zero-emission vehicles, where most consumers will be looking and where taxpayers’ money will make more of a difference,” she said.
The car industry criticised this initiative, as the government has cut the support for electric cars by £1,000 in just over a year. In the March 2020 budget they cut the grant from £3,500 to £3,000 and introduced the £50,000 eligibility cap. When the support was first introduced in 2011, it was worth up to £4,500 per car.
Leasing an electric car will still be cheaper than buying outright or through PCP (Personal Contract Purchase) finance, however drivers may see a slight increase on the monthly charge for vehicles above the threshold stated above.
The EV on sale in the UK with the longest range is the Tesla Model S.
With an impressive 379-mile range of the Long Range 100kW option, which can accelerate from 0 to 60mph in 3.7 seconds (2.7 seconds if you choose the Model S Performance) but does cost north of £75,000 (to buy) – however you can lease one from £700 + initial payment.
By late 2021, customers can buy the new tri-motor Model S Plaid. This comes with an eye-popping £131,000 price tag but has an ‘estimated range’ of more than 520 miles, can accelerate from 0-to-62mph in less than 2 seconds and has a top speed of a whopping 200mph!
Government and electric cars:
The Department for Transport said it will be considering the proposal to install public charge points at popular destinations and painting green parking spaces to show they are reserved for EVs – following the introduction of green number plates for battery cars this autumn. The DfT has pledged £12million to boost research and development of EV technologies.
Highways England has also pumped £9.3million to a scheme that will allow businesses to try electric cars and vans for two months for free before deciding to invest in them.
Considering an electric car? The Polestar 2 is an electric family car on the market!
Polestar 2 is the first model from the Volvo sub brand Polestar
The swanky family car is taking on Tesla’s Model 3, with a zero-emission driving range of 292 miles
Acceleration is 0-to-62mph in 4.7 seconds and a top speed of 127mph
It’s on sale now priced at £49,900 and available to lease starting from only 400 p/m
“We have seen very keen interest in Polestar 2 since revealing it earlier this year. By confirming European pricing, we show the outstanding value this high specification vehicle represents,” said Thomas Ingenlath, chief executive officer of Polestar.
The bosses at Polestar have promised that the Polestar 2 electric vehicle will match electric performance with high levels of safety, something which you’d expect from a Volvo sub-brand.
Protecting the battery pack during a collision will be key to this – it will be enclosed in an aluminium case and fully housed within the floor structure. In the event of a crash, the battery pack is automatically disconnected from the rest of the vehicle to ensure there is no live connection. There will be a full suite of advanced driver assistance and crash avoidance features.
“Safety is of paramount importance for Polestar,” said Thomas Ingenlath, chief executive officer of Polestar.
“We are directly linked to Volvo Cars and with that comes their famous reputation for outstanding safety technology. So of course, Polestar cars are designed to be amongst the safest in the world and we are really proud of that.”
The Polestar 2 aims to bring electric performance cars to a broader and increasing audience.
The 300 kW all-wheel drive car has a large 78 kWh battery pack which offers a dynamic drive as well as a range of 292 miles.
Performance wise it delivers 408hp and 660 Nm torque, with a 0-62mph time of 4.7.
Charging up to 80 per cent on a high energy DC current takes 40 minutes, though less powerful methods take longer.
The Polestar 2 is the first car to feature and Android operating system with Google Assist on board and accessible either through voice activation or a large 11-inch touch-screen which is on the centre console.
Maximilian Missoni, head of design at Polestar, said: “We decided to bring something different to the segment. Our avant-garde design has evolved from Polestar 1 into an edgier, bolder statement.”
Like Tesla, Polestar 2 is selling its car mainly online but also with a network of ‘Polestar Spaces’ – like an Apple Store, however most will buy through personal leasing as it’s the most sensible and cheapest method of driving a brand new electric car.
Fiat is the latest car manufacturer to bring an electric model to the market, it comes in the shape of a classic 500.
The third-generation 500 will only be sold as an EV with a battery range of almost 200 miles and a top speed of 93mph!
It’s not cheap though. Top of the range examples will hit the UK market first, and even with the help of the Government’s £3,500 subsidy will cost £29,000 – but this might not be extended beyond March 2020 and this electric model won’t launch until 2021.
This also makes it well over twice the price of petrol model currently on sale. You can pick up a 1.2-litre Pop for £12,165, a huge jump in price one might say.
Powering the new electric car is a 42kWh lithium-ion battery pack and in official tests, it can be driven for 199 miles between charges. This figure is likely to be less in the real world but it is still commendable given the 500’s dinky dimensions and limited battery space. The Fiat uses a single electric motor generating 117bhp which is sent to the front wheels to deliver a decent performance.
Accelerating to 0- 62mph takes 9 seconds and the top speed is limited to 93mph. At speeds that high, expect the battery power to deplete at a far quicker rate!
Electric vehicles (EV) are the answer! Boris Johnson recently announced that the ban on selling new petrol or diesel cars would be brought forward by 5 years. The ban was initially planned to come in effect in 2040, but this has now been brought forward to 2035, and this may also be brought forward further to 2032. The reason behind doing so is the growing concern surrounding climate change. This has caused a mass uproar by car manufacturers who now have to accelerate their plans to become compliant with this new law and will have to invest more resources in creating acceptable products to hit the market in time.
The stats reveal that EVs only made up of 1.6% of all cars within the UK last year and a it change in thinking as well as infrastructure is required if EVs are to become mainstream.
So, what does that mean for you as s consumer? In a decade will you be behind the wheel of an electric car? Well according to a recent study the average depreciation rate over three years for EVs is 56.6% versus 38.2% for the current petrol/diesel vehicles.
There is also uncertainty in the industry surrounding the long term depreciation value of all electric vehicles, as the technology is advancing every year, making previous technology redundant. In general, electric cars need its batteries replacing every 6 – 8 years which can cost up to £20,000 with installation fees and other specific components which need replacing.
It’s another reason to lease – not having the burden of owning a depreciating asset requiring expensive battery replacements, with the future value of the vehicle undetermined.
Ever worried about the batteries in electric cars? Won’t be able to find a charging station and moment you need it?
Worry no more as VW will launch mobile charging stations that can add some juice to your electric car battery in just 17 minutes.
Volkswagen has announced plans to trail new portable EV charging stations in their home town, Wolfsburg, over the next 6 months with the view to expand across German cities in 2020.
The German manufacture offered a sneak peek into their vision earlier this year which entails mobile charging stations being delivered directly to electric cars in need of power. These mobile stations could help to encourage ownership of electric cars within “big” cities with charging stations located all around.
The design, showcased by VW’s own art work, previews the station charging an e-Golf to which it claims will only take 17 minutes to reach 80% capacity. The charging station will have the capacity to charge 4 vehicles at any one time with the station being able to charge 15 e-Golfs before its power needs to be replenished.
The mobile quality of these charging stations means they are independent of a power source allowing them to be stationed in any number of locations and according to VW “the charging station furthermore allows the temporary storage of sustainably generated power, such as solar or wind energy – and therefore CO2-neutral mobility”.
Alternatively, the station can be connected to a permanent standard grid connection which will constantly recharge the station via an alternating current that mitigates the strain on the power supply during peak periods.
VW plans on spending a further $2 billion over the next few years building up a global EV charging infrastructure to enhance the ownership of electric cars, the drive to renewable energy and also to compete with Tesla’s Supercharger network.
Users will be able to locate the nearest mobile charging station via an app or website, yet to be announced by VW. For more information, find the official press release from VW here.
Would you like to see these being trailed in the UK? Is it a good idea? Let us know your thoughts below…
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