How do you compare different providers of electric company car leasing?
Electric commercial vehicle leasing is becoming increasingly popular amongst business owners and fleet managers. The switch to electric driving offers benefits in terms of costs, sustainability and tax incentives, but choosing the right leasing provider isn’t always straightforward. In this article, we answer the most frequently asked questions so that you can make an informed comparison.
Whether you’re looking for a small van, a double-cab commercial van or a fully electric fleet, the right lease arrangement can make a big difference to your monthly costs and business operations. Read on to find out what you need to look out for.
What exactly does electric commercial vehicle leasing involve?
Electric company car leasing is a form of financing that allows you, as a business owner, to use an electric company car without having to buy it outright. You pay a fixed monthly instalment to a leasing provider, who remains the owner of the vehicle. At the end of the contract, you either return the car or, if you wish, buy it.
When leasing a electric company car There are generally two types: operating leases and finance leases. With an operating lease, maintenance, insurance and tyres are often included in the monthly payment. With a finance lease, you pay more yourself, but you build up ownership at the end of the term. Both types are available for electric vehicles, ranging from a compact van to a heavier commercial van.
The main advantage of leasing is that you don’t have to make a large upfront investment. You can start driving a new vehicle straight away and keep your working capital available for other business expenses. What’s more, you know exactly where you stand: fixed monthly costs and no surprises when it comes to major servicing or repairs (with an operational lease).
What types of lease contracts are available for electric company cars?
There are two main types of lease for electric company cars: operational lease and finance lease. With an operational lease, you hire the vehicle for a fixed period as part of an all-inclusive package. With a finance lease, you finance the purchase in instalments over time and become the owner of the vehicle at the end of the term.
Operating lease
An operating lease is the most popular option for businesses that want peace of mind. The monthly payment usually covers maintenance, insurance, road tax and, in some cases, charging card costs. You know exactly what you’re paying each month and don’t bear the residual value risk yourself. At the end of the contract, you return the vehicle and may switch to a newer model.
Finance lease
With a finance lease, you pay a monthly amount towards the purchase price of the vehicle. You are responsible for arranging maintenance and insurance yourself. At the end of the lease term, the company car becomes yours. This may be an attractive option if you need a specific vehicle, such as a modified double-cab van, which you wish to continue using in the long term.
Private leasing for self-employed people
For self-employed people without staff, there is also private leasing, whereby an electric company car is leased for business use via a personal contract. This is a simple way to drive an electric car for business purposes without complex financing arrangements. Please do bear in mind the tax implications, as private leasing has different accounting consequences to business leasing.
What should you look out for when comparing lease providers?
When comparing providers of electric company car leasing, you should consider the total monthly costs, the services included, the contract term and the annual mileage allowance. What seems cheap at first glance does not always mean it is the best deal over the full term of the contract.
When comparing providers, consider the following points side by side:
- Total monthly cost: Add up all the additional costs, including insurance, maintenance and road tax.
- Kilometre allowance: How many kilometres per year are included, and how much does each additional kilometre cost?
- Residual value: Who bears the risk if the car is worth less than expected at the end of the term?
- Charging infrastructure: Does the provider offer support with installing a charging point or a charging card?
- Term and flexibility: Can you amend the contract part-way through if your business grows?
- Service and support: How quickly does the provider respond in the event of a breakdown or if you have any questions?
Always ask for a detailed quote with a full breakdown of costs. Some providers charge administration fees, delivery or return charges that are not immediately apparent in the monthly amount quoted. Always compare the total costs over the entire term, not just the monthly amount.
Please also note the stock levels and delivery times
Electric commercial vehicles – ranging from small vans to heavier electric buses – can sometimes have longer delivery times. Ask the supplier about availability and the expected delivery time. A supplier with its own stock of vehicles can often help you more quickly than one that operates exclusively on a made-to-order basis.
What are the advantages of electric car leasing compared with petrol or diesel?
Leasing an electric car is more cost-effective to run than leasing a comparable petrol or diesel car, as the energy costs per kilometre are significantly lower. You also benefit from a lower additional tax liability, lower road tax and lower maintenance costs thanks to the simpler drive system of an electric motor.
The advantages of leasing electric company cars compared with petrol-powered ones, at a glance:
- Lower fuel costs: Charging is cheaper than filling up with petrol, especially if you charge at home or at work using your own charging point.
- Tax benefits: Electric vehicles are subject to a lower additional tax liability and are eligible for specific tax schemes.
- Less maintenance: An electric motor has no oil, exhaust system or timing belt. This reduces maintenance costs over its lifetime.
- Access to environmental zones: More and more cities are introducing low-emission zones where only zero-emission vehicles are permitted. With an electric company car, you can drive anywhere.
- Sustainable image: Customers and clients are placing increasing value on sustainable business practices. An electric vehicle fleet enhances your reputation.
One point to bear in mind is the driving range. Electric commercial vehicles are ideal for regional and urban use, but for long journeys or heavy loads, it is important to carefully assess the driving range of your chosen model. Choose a vehicle whose range suits your daily routes.
What questions should you ask a leasing provider?
Always ask a leasing provider specific questions about the total costs, the services included, the flexibility of the contract and support with charging infrastructure. By asking the right questions, you can avoid any surprises later on and sign a contract that really suits your business.
Use this list as a guide for your discussion with a provider:
- What is the total monthly amount, including all costs, and what is not included in the package?
- How many kilometres per year are included, and what are the charges if this limit is exceeded?
- Who bears the residual value risk at the end of the contract?
- How are claims settled, and what is the excess?
- Do you offer support with the purchase and installation of a charging point?
- What is the expected delivery time for the vehicle?
- Are there any options for amending the contract part-way through to reflect the growth of my business?
- What is the warranty on the electric vehicle’s battery?
- How do you organise alternative transport when the vehicle is away for servicing?
The answers to these questions will give you a good idea of a provider’s reliability and transparency. A good leasing provider will answer these questions clearly and directly. If you have any doubts about an answer or if anything remains unclear, ask for written confirmation before you sign.
How do you choose the right electric commercial vehicle for your business?
You should choose the right electric commercial vehicle based on your daily charging requirements, driving range, intended use and the number of staff who will be driving it. Start by considering your own working practices as a starting point, and don’t let yourself be guided solely by price or brand.
Decide what you’ll use it for
Buying or leasing a small van is ideal for light goods and urban distribution. If you need more space or regularly carry several people, a double-cab commercial van is a better choice. For healthcare transport or specialised transport, specific models are available, such as wheelchair-accessible vans or electrically powered refrigerated vans.
Calculate the required driving range
Work out how many kilometres you drive on average each day. Electric company cars vary greatly in range, depending on the model and battery capacity. Allow for a margin on cold days, as low temperatures reduce the range. If you drive more than 200 kilometres a day, a model with a larger battery or fast-charging function is a sensible choice.
Consider charging options
Can you charge the vehicle at home, at your business premises or at customers’ premises? The availability of charging infrastructure is a practical prerequisite when choosing to lease an electric vehicle. A provider who helps you arrange a charging point makes the switch a lot easier.
How we can help you with electric commercial vehicle leasing
We have been operating as specialists in commercial vehicles for the Helmond and North Brabant region for over 60 years. Whether you’re looking for a small van, a double-cab commercial van or a fully electric solution, we’d be happy to help you find the right solution. Take a look at our full range of commercial vehicles and find out what we can do for your business:
- Personalised advice on the right vehicle based on your working practices and mileage
- A wide range of electric commercial vehicles, available immediately with no long lead times
- Flexible leasing and purchase options, tailored to your business needs
- Transparent prices with no hidden costs
- Support from consultation through to delivery, including guidance on charging infrastructure
Are you ready to make the switch to electric leasing, or would you simply like to find out what the options are? Get in touch with us and we’ll discuss which electric company car is best suited to your business.
