What is the monthly cost of leasing an electric company car?

Electric company cars are becoming increasingly popular in the Dutch business sector. This is not only because of their lower emissions, but also because leasing an electric company car can be financially attractive due to tax benefits and lower fuel costs. Nevertheless, virtually every business owner wonders: what does leasing an electric company car actually cost per month?

In this article, we answer the most frequently asked questions about leasing electric commercial vehicles. Whether you want to buy or lease a small van, are looking for a double-cab commercial van, or simply want to know whether electric leasing is a viable option for your business: you’ll find clear, straightforward answers here.

What is the average monthly cost of leasing an electric company car?

The average monthly lease payment for an electric commercial vehicle is roughly between 400 and 900 euros per month, depending on the type of vehicle, the lease term and the lease contract chosen. A compact electric van, such as a Renault Kangoo E-Tech or Citroën ë-Berlingo, is generally cheaper to lease than a larger electric double-cab commercial van.

For a small electric van, you’ll pay an average of between 400 and 600 euros a month under an operational lease. Medium-sized electric commercial vehicles, such as a Volkswagen ID. Buzz Cargo or a Ford E-Transit, can easily cost over 600 euros. Heavier models or versions with extra load capacity can cost up to 900 euros or more per month. Please note that these amounts are exclusive of VAT and vary significantly depending on the factors discussed below.

What is included in the monthly lease payment?

With an operational lease, the monthly payment often includes several services, such as maintenance, insurance, road tax and, in some cases, a charging card. With a finance lease, you usually only pay for the financing of the vehicle and are responsible for maintenance and insurance yourself. It is therefore important, when comparing lease prices, to check carefully what is and isn’t included in the package.

What factors determine the monthly lease payment for an electric company car?

The monthly lease payment for an electric company car is determined by several factors: the list price of the vehicle, the term of the contract, the annual mileage, the residual value and the type of lease contract. Together, these factors determine how much you pay each month.

Below is a list of the key factors:

• Catalogue value: A more expensive vehicle means higher monthly costs. Electric company cars often have a higher purchase price than comparable diesel vehicles, which is reflected in the lease price.
• Duration: The longer the term (usually 36, 48 or 60 months), the lower the monthly costs. A shorter term offers greater flexibility, but results in higher monthly payments.
• Annual mileage: Higher annual mileage increases the monthly payment, as the vehicle’s residual value decreases. If you drive more than 30,000 kilometres a year, you’ll notice this straight away in your monthly instalment.
• Residual value: Historically, electric vehicles have had a less predictable residual value. Leasing companies take this into account in their calculations.
• Type of lease agreement: An operational lease is generally more expensive per month, but is an all-inclusive option, whereas a financial lease has lower monthly payments but requires more personal responsibility.
• Brand and model: A double-cab van costs more than a standard van with a load compartment, even when leased.

By carefully weighing up all these factors, you can find a lease contract that suits your driving habits and business operations.

What is the difference between a finance lease and an operating lease for electric company cars?

With a finance lease, you finance the vehicle and become the economic owner, whereas with an operational lease, you hire the vehicle, including services such as maintenance and insurance. A finance lease has lower monthly payments but involves greater personal responsibility. An operational lease is all-inclusive and offers greater peace of mind, but costs more each month.

Finance lease: ownership and responsibility

With a finance lease, you enter into a finance agreement for the electric company car. You pay a monthly instalment and, at the end of the term, you can purchase the vehicle for a pre-agreed residual value. You are responsible for maintenance, repairs and insurance. This makes a finance lease an attractive option if you ultimately wish to own the vehicle or if you already have a reliable maintenance partner.

Operational lease: a comprehensive solution from A to Z

With an operational lease, you hire the vehicle for a fixed period and pay a fixed monthly all-inclusive amount. Maintenance, insurance, road tax and, in some cases, a charging card are included in the price. At the end of the term, you return the vehicle. This is popular with self-employed people and SMEs who want to avoid surprises and keep their costs predictable. You do not build up any ownership, but you also do not run the risk of a decline in residual value.

When it comes to electric company cars, many business owners opt for an operational lease, partly because the technology is evolving rapidly and, at the end of the lease term, you can easily switch to a newer model with a longer range.

What tax benefits apply to leasing an electric company car?

Leasing an electric company car offers several tax benefits. The VAT on the lease costs is deductible for business owners, the additional tax liability for private use is lower than for fossil-fuel vehicles, and electric company cars are exempt from road tax. Taken together, these benefits can significantly reduce the total monthly costs.

The main tax benefits at a glance:

• VAT deduction: As a VAT-registered business, you may deduct the VAT on your lease payments, provided the vehicle is used for business purposes. This makes an immediate difference to your monthly net costs.
• Lower additional tax liability: Fully electric company cars are subject to a lower additional tax liability than diesel vehicles. The exact percentages are adjusted annually by the government, so it is worth checking the current rules with the Tax and Customs Administration.
• Exemption from motor vehicle tax (MRB): Electric vehicles are currently exempt from road tax. Please note: the government plans to phase out this exemption gradually over the coming years.
• Environmental Investment Allowance (MIA): When purchasing or taking out a finance lease on an electric commercial vehicle, you may be eligible for the MIA, which allows you to claim an additional percentage of the investment as a tax deduction.

Always consult a tax adviser or accountant regarding your specific situation, as the regulations change regularly and the benefits depend on your business structure and VAT status.

When is it more cost-effective to buy an electric company car rather than lease one?

Buying is more cost-effective than leasing if you intend to use the vehicle for the long term, have sufficient capital or borrowing capacity, and the total cost of ownership is lower than the sum of all the lease instalments. Leasing is a more attractive option if you value flexibility, peace of mind and a predictable monthly budget more highly than ownership.

When weighing up the options of buying versus leasing, the following situations are relevant:

• Buying is a good option if: if you’ve been using the vehicle for more than five years, you can claim back the full amount of VAT, you have the capital to invest, and you want to arrange maintenance and insurance yourself at low cost.
• Leasing is a good option if: if you want to spread your monthly costs, remain flexible so you can switch to a newer model after three to four years, or if you don’t want to make a large investment in a vehicle whose technology is changing rapidly.

Electric commercial vehicles generally have a higher purchase price than comparable fossil-fuel models. If you’re considering buying a small van rather than leasing one, it’s wise to calculate the total cost of ownership over the desired period of use, including maintenance, insurance, charging costs and any subsidies. Sometimes, a combination of a subsidy and a finance lease makes the purchase more attractive than buying outright.

What should you look out for when choosing an electric company car on a lease?

When choosing an electric company lease car, you should consider the range, charging infrastructure, charging capacity, contract terms and the total monthly costs, including charging. Ensuring the vehicle is well suited to your day-to-day use will help avoid disappointment and unexpected costs.

Here are the key points to bear in mind:

• Range: Check that the stated range matches your daily driving distance. Bear in mind that driving conditions, load and temperature may reduce the actual range.
• Charging options: Do you have the option to charge your vehicle at home or on your business premises? And are there enough public charging points along your regular routes? A charging card is included with many operational lease contracts.
• Payload and bodywork: Choose a vehicle that suits your load. A double-cab commercial van offers more seats but less load space than a standard van. Also bear in mind the maximum authorised mass.
• Contract terms: Take note of the mileage limit, the charges for exceeding it, the notice periods and what happens in the event of damage. Read the contract carefully before signing it.
• Residual value and make: Ideally, choose a make with a proven residual value and a good network of dealers for servicing and repairs.
• Grants and regulations: Check whether you are eligible for subsidy schemes such as the SEBA (Electric Company Cars Subsidy) and keep an eye on the latest tax rules.

Thorough preparation not only saves you money, but also ensures that the electric company car really works for your business.

How we can help you with electric commercial vehicle leasing

At Van den Hurk Commercial Vehicles, we’re happy to help you make the right choice, whether you’re looking for a electric company car whether you want to lease or buy. With over 60 years’ experience in the Helmond and North Brabant region, we know the business market inside out. We offer:

• A wide range of electric commercial vehicles, from small vans to double-cab commercial buses
• Personal advice on finance leases, operating leases and purchase options
• Transparent prices with no hidden costs
• Flexible leasing solutions, tailored to your driving habits, business structure and budget
• A handy stock alert service, so you are the first to know about new offers

Would you like to know how much leasing an electric company car would cost in your situation? Please get in touch with us for a no-obligation chat. We’d be happy to help you find the right solution and ensure you’re driving a vehicle that suits your business, both now and in the future.