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Cheapest way to lease an electric vehicle

in Motoring
11 replies 315 views
adidasadidas Forumite
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Hi all

I'm looking to get an electric vehicle to lease. Ideally I want to buy one but after researching it further, the depreciation costs are going to be huge. I worked out for example on a Kia E-niro. I'd end up paying £18k for 3yrs plus interest at 6.9%. I read that by 2027 EVs will be cheaper than petrol vehicles and price equivalence with new petrol vehicles by 2025. So I'm thinking of leasing a different in stock EV to protect against this massive depreciation. The prices are coming up as £350-400 total monthly cost (inclusive of initial payment based on 10k miles) and ideally I'd rather it be around £200-250. 

I looked into buying the MG ZS electric but again the depreciation cost from new sounds huge. Also don't think MG holds it's value very well. The EV is still around £30k. A substantial saving on the e-niro at 35.5k but again it's likely the prices will crash in the near future.

Any ideas about leasing deals?


  • DrEskimoDrEskimo Forumite
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    Where are you getting this notion that all EVs values are going to plummet?

    I'm not saying it's wrong, but you sound very sure and I don't understand how anyone could possibly know? If you look historically, it's been the complete opposite. EVs were cheaper due to low demand and grants, and over the last 5 odd years the prices of things like the Kona, Model 3 and e-Niro have increased substantially, meaning those that bought new back then suffered barely any depreciation whatsoever (even before this inflation to used cars).

    Of course I am not saying that is evidence it will continue, but just curious why you strongly believe it will go the opposite way now?

    PCP predicted values have not been a good indication of real depreciation on EVs for quite some time now....
  • adidasadidas Forumite
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    From reading articles that discuss price parity between EVs and petrol new vehicles. And the likelihood of EVs being cheaper to produce than new petrol vehicles.

    Articles such as
  • ComicGeekComicGeek Forumite
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    So they think that EVs are going to drop in price by 60% between 2020 and 2030, with no impact from global supply issues, inflation etc...

    Do you really think that manufacturers are going to price EVs cheaper than their petrol/diesel equivalents? Of course they won't, as they will promote the other cost savings of having an EV, and always price them higher. Manufacturers may bring out cheaper models with fewer gadgets, but the desire to have a good NCAP rating may dictate this to a point.

    Do you think that EVs are already dropped in price by 25% in the last 2 years, as their graph shows? I don't.

    Given that the organisation's whole aim is trying to promote the benefits of EVs and convince governments that mandating a change to 100% EVs is not a problem, do you really think that they are presenting an unbiased view? Just doesn't make sense - it would be more believable if they showed a small increase in purchase price by 2030, but with this offset by reduced running costs.
  • PetriixPetriix Forumite
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    My MG5 is now worth more than I paid for it new 20 months ago. Expected depreciation has not materialised because supply has been limited by various global factors and demand has vastly exceeded expectations. Given that EV sales are growing exponentially and most models have a wait of over a year, I'm fairly certain that we're some way off seeing the kind of depreciation you're imagining.

    Obviously there are things that can happen to change the current situation, but nothing will change overnight. My feeling is that the longer you wait, the more you'll ultimately pay when you do buy. If you lease then you're gifting money to the finance company as things currently stand.
  • Flight3287462Flight3287462 Forumite
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    I don't understand why you are worried about depreciation and interest rates on a lease car (of course they will impact the final figure).

    With a lease car you pay the monthly charge and hand it back at the end of the term.

    You need interest rates and a guess at depreciation only if you are going to run comparisons on buying it and financing it yourself and the comparing against your lease figure.  Which of course we all do.
  • edited 7 September 2022 at 10:05AM
    Flight3287462Flight3287462 Forumite
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    edited 7 September 2022 at 10:05AM
    This chart will give you a clue on possible battery pricing.

  • HerzlosHerzlos Forumite
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    The lease companies do a lot of research to try and determine residual pricing in order to figure out the leasing rate, so if you're certain the EV prices are going to plummet the leasing companies will have that factored in and you're paying for it anyway.

    In any case, I can see the price of new EV's being similar to that of new ICE vehicles, due to economies of scale and demand, but I can't see EV's depreciating in value any faster than an ICE would.

    If you want to hedge your bets a bit, then maybe buy one with a PCP and if they've depreciated faster than the PCP predicts then you can just hand it back and buy another one.
  • grantdaygrantday Forumite
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    First Post
    I doubt we’ll see a significant drop in EV prices anytime soon. Currently, manufacturers are still dealing with supply chain issues limiting the number of readily available vehicles and increasing delivery times for customers awaiting orders.

    Over time they will become significantly cheaper as new competitively priced models (like the Dacia Spring) appear across manufacturer ranges and as we move towards the 2030 ban on the sale of new ICE vehicles.

    On the used vehicle side, EV prices have held strong; however, ICE vehicle prices have declined over the past four months. I’m also in the market for an EV but have steered clear of used vehicles so far due to concerns over potential out-of-warranty battery issues. Sure, with electric cars, there’s less to go wrong, but when it does go wrong, it could be frighteningly expensive. 
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