10 Reasons You Should Consider Leasing an Electric Car
Image source: Shutterstock
Car leasing versus buying has always been a hot topic, but when it comes to electric cars, the rules are different. Rapidly improving technology, unique tax advantages, and the rise of salary sacrifice mean that in 2026, leasing an electric car often makes far more sense than owning one outright.
Electric vehicles evolve much faster than petrol or diesel cars ever did. Battery ranges improve every year, charging speeds continue to increase, and software updates can transform how a car feels long after delivery. At the same time, depreciation in the first few years remains significant, and long-term ownership brings more uncertainty than many drivers expect.
That’s why leasing has become the go-to option for many people going electric. And when leasing is combined with The Electric Car Scheme, the advantages are amplified even further. Salary sacrifice allows you to pay for your car before tax, cutting monthly costs by 20–50%, removing the need for a deposit, and bundling everything into one simple, predictable monthly amount.
If you’re asking yourself, “Should I lease or buy an electric car?” or “Is EV leasing really worth it?”, you’re in the right place!
Why Is Leasing Financially Smarter For Electric Cars?
Electric cars behave very differently from traditional cars when it comes to cost, tax, and long-term value. Leasing aligns far better with these realities, particularly when salary sacrifice is involved.
Reason #1: Zero Upfront Costs Through Salary Sacrifice
High upfront costs still put many people off electric cars. Personal leases usually require a large initial payment, while buying outright ties up tens of thousands of pounds.
With The Electric Car Scheme, no deposit is required!
Typical personal EV lease deposit: £5,000–£10,000
Traditional lease deposit: £3,000–£8,000
The Electric Car Scheme salary sacrifice: £0 upfront
This means no hit to your savings, no need to delay switching to electric, and immediate access to better-equipped, higher-range models.
For example, a £50,000 electric car on a personal lease might need £6,000 upfront and £550 per month. Through salary sacrifice, the same car could be £0 upfront and around £330 per month for a 40% taxpayer. That’s a first-year saving of roughly £8,640!
Reason #2: 20–50% Lower Monthly Costs Vs Personal Leasing
Salary sacrifice makes electric car leasing more affordable. Because payments come out of your gross salary, you save income tax and National Insurance on the amount you sacrifice.
£500 personal lease = around £625 gross for a 40% taxpayer
£500 salary sacrifice = closer to £300 net
That’s a saving of around £200 every month, or £7,200 over three years, for the same car.
Reason #3: All-Inclusive Package With No Hidden Costs
Most personal leases only cover the vehicle itself. Everything else is extra - and those extras can add up quickly!
Typical annual costs outside a personal lease:
Insurance: ~£1,200
Maintenance and servicing: ~£800
Breakdown cover: ~£150
Tyres: £400–£600 every few years
Image source: Shutterstock
With The Electric Car Scheme, all of this is included:
Vehicle lease
Tyre replacement
Breakdown cover
Access to The Charge Scheme
That’s over £2,150 per year wrapped into one predictable monthly cost!
Reason #4: Avoid Depreciation Risk
Electric cars typically lose 40–50% of their value in the first three years. Improvements in battery technology and range only accelerate this.
If you buy, you carry that risk. If you lease, you don’t.
For example, you could buy a £50,000 EV and sell it after three years for £25,000–£30,000. That’s £20,000–£25,000 lost. Lease the same car and hand it back at the end. The finance company absorbs the depreciation, not you.
Reason #5: Exceptional Tax Efficiency In 2026
Electric company cars remain one of the most tax-efficient benefits available.
Benefit-in-Kind rate for EVs in 2026: 4% (rising in April 2026, but still extremely low)
Income tax on salary: 20-45%
Take an example of a £6,000 annual car cost:
Taken as salary: you’d need £10,909 gross (45% taxpayer)
Through The Electric Car Scheme: £6,000 gross + around £240 BiK
That’s a saving of £4,669 every year!
What Practical Advantages Does Leasing Offer?
Beyond the numbers, leasing also makes day-to-day electric car ownership easier and more flexible.
Reason #6: Stay In The Latest Technology
Electric car technology moves fast.
Average range in 2021: ~200 miles
Average range in 2024: ~280 miles
Average range in 2026: 300+ miles
That’s roughly a 40% improvement in five years. A three-year lease means you’re never stuck driving outdated technology while newer, more capable models are on the road.
Reason #7: No Battery Degradation Concerns
Battery degradation is often misunderstood.
Typical EV batteries lose 5–10% over 8 years
Over a 3-4 year lease, degradation is usually just 2–3%
Leasing keeps you within a full manufacturer warranty and means you never face the cost or hassle of battery replacement, which can exceed £7,000 on older models.
Reason #8: Flexibility To Change Vehicles
Life changes, and leasing adapts with you.
Growing family? Move to a larger EV.
Commute changes? Choose a different range.
Want to try a new brand? No problem.
At the end of your lease, you can return the car, upgrade, or extend, without the stress of selling.
Reason #9: Predictable Monthly Budgeting
With The Electric Car Scheme, one monthly figure covers almost everything. No insurance renewals, no unexpected servicing bills, and usually no MOTs during the lease term. Many drivers find this predictability just as valuable as the financial savings.
A typical premium EV through The Electric Car Scheme might cost £320–£410 per month net, fully inclusive. You can see how much you could save by using our quote tool!
Reason #10: Hassle-Free End Of Lease
Selling a car privately can take 20+ hours of admin, viewings, and negotiation. Leasing removes all of that. You hand the car back and decide what you’d like to drive next.
What Makes The Electric Car Scheme Better Than Personal Leasing?
Leasing alone offers clear advantages. Leasing through The Electric Car Scheme builds on those benefits with additional tax efficiency, protection, and simplicity.
Tax-Efficient Structure
Salary sacrifice means you pay from your gross salary and benefit from low EV BiK rates (set at 4% from April). Employers save 13.8% National Insurance, too, creating shared value.
Complete Employer Protection
One historic concern with salary sacrifice was early termination. The Electric Car Scheme removes that risk entirely. If you leave your job, take extended leave, or your circumstances change, protection is built in from day one - making the scheme risk-free for employers.
Image source: Shutterstock
Zero Employer Cost
Employers don’t pay to offer The Electric Car Scheme. In fact, they usually save £200+ per employee per year in National Insurance, while improving recruitment and retention. It’s a win-win!
Integrated Charging Savings
The Charge Scheme allows you to save 20–50% on charging, both at home and on public networks, using one simple card. Annual savings often reach £400–£900.
Used EV Options
If you want lower monthly costs, The Electric Car Scheme also offers used electric cars from around £200–£350 per month, with fast delivery and the same all-inclusive benefits.
Personal Lease Vs The Electric Car Scheme Salary Sacrifice Comparison
| Factor | Personal Lease | TECS Salary Sacrifice |
|---|---|---|
| Deposit | £5,000–£10,000 | 0 |
| Monthly Cost (£50k EV) | ~£550 | ~£330 (40% taxpayer) |
| Insurance | Extra (£1,200/yr) | Included |
| Maintenance | Extra (£800/yr) | Included |
| BiK Tax | N/A | ~£640/yr |
| Early Termination Risk | High | Protected |
| Employer Cost | N/A | £0 (saves ~£200/yr) |
| Total 3-Year Cost | ~£31,800 | ~£17,200 |
| Saving | — | £14,600 (46%) |
This comparison highlights how a salary sacrifice lease through The Electric Car Scheme differs from a traditional personal lease in real financial terms. When you factor in the £0 deposit, lower net monthly cost, and all-inclusive coverage, the total cost over three years is significantly lower despite the small amount of BiK tax paid.
Is There Any Situation Where Buying Makes More Sense?
Buying can make sense if you drive very low mileage, plan to keep a car for over 10 years, or want extensive modifications. Even then, fast-moving technology, battery warranty limits, and depreciation mean leasing is often still safer.
For most drivers in 2026, leasing - especially through The Electric Car Scheme - remains the most balanced and future-proof choice.
Getting Started With The Electric Car Scheme
Leasing through The Electric Car Scheme is straightforward.
Check if your employer offers the scheme
Estimate your savings using our salary sacrifice calculator
Choose a new or used electric car
Apply (approval is often within 48 hours)
Take delivery and enjoy all-inclusive electric driving
Eligibility usually requires a post-sacrifice salary above the National Minimum Wage, typically from around £25,000+ gross.
Frequently Asked Questions About EV Leasing
Is It Better To Lease Or Buy An Electric Car?
For most drivers, leasing is better. It avoids depreciation risk, keeps you in the latest technology, and dramatically reduces upfront costs. Through The Electric Car Scheme, leasing is also far cheaper than buying or personal leasing.
How Much Does It Cost To Lease An Electric Car?
Personal EV leases typically cost £400–£700 per month. Through The Electric Car Scheme, most drivers pay £250–£500 per month net, with insurance, maintenance, and charging benefits included.
Can You Lease An Electric Car With No Deposit?
Yes. Salary sacrifice leasing through The Electric Car Scheme doesn’t require a deposit, unlike most personal lease agreements.
What’s Included In An Electric Car Lease?
The Electric Car Scheme includes the car, insurance, servicing, tyres, breakdown cover, and access to The Charge Scheme. Personal leases usually only include the vehicle.
What Happens At The End Of An EV Lease?
You return the car and choose whether to upgrade, extend, or walk away. There’s no selling, no negotiation, and no admin stress.
Can I End An Electric Car Lease Early?
Early termination usually involves costs, but The Electric Car Scheme includes Complete Employer Protection, which manages this smoothly if your circumstances change.
Is Insurance Included With Electric Car Leasing?
Yes, comprehensive insurance is included with The Electric Car Scheme. With personal leasing, insurance is usually arranged separately.
What’s The Best Way To Lease An Electric Car?
Salary sacrifice through The Electric Car Scheme is widely considered the best option in 2026, offering 20–50% savings and £0 upfront costs.
Can I Lease A Used Electric Car?
Yes. The Electric Car Scheme offers used electric cars with fast delivery and the same all-inclusive benefits, often from £200–£350 per month.
Does Leasing An EV Include Maintenance?
Through The Electric Car Scheme, yes. Servicing, tyres, and breakdown cover are all included for the full lease term.
What Tax Do You Pay On A Leased Electric Car?
In 2026, electric cars are taxed at 4% BiK, increasing from April 2026 but remaining far lower than petrol or diesel alternatives.
How Long Should You Lease An Electric Car For?
Three to four years is usually ideal. It keeps you within warranty, avoids meaningful battery degradation, and lets you upgrade as technology improves.
Is Leasing An Electric Car The Right Choice In 2026?
In 2026, leasing an electric car is often the more practical option. Rapid advances in technology, ongoing depreciation, and uncertainty around long-term ownership make buying less predictable than it once was.
Leasing reduces that risk, and salary sacrifice goes a step further by lowering monthly costs and simplifying budgeting. For many drivers, leasing through The Electric Car Scheme offers a straightforward, cost-effective way to switch to electric without long-term commitment.
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The Charge SchemeSave 20-50% on all charging costs through salary sacrifice - at home, the office, or in public..
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Used Electric CarsDiscover the most affordable way to drive electric. Cars delivered in 14 days.
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Last updated: 03.02.26
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme's terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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