Electric car leasing and car subscription compared
The world of EVs is a new and exciting one, but it can also be confusing. If you're thinking about leasing an electric car in the UK, you may be wondering what your options are in terms of the types of financing, contract length commitments and whether there are better alternatives to car leasing available to you.
Whether leasing or subscription is right for you ultimately depends on your unique needs and driving habits. To make the best decision, you need to understand how each option works.
Whether it’s your first electric car, or you’ve been plugging-in for years, deciding whether to lease or subscribe to your next car can be a tough decision, if you’re unaware of all the facts.
Fact #1 - Deposits
- Car leasing requires a large upfront non-returnable deposit.
- Subscription is a month-by-month solution that requires no upfront deposit.
Fact #2 - Contract length
- Car leasing contracts are longer based on 24 to 48 month commitments.
- Subscription offers drivers a flexible, 30-day contracts without a long-term commitment.
Fact #3 - Extra costs
- Leasing means paying extra for insurance, servicing, maintenance and charging.
- Subscriptions include insurance, road tax, breakdown cover, servicing and free public charging*.
*If you select a no-charging subscription, this won’t apply.
Fact #4 - Time and administration
- Leasing involves multiple telephone calls and paperwork for financing, tax, insurance and servicing.
- Subscription is a fully digital experience where you can arrange everything with a few clicks online.
Fact #5 - Delivery time
- Car leasing can involve waiting many months for the car you want to arrive.
- Subscription lets you choose from a range of cars already in stock so no long waits for delivery.
Fact #6 - End of contract
- At the end of a personal contract hire lease you need to return your vehicle by the lease termination date, otherwise you may incur a late charge. If you have a personal contract purchase lease, you will need to pay the final balloon payment to take outright ownership of the car. This means you could owe a large amount at the end of the lease.
- At the end of your Onto subscription, you arrange the collection in your app and only have to pay the collection fee of £129.50.