How Electric Car Leasing Works in the UK
Electric car leasing lets you drive a new EV for a fixed monthly cost over an agreed term—without owning the vehicle. This guide explains the common UK leasing structure, what you pay for, and what happens at the end.
What is EV leasing?
UK EV leasing is typically a rental agreement arranged through a broker/provider and funded by a finance company. You pay to use the vehicle for a set period and mileage allowance, then return it. The vehicle remains the property of the finance provider.
Step-by-step: how a lease usually works
- Compare deals. Filter by budget, range, term, and mileage to shortlist suitable options.
- Choose contract terms. Typical terms are 24–48 months with an annual mileage allowance.
- Apply and get approved. Applications are subject to credit and affordability checks by the finance provider.
- Delivery and handover. The vehicle is delivered and you sign acceptance paperwork.
- Drive within the agreement. Keep to mileage limits and follow servicing requirements where applicable.
- End-of-lease return. The car is returned and inspected for fair wear and tear.
What you pay for
- Initial rental (upfront payment), often shown as a multiple of the monthly cost (e.g. 6 or 9 months).
- Monthly rentals fixed for the agreement term.
For a deeper breakdown, see initial rental vs monthly payments.
Personal vs business leasing
Leasing is commonly arranged as PCH for individuals or BCH for organisations and sole traders (subject to provider criteria). The structure is similar, but tax/VAT treatment can differ. See personal vs business EV leasing.
Important: Lease offers are provided by third-party brokers and providers. Prices, availability, and terms can change. Applications are subject to provider approval and credit checks. Always confirm full details with the provider before proceeding.