Buy or Lease an EV? How to Decide

Buying: What You Get

When you buy an EV, you own it outright (or once you finish paying off the loan). That means no mileage limits, no end-of-contract inspections, and full freedom to modify the car however you want. Install your own home charger setup, add a tow bar, swap the tires for whatever you prefer.

You also keep the car's residual value. If you take care of it, you can sell it later or trade it in. The flip side is that you take on the depreciation risk. EVs tend to depreciate faster than petrol cars in the first 2-3 years, partly because the technology improves so quickly. After that initial drop, values tend to stabilize.

The upfront cost is higher, whether you pay cash or finance. But once the car is paid off, your only ongoing costs are electricity, insurance, and maintenance, which are all lower than a comparable petrol car.

Leasing: What You Get

Leasing gives you a new EV every 2-4 years with lower monthly payments. That matters more with EVs than with petrol cars, because the technology is still improving fast. Battery range, charging speed, and software all get noticeably better with each generation.

You also dodge depreciation risk entirely. The leasing company takes on the resale value uncertainty, and the manufacturer's battery warranty typically covers the full lease term. No worrying about what the car will be worth in three years.

The trade-offs: mileage limits matter more with leases (excess charges can be steep), you never build equity in the vehicle, and some contracts include battery condition clauses at return. You also can't modify the car, so no aftermarket charger installs or accessories that aren't removable.

Side-by-Side Comparison

When Buying Makes More Sense

• → You drive a lot (over 20,000 km/year) and don't want to worry about mileage penalties.
• → You plan to keep the car for 5+ years, long enough to offset the higher upfront cost.
• → You want to modify it: install a home charger setup, add accessories, or customize the car.
• → You found a good deal on a used EV, where the steepest depreciation has already happened.
• → You want to avoid ongoing payments. Once the car is paid off, your costs drop significantly.

When Leasing Makes More Sense

• → You want a new EV every 2-4 years. EV tech is moving fast, and leasing lets you keep up.
• → You drive a predictable amount that fits comfortably within the mileage allowance.
• → You don't want depreciation risk. Residual values for EVs are still hard to predict.
• → You prefer fixed monthly costs with no surprise repair bills or resale headaches.
• → You're not sure if EV ownership is for you long term. A lease lets you try it without committing.

What About Financing?

Financing (PCP or a loan) sits between buying and leasing. You build equity over time but spread the cost into monthly payments. At the end of a PCP deal, you can pay the final balloon payment to own the car, or hand it back. It's a good middle ground if you want ownership without the full upfront hit.

The Bottom Line

If you drive a lot, want full control, and plan to keep the car for years, buying makes more sense. If you like having the latest tech, want predictable costs, and prefer not to deal with resale, leasing is the better fit. Neither is wrong. It depends on your situation.

Already decided? The EV Buyer's Checklist covers everything to check before purchasing. If you're leaning toward leasing, the EV Leasing Checklist walks through contract terms, battery clauses, and end-of-lease tips. And the TCO Calculator lets you compare the total cost of ownership for any EV against a petrol equivalent.

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