Leasing an Electric Car in 2025: What You Need to Know

Going electric in 2025? Here's how leasing makes it easy

Leasing an Electric Car in 2025: What You Need to Know

Electric vehicles (EVs) continue to grow in popularity across the UK, and leasing one is now one of the most accessible and cost-effective ways to go electric, whether for personal use or as a company car.

In this guide, we’ll cover the key things you need to know about leasing an EV in 2025, including range, charging, tax benefits, and how salary sacrifice can make it even more affordable.

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🚗 Why Lease an Electric Vehicle?

Leasing lets you drive a brand-new EV without the upfront cost or long-term commitment of buying. As EV technology evolves quickly, leasing also means you can upgrade every few years and stay current with the latest models and battery performance.

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🔋 EV Range in 2025: Better Than Ever

One of the biggest concerns for drivers switching to electric is range, but things have come a long way. Many EVs in 2025 now offer real-world ranges of 200 to 300+ miles on a full charge, with some premium models exceeding 350 miles.

Popular examples:

• Tesla Model Y: Up to 331 miles (WLTP)

• Hyundai IONIQ 6: Up to 338 miles

• MG4 Long Range: Around 281 miles - excellent for the price

Modern EVs are more than capable of handling daily commutes, long trips, and everything in between.

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⚡ Charging Infrastructure: Easier Than You Think

Charging has become faster, cheaper, and more convenient:

• Home charging (with a wallbox) is ideal for most drivers and can cost as little as 8–15p per kWh on an off-peak tariff.

• Public chargers are now widely available, with over 50,000 charge points across the UK and growing fast.

• Rapid chargers (50kW+) can boost your battery from 10 to 80% in around 30 minutes.

EV leasing customers can also benefit from home charger installation grants or special leasing packages that include charging support.

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💰 Tax Benefits & Lower Running Costs

Switching to electric can save you money in several ways:

• Benefit-in-Kind (BiK) Tax: EVs have a BiK rate of just 2% in 2025 for company car drivers - far lower than petrol or diesel.

• No road tax (VED) for fully electric cars

• Congestion charge exemptions in cities like London (at least until 2025)

• Lower servicing costs due to fewer moving parts and no engine maintenance

Combined with cheap home charging, the total running costs of an EV can be significantly lower than traditional vehicles.

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🧾 Salary Sacrifice for Electric Cars

If you’re a business owner or HR decision-maker, salary sacrifice is one of the smartest ways to lease electric cars for your team.

Here’s how it works:

• The cost of the lease is deducted from the employee’s gross salary

• This reduces their income tax and National Insurance contributions

• The employee gets a fully maintained electric car at a lower net cost

Employers can offer a valuable benefit with no upfront cost and potential National Insurance savings too.

We offer salary sacrifice packages with full support, including guidance on setup, quotes, and communication with your team.

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