Benefits of leasing an electric vehicle for longer
As companies and consumers seek ways to improve sustainability and reduce costs, the choice of which car to lease and for how long becomes increasingly important. Battery electric vehicles (BEVs) offer a promising solution, combining environmental benefits with potential cost savings.
While the initial investment for BEVs may be higher than that of traditional internal combustion engine (ICE) vehicles, opting for longer lease durations can significantly lower monthly payments and expand vehicle options. In this article, we will explore the advantages of leasing electric vehicles for a longer period, highlighting how this approach can benefit both your budget and the planet.
At Ayvens, we see our clients already opting for leases of 4+ years and in some countries like the Netherlands, the average contract duration for new orders is around 4.5 years.
Leasing for five years can result in great cost savings across your fleet
Battery electric vehicles (BEV) usually have a higher initial investment value and depreciation compared to internal combustion engine vehicles. If you’re looking to save costs on your lease contract or fleet, while reducing CO2 emissions, choosing to lease for a slightly longer duration might be the right choice for you. Generally, the longer the lease, the lower the monthly payments, making it an effective way to reduce overall fleet costs.
Save up to 1000 SEK a month when leasing a battery electric car for 2 more years
Example of leasing a Kia EV3 at 30,000km per year:
- 3-year lease: 8111 SEK per month
- 4-year lease: 7341 SEK per month (Savings: 770 SEK a month)
- 5-year lease: 7046 SEK per month (Savings: 1065 SEK a month)
Please note that this is only an example. The total final price may change depending on terms and conditions.
Battery electric vehicle technology is better than ever
With battery electric vehicle technology improving over recent years, deciding on a longer lease duration is a good choice. And, with the possibilities of regular software updates, giving you more features that were not available when your car was first delivered you can still get new features without having to get a new car.
BEVs typically have fewer moving parts compared to traditional internal combustion engine (ICE) vehicles, which translates to significantly reduced maintenance needs. The simplicity of their design means there are fewer components that can wear out or require replacement, leading to lower overall maintenance costs and less frequent service visits.
Recent research1 shows that electric vehicle batteries retain more capacity than originally thought. An EV that’s driven around 200,000 kilometres retains, on average, around 80% of its battery’s original capacity, a slower degradation than previously expected. A study by the SLAC-Stanford Battery Center2 revealed that electric vehicle batteries may last a third longer than previously estimated under real-world driving conditions, challenging traditional lab testing methods and highlighting the benefits of actual driving behaviours on battery longevity.
Longer BEV durations can increase vehicle choice
Leasing an electric vehicle for a longer duration not only reduces your overall leasing costs but also increases your options within your budget. The savings from a longer lease can allow you to consider larger or more premium models. If you are transitioning from ICE vehicles to electric and want to offset the higher costs, a 5-year lease could be ideal for you.
The environmental benefits of a longer lease duration
Choosing to lease an electric vehicle for a longer duration can also be good for the environment. Longer lease durations lead to a decreased need for new vehicles. Fewer new cars mean less energy used in production, fewer raw materials consumed, and fewer emissions.
Expert support for customers
If you’re already an Ayvens customer and are looking for support in transitioning to electric vehicles or in lowering fleet costs, we can help with that. Contact your account manager and we can review your fleet and provide insights on how much you can save by choosing to lease electric vehicles for a longer duration.
Let’s redefine the leasing standards for driving electric vehicles. By choosing longer lease contracts, you can enjoy financial benefits while contributing to a more sustainable future.
