Electric Car Lease or Buy? A Practical Guide for 2026

More than half of the BMW survey respondents said that they want to try out a used electric car through leasing first. At the same time, over one in four new leasing inquiries already focus on EVs.

But that doesn’t automatically mean that leasing makes more sense than buying. You should pick the option that fits your lifestyle and budget. And which option is that? Find out here.

• One of the biggest hidden benefits of EV leasing is that you don’t carry any depreciation risk.

• For EV newcomers, leasing offers a low-risk way to experience electric driving before committing to ownership.

• Despite flexibility, exiting or changing an EV leasing contract early can be very expensive.

• Leasing an electric car can cost more overall than buying if you plan to keep the car long-term.

The choice between leasing and buying an electric car depends on how you plan to use it and for how long. Leasing is often a simpler, more flexible, and more predictable option. If you’re planning to keep the car for many years and want to save money in the long run, buying can make more sense.

• Have a predictable monthly cost

• Avoid tying up capital

• Regularly be able to switch to a newer model

• Stop worrying about battery degradation 

• Avoid stressing out about car depreciation

• Want to keep the car for many years

• Plan to drive a lot

• Would like to modify/customise the vehicle

• Can afford to buy the electric car without an expensive loan

Leasing an electric car means there’s no big upfront payment, so you can start driving sustainably right away. You could literally have it by the end of the month. It also makes it possible to enjoy newer models as technology improves, without having to sell the car yourself.

The benefits of leasing an electric car include:

• Fixed monthly payments that make budgeting easier

• The option to switch to newer models with improved range and technology

• A simple, flexible alternative to buying a car

To be honest, leasing any EV might be the smartest thing to do right now. Reason being that the technology is advancing so quickly that there's likely to be a substantial benefit to upgrading in a couple of years. A lease will more easily allow this. Reddit user

Private leasing provides a flexible entry point for those who wish to transition to electric driving. You don’t have to have a large sum of money, nor do you have to worry about the possible car depreciation. Private leasing is especially popular for compact and mid-size EVs such as the Opel Mokka Electric, VW ID.3, and Cupra Born.

Here is who it is suitable for:

• Families with children: You drive a modern, safe car of the size that suits your needs. Plus, you don’t have to stress about repair bills, as there will be hardly any repair costs in the first few years of owning an electric car.

• Commuters: Fixed monthly costs make budgeting simple, and you can choose a mileage that matches your routine.

• Tech fans: You are free to switch to a newer EV with better range and smarter features every few years.

• Homeowners: Charging at home keeps running costs low, while leasing shields you from resale value losses.

Corporate leasing makes it easier to set up an EV fleet without a big upfront investment, so companies don’t have to tie up the kind of budget that could otherwise go toward things like an office upgrade or new equipment. Plus, fleets can be scaled up or down quickly as teams grow or change.

On top of that, corporate leasing usually comes with extra financial perks. We are talking about deductible lease payments, VAT advantages, and access to business-only offers and conditions.

Corporate leasing is suitable for:

• Small businesses: Clear monthly costs and bundled services make planning easy, even without a full accounting team in place.

• Medium-sized businesses: An affordable way to use electric cars without spending a great amount of money, you’d rather invest in growing your business.

• Large companies: An efficient solution for building a modern, sustainable vehicle fleet. 

• Staff and benefit vehicles: A fleet of electric cars can be an attractive employee perk.

• Companies with sustainability goals: Switching to electric driving shows real commitment.

When a company leases an electric car, it can save money through VAT recovery. If the car is used for both work and private trips, the business can usually claim back 50% of the VAT included in the monthly leasing payments. If the car is used only for business purposes, the benefit is even greater. As long as the company can clearly prove there is no private use, it can recover 100% of the VAT on the leasing costs.

EV leasing usually comes in three main types: kilometre leasing with a fixed mileage, residual value leasing where resale value matters, and operating leases for businesses with all-in costs included. Each differs in risk, flexibility, and who it’s best for.

The monthly rate is based on a fixed annual mileage. You don’t have to worry about the car resale value.

• Fixed annual mileage (e.g. 10,000 - 20,000 km)

• Extra kilometres are charged

• Residual value risk lies with the lessor

The monthly rate is based on the expected resale value at the end of the lease. This means if the car is worth less than expected at the end of the lease, you may have to pay the difference.

• More common in business leasing

• Monthly rate can be lower than the kilometre leasing 

• Market value disputes can lead to unexpected charges

This is an all-inclusive leasing model for businesses. The car is treated as a usage cost. Most operating leases are designed to be down-payment-free.

• All-inclusive model (service, maintenance, insurance)

• Typically, no down payment

• Vehicle does not appear on the company's balance sheet

EV leasing is usually offered in modular packages. You can combine vehicle use with services like maintenance, insurance, and charging solutions. Some companies like INSTADRIVE offer so-called car subscription services with zero down payment but a higher monthly rate. 

The main downsides of leasing are higher total costs, mileage limits, and less flexibility. You can’t freely customise or resell the car, and extra kilometres or minor wear may result in additional charges when you return it.

If you plan to buy the car in the end, leasing is usually more expensive than financing it from the start.

Many lease contracts include usage restrictions, most commonly a mileage cap. For example, a lease contract may include 20,000 km per year. If you drive 25,000 km, the extra 5,000 km are charged at, say, 5 - 15 cents per km when the car is returned.

With a leased car, you can’t freely customise the vehicle. Changing the colour is usually only allowed via a fully removable vinyl wrap. Reupholstering, removing seats and swapping the steering wheel are also no-go. 

Because you don’t own the car, you can’t resell it. Ending a lease early is usually expensive, and in most cases, you can’t simply transfer the contract to someone else if your situation changes.

When the lease ends, the car is inspected. The leasing company may charge for a scratched bumper, worn interior, or small dents and classify them as “excessive wear”.

Leasing an electric car costs more than just the monthly rate. Insurance, winter tyres, registration fees, and other add-ons can quickly increase the total. Your monthly and overall costs depend heavily on the leasing model and what’s included in the contract.

Here’s what that means for your wallet:

• One predictable monthly payment: Most leases have a fixed amount you pay every month. Of course, it makes budgeting easier.

• Several things influence the price: The car brand, model, year, features, how many kilometres you’re allowed to drive, and the leasing company itself all affect the cost.

• Always read the fine print: Take time to understand what’s included in the contract and compare offers from different companies so there are no unpleasant surprises later on.

Whether it’s a compact city EV like the Nissan Leaf, a family-friendly Hyundai Kona Electric, or a premium option like the Tesla Model Y, leasing and buying can look very different depending on the lease conditions and the car.

* Insurance prices are always individual and cannot be directly compared; this price is taken from durchblicker.at. Remember to always check and compare car insurance based on your own situation.

Note on the column “Mercedes Benz EQS 350”:

You look at the monthly rate and think, “Well, that’s not bad at all” — €496.04. But wait until you do the final math. Once you add semi-insurance and increase the mileage by just 5,000 km per year, the real monthly cost becomes: €496.04 + €100 + €55.08 ≈ €651.12. 

This calculation still excludes the €27,065 down payment. Spread over the 36-month lease term, this adds ~€751.81 per month. Including this, the effective monthly cost rises to approximately €1,402.93.

Note on the column “Opel Mokka”:

At first, it looks like the car costs €709.00 per month. Your friends might even call it a bargain. But once you dig a little deeper, you’ll likely realise you need more mileage and at least basic insurance. Add those in, and the monthly cost becomes: €773.99 + €42.50 + €29.99 ≈ €846.48 per month.

When leasing an EV, plan mileage realistically, check charging options, and see what insurance and service are included. Make sure the battery warranty covers the lease term, read the return rules, and focus on the total cost and not just the monthly rate.

• Choose a mileage that fits your real life, not your best intentions. If you commute 60 km a day or visit friends often, 10,000 km per year may be too low. Adjusting the mileage is usually possible, but it may come with additional fees.

• Consider charging the leased electric car at home or at work. This will likely make your EV life much easier and cheaper. For example, a wallbox at home or charging at the office can save you time and reduce reliance on public chargers.

• Check what’s included in the monthly rate. Some leases cover maintenance and insurance, others don’t. An all-inclusive offer may cost a bit more per month but saves stress and unexpected bills.

• Make sure the battery is covered by a warranty for the full lease term. Most manufacturers guarantee at least 70% battery capacity for 8 years.

• Look closely at the return rules. Small scratches, worn seats, or dents may be charged as excess wear. Knowing what’s considered “normal use” helps avoid sad situations later.

• Low monthly rate looks good, but always check the full picture. Downpayments, service costs, insurance, and excess-kilometre fees can change the real cost significantly.

• Before signing, check the early-termination conditions carefully. As an experience of one of the go-e team members shows, interrupting a leasing agreement can be quite expensive.

When leasing a used EV, note any existing damage, ask for a battery health report if available, and make sure all charging cables and accessories are included to avoid extra costs later.

• Inspect the car carefully for scratches, dents, or worn interiors. Document the existing damage, even if it seems hardly noticeable, to avoid being charged for it when returning the car.

• Some providers offer a battery health report. You can also check it yourself at any time (both when buying the car and later on to monitor the battery or get ready for resale) using a simple OBD2 adapter and an app.

• Make sure all charging cables are included. Replacing missing or damaged cables later can be expensive.

There are several reliable platforms where you can lease an electric car. Many drivers also choose to go straight to the manufacturer of their preferred model and arrange the leasing directly with them.

Ayvens

• It is the world's largest multi-brand EV player, managing roughly 3.4 million vehicles across 44 countries.

• The primary "white-label" leasing partner for BYD across Europe.

• Through Ayvens Flex, you can lease an EV for as little as 1 to 24 months.

Zenith

• Leader in second-life Leasing.

• While new EVs can have long lead times, Zenith’s used stock is often ready in under 14 days.

• Most Zenith schemes require £0 upfront, meaning you can get into a £30,000 EV without touching your savings.

Carwow

• You get access to a massive network of leasing brokers and franchise dealers.

• Lease deals are presented with clear cost breakdowns.

• The platform allows you to put two or three EVs side-by-side to see how they stack up on monthly lease price, charging efficiency, and boot space.

Electric vehicles continued to play a central role in the leasing market in 2025. While combustion-engine cars still dominated overall demand, EVs accounted for over 27% of all leasing inquiries. Here are the five most leased electric cars in 2025:

Fiat 500e

Once again, the Fiat 500e secured the top spot as the most leased electric car of the year. Its success is driven by an attractive combination of compact size, urban suitability, and consistently competitive leasing rates.

Cupra Tavascan

The biggest winner of 2025 was the Cupra Tavascan. Even though it didn’t get to first place, it did achieve the strongest year-over-year growth among all EVs.

MG4

The MG4 continued to stand out as one of the few Asian models to perform strongly in the leasing market. Its solid range, modern design, and aggressive pricing kept it highly competitive. By the way, SUVs dominate when it comes to leasing, accounting for over half of all the demand.

Volkswagen ID.3

As a staple of Volkswagen’s electric lineup, the ID.3 continued to perform well. It benefited from brand trust and a broad target group ranging from private to fleet customers.

Cupra Born

Despite remaining in the top five, the Cupra Born saw declining demand in 2025. Rising leasing rates compared to the previous year likely contributed to this drop.

Finding out that your friend leased a car instead of going for the good old “buy it outright” option probably doesn’t trigger a big wow reaction anymore. And that’s exactly the point. Leasing, especially for electric cars, has quietly become the practical choice for a lot of drivers. 

The 2025 Car Cost Index shows that EVs are becoming increasingly cost-competitive across Europe. In many countries, they’re already cheaper to lease than petrol or diesel cars once you look at the full picture. Models like the VW ID.3, Tesla Model 3, or Hyundai Kona Electric often come out ahead thanks to lower energy and maintenance costs.

According to market forecasts, the European electric vehicle leasing market is expected to more than double from about USD 55 billion in 2025 to over USD 129 billion by 2030, growing at an impressive 18.5% CAGR. A big part of that growth comes from fleets and businesses. Corporate fleets already account for more than half of all EV leasing in Europe, pushed by sustainability targets, tax incentives, and the simple need to keep costs predictable. At the same time, leasing has become the go-to way to deal with fast-moving EV technology. Shorter contracts, flexible terms, and bundled charging solutions make it easier to switch without long-term commitment.

So, electric car lease or buy? There’s no one-size-fits-all answer. Your mileage, budget, tech preferences, and how long you plan to keep the car all matter. This quick comparison helps you choose the option that matches your driving habits and priorities.