No Deposit Electric Car Leasing - Can you do it?

No Deposit Electric Car Leasing - Can you do it?

The growth of electric car (and van) leasing has not gone unnoticed. As reported yesterday in Transport and Energy, 1 in 11 cars is now a zero emission! 

Considering pre-Covid, the UK public were essentially being told that “electric cars are coming; but not yet” and “EVs are definitely on to consider towards 2030” the seismic growth has shocked even the most ardent of electric vehicle enthusiasts (including the team at e-car lease). Indeed our fundamental issue is not in speaking to potential personal, business and salary sacrifice customers; the main objective is now finding a suitable option to lease in 2022.

Many manufacturers are incurring such a demand that they cannot fulfil the orders which dealerships, finance companies and brokers are placing with them. What a two years it has been - and that’s without addressing Covid, microchip shortages and worldwide political unrest!

Where e-car lease have noticed a sharp change with electric cars is with the requests for ”no deposit” leasing deals (we call this no-initial rental leasing in the strictest legal sense). Why is this? Many businesses and salary sacrifice customers will often pursue this style of contract arrangement as this is far more cash-flow efficient.

To be clear, the amount of money you pay in month 1 of the agreement is called the initial rental and this is generally taken by direct debit circa 1 - 2 weeks after the vehicle has been delivered to you. Is leasing an EV different to buying one? Yes. There are subtle differences between our industries, as many dealerships will often take the deposit from the customer before the car is actually handed over to them.

With contract hire, some customers find it bizarre that we only take our administration fee (£360 including Vat) at the point of order and then the vehicle is delivered some weeks/months later. Because our team will take your banking details, the initial rental and subsequent monthly rentals are simply taken by direct debit. In some cases, we will receive enquiries from customers asking when the finance company will actually charge them for their delivered vehicle. However, because e-car lease are a leasing broker, this mean we are a conduit between the supplying dealer and finance company, so there are a number of practical paperwork steps we need to undertake after your car has been successfully delivered to you.

The initial rental you, or the company, pay is agreed before you sign our order. With leasing, this amount can be a derivative of 3 / 6 / 9 /12 or be a no-initial or flexible initial rental. Because the total amount payable will remain the same REGARDLESS of the initial rental chosen (as contract hire/leasing is not interest-led), it is very much a circumstantial decision as to what initial rental best suits your needs and requirements.

For example, some customers prefer to make a big initial capital outlay and reduce their monthly exposure whereas as others are more cash-flow focused and so will try to keep the initial rental as low as possible. For business leasing this makes more sense financially particular in salary sacrifice arrangements. Again, just because your initial rental is lower does not mean that the overall cost of the agreement will be any higher. To help provide complete clarity to any of our customers, our team will supply the total cost payable with all of our quotations.

The only caveat to this arises where credit becomes an issue. Contract hire and leasing is a credit-based product and this equally applies to EVs. Every personal and business lease customer must carry our some form of credit search with an underwriter (or underwriting system) before our e-car lease team can order a vehicle or send finance documents to you. If you have poor personal credit, a company without positive net worth or are a newly incorporated company, then it may be that leasing is not suitable for your needs and requirements.

There is no “automatic acceptance”. When you choose a no initial rental / no deposit option with us, please do note that finance companies will often more closely monitor your credit position because there is no initial capital outlay. This can make the underwriting process a little slower than we would normally envisage.

The benefits of moving to an electric car are now equally evident amongst personal and business customers. Whether you want to reduce company car tax exposure, improve your whole of life cost provision or simply want to enjoy electric motoring, just get in touch with our e-car lease team to know more.

Ford Mustang Mach-e Estate 258kW Extended Range 88kWh AWD 5Dr Auto

In terms of the car shown, the Ford Mustang Mach-e Estate 258kW Extended Range 88kWh AWD 5Dr Auto, this is based on the following configuration:

• Additional Premium paint - Infinite blue
• Perforated full sensico artificial leather - Black with red stitching
• 19” Black Machined alloy wheels

What is the actual range of the new Ford Mustang Mach-e Estate 258kW Extended Range 88kWh AWD 5Dr Auto?

Because e-car lease do not provide one set amount, we ask all of our customers to review the information below which helps show the way in which the Ford Mac-E performs in different weather conditions and while undertaking different driving styles.

What charging cables and battery details do I need to know about with the Ford Mustang Mach-e Estate 258kW Extended Range 88kWh AWD 5Dr Auto?

Because e-car lease are the leading electric car experts, the information we provide ensures you or the company have everything made available to you including the charging speed, plug-type and charge port location on your new Ford Mac-E.

How long does it take for the Ford Mustang Mach-e Estate 258kW Extended Range 88kWh AWD 5Dr Auto to charge?

To understand how long the Ford Mac-E will take to charge on a 3-pin plug (domestic socket), 7 kW home charge point and rapid charger (DC charging) please see below.