Skoda Enyaq iV Lease deals

Our Skoda Enyaq iV Lease deals - is no deposit the best solution?

It wasn’t too long ago that the thought of a Skoda car would instil dread and concern in many of the UK’s personal and business leasing customers. A Czech car manufacturer established around 1925, this “eastern-bloc” vehicle was often considered inferior and akin to the Russian-made Lada.

But throughout the 90’s until the 2000 takeover by the VW Group, much began to alter, so much so that Skoda now have a firm worldwide presence and are one of the highest for profit within the group, second only to the luxury Porsche brand.

And not unlike the VW brand, Skoda also have big aspirations for electrification which began in 2015 with a number of PHEV technologies being made available for the Octavia and Superb coupled with a pure electric Citigo e iV in early 2020 and the bigger Enyaq iV following in late 2020.

What’s interesting about the Enyaq iV is that it is now viewed as a genuine alternative to the comparable VW Id.4 and Q4 e-tron (and to also the Mercedes EQA and BMW iX3). This is no longer a cheaper or budget brand, with the all-electric family SUV being equally popular among personal, business and salary sacrifice leasing scheme customers.

Indeed, the brand has seen such impressive demand for both the standard and coupe model that waiting times / build times for a new option are now incurring long delays. For a customer placing an order in July / August 2023, expect a factory order to take upwards of 46 weeks on a standard model with the sleeker coupe likely to take 26 weeks.

Skoda ENYAQ IV Estate 132kW 60 ecoSuite Nav 62kWh 5dr Auto Electric Car Lease

The thought of waiting for almost one year to receive your new Enyaq may seem surreal but with current events, the build times of most new vehicles is clearly being impacted. For customers, PCH or BCH, already in a lease agreement if you do want to order the 4x4 SUV Enyaq, consider placing it at least 6 - 12months before contract end date and be prepared to extend your current vehicle until the new one arrives. While the Enyaq will not have 7 seats nor is it the same size as the Kodiaq (it is slightly shorter and lower), the e-car lease team still consider it to be one the best family BEVs in the UK.

But is a no deposit lease available on the Enyaq?

Your initial rental, or deposit as some refer to it as, will be a key part of your financial suitability assessment with this electric Skoda. However, do note all salary sacrifice (“sal sac”) schemes must be carried out on a no initial / no deposit basis. In leasing, or contract hire as it is known, we generally don’t use “no deposit” as a term because this finance product is a usership style product - you cannot own or buy the EV at the end of the contract.

As such, we say “initial rental”, as this refers to the amount you pay in month 1 followed by your subsequent monthly rentals. Unlike hire purchase or personal contract purchase, leasing is not interest-led in the same way, so making a large upfront payment will not make the overall cost any cheaper. For consumers or businesses, the ability to control your initial rental is key to making the most out of the product. The e-car lease website, like many brokers and dealerships, will provide a customer with the flexibility of a 1 / 3 / 6 / 9 / 12 initial rental.

But what does that actually mean?

As you see on our website, when you select a different initial rental, the monthly rental will change accordingly. For example, if you select a 1/S (or no deposit arrangement) on the Enyaq this will show as £495 plus Vat on a 48 month and 5,000 mile per annum contract. However, if you select a 12/S (or big deposit) on the same profile this adjusts to £402 per month … so which is cheaper?

By way of “maths” you can see that option 1 would cost 48 payments x £495, which is a total of £23,760.00. In Option 2, which is the initial rental of £4824 plus 47 rentals x £402, the total is £23,718.00. So as you can see, the overall cost is pretty much equivalent regardless of your selection. For a business, which can offset the rentals against corporation tax, we do understand that there are tax benefits in utilising a bigger initial rental to maximise the taxation offset.

But for many consumers and businesses, the most important thing is a cash flow and utilising large sums of cash as part of a deposit or initial rental contribution is not always great practice. And fundamentally, because the overall cost is equivalent, there are few benefits in pursuing this.

With regards to no deposit v big deposit leasing we recommend that you consider your options more carefully and carry out the proper suitability asessment. With electric vehicles there can be other additional costs to take into account as part of this review.

For example, you or the business will need to invest into charge point infrastructure at the domicile or business workplace. To helps customers, we have now partnered with Rightcharge to provide price comparison examples for personal and business customers on a new charge point. And, as part of their service, finance plans are available so you don’t have to pay the full cost immediately; a new charge point will cost anywhere between £1000 - £2000 for the supply and installation (minus any relevant grants or subsidies which are available).

Add to this any motor insurance and maintenance and / or servicing packages, and you quickly realise there are other associated expenditure. This is what we refer to as Whole of Life costs. Throughout our website, the unique “living with your…” tools help you to understand all of this clearly and succinctly. For any PCH, BCH or Sal Sac needing to make that initial investment, the no initial rental / no deposit is a practical solution.

Skoda ENYAQ IV Estate 132kW 60 ecoSuite Nav 62kWh 5dr Auto [100kW] (Pure Electric Vehicle),

In terms of the car shown here, the Skoda ENYAQ IV Estate 132kW 60 ecoSuite Nav 62kWh 5dr Auto [100kW] (Pure Electric Vehicle), this is based on the following configuration: