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Electric car leasing has become the most popular way to drive a new EV in the UK — and in 2026 the deals are stronger than ever. Monthly payments for brand-new electric cars now start well under £200, the government's revived Electric Car Grant shaves up to £3,750 off the price, and low Benefit-in-Kind tax makes leasing the smart choice for company drivers too. Here is everything you need to know.
What is electric car leasing?
Leasing — also known as Personal Contract Hire (PCH) for private drivers and Business Contract Hire (BCH) for companies — works like a long-term rental. You choose a car, agree a contract length (usually 2 to 4 years) and an annual mileage limit, then pay a fixed monthly amount. At the end of the term you simply hand the car back. You never own the car, but you also never worry about depreciation, selling it on, or battery value dropping. As DriveElectric explains, road tax is included for the lease term and most deals can be paired with maintenance packages covering servicing and tyres for a fixed monthly fee.
Leasing suits EVs particularly well. Electric cars still carry a higher upfront purchase price than equivalent petrol models, so avoiding the capital outlay is attractive — and because you hand the car back before battery degradation becomes a concern, the used-market risk stays with the finance company, not you.
The Electric Car Grant still applies — and it cuts lease prices too
The UK government's Electric Car Grant is worth up to £3,750 (Band 1) or £1,500 (Band 2) on eligible new EVs priced at £37,000 or below. It is applied automatically at the point of sale by the dealer or lease provider, so the discount is baked into your monthly figure before you ever sign. If you are considering a lease, it is always worth confirming the car you want is on the eligible list — our UK EV grants guide explains the full picture, including the £42,000 cap for higher-spec variants.
Best EV lease deals in the UK right now
Because 2026 deals shift constantly, treat any figure as a snapshot — but the pattern is clear. According to What Car?'s August 2026 round-up, the Leapmotor C10 is available from about £199 a month on a 24-month, 5,000-mile contract with 12 months' initial rental (£2,380), while the retro-styled Renault 4 starts at around £216 a month on similar terms. Budget-focused sites such as LeaseCar UK regularly list the MG4 at £220–£270, the Dacia Spring at £135–£180, the Citroën ë-C3 at £150–£200 and the Leapmotor T03 at £150–£190 per month.
- Dacia Spring — the cheapest new EV to lease, from around £135–£180/month. Best for city driving and regular home charging.
- MG4 EV — the budget all-rounder, £220–£270/month. Great value, spacious and one of the UK's most popular EVs.
- Renault 4 — retro styling with modern tech, from roughly £216/month.
- Citroën ë-C3 — comfortable entry-level hatch, £150–£200/month.
- Leapmotor C10 — family SUV space at small-car prices, from about £199/month.
If you want a broader view of which models are worth the money, our best electric cars in the UK guide ranks the top 2026 models across price, range and value — or use the car comparison tool to see how lease-friendly models stack up on range and efficiency.
What affects your monthly lease payment?
Four things move the number more than anything else:
Contract length. Longer terms (3–4 years) usually mean lower monthly payments, but you are locked in for longer. A 2-year deal costs more per month but lets you switch to the next EV sooner.
Annual mileage allowance. The more miles you plan to drive, the higher the payment. Be realistic here — underestimating your mileage can trigger excess-mileage charges at hand-back.
Initial rental. Most leases let you pay 1, 3, 6, 9 or 12 months upfront. A bigger initial payment lowers the monthly figure; a smaller one keeps more cash in your pocket each month.
Tax status. If you lease through a company, electric cars attract just 4% Benefit-in-Kind in the 2026/27 tax year — a fraction of the 24–37% paid on petrol and diesel company cars. Business Contract Hire also lets VAT-registered firms reclaim up to 50% of the VAT on the lease.
Charging costs will also shape your overall budget — see our EV charging vs petrol comparison to understand why home charging access matters so much to a lease's real cost.
Leasing vs buying: which is right for you?
Leasing wins if you like driving a new car every few years, want predictable monthly costs, and don't care about ownership. Buying wins if you cover very high mileage, want to keep the car long-term, or plan to modify it. There is no wrong answer — but for most first-time EV drivers, a lease is the lowest-risk way to try electric without betting on battery resale values. Our VED calculator helps you understand the annual road tax picture, and the BIK & salary sacrifice calculator works out company-car costs.
Final tips before you sign
- Check the battery warranty. Most EV leases sit within an 8-year / 100,000-mile battery guarantee — one less thing to worry about.
- Factor in charging. Home charging is dramatically cheaper than public rapid charging, so think about off-street parking before you commit.
- Use the £3,750 grant. It is applied automatically, but only on eligible models — confirm yours qualifies before negotiating.
- Compare whole-contract cost, not just the monthly headline: add the initial rental and divide by the term to get a true figure.
Leasing has never been a better route into electric driving. With entry-level EVs now available for the price of a coffee a day, the biggest barrier to going electric in the UK in 2026 isn't cost — it's choosing which one.
