Renting an electric car can give you more freedom, and let you try before you buy
(Picture: Getty Images)Many motorists are interested in trying out an electric car but feel reluctant to take the plunge in case it doesn’t suit their lifestyle. Renting can be an excellent way of sampling an electric vehicle without fully committing.
Online research provides an enticing array of rental choices, some of which can involve having a new motor delivered to your door with just a few clicks. But just because you can sign up to a rental or subscription quickly it doesn’t mean you should.
Many of these deals are complex transactions, involving not just the car itself but also other aspects such as mileage allowances, fees for vehicle damage, insurance, a charge for additional drivers, maintenance, fees if you want to end a lease early, delivery charges and so on.
There are so many variables that comparing like with like can be a challenge
As there are so many variables ‘comparing like with like’ can be a challenge. So make sure you spend time number-crunching and studying the small print; also ask family and friends and visit electric vehicle forums on social media for advice and personal recommendations.
But, having got the ‘check the terms and conditions’ issue out of the way, renting or subscribing to an EV can definitely be a positive move. Then the vehicle’s depreciation isn’t your problem but that of the rental company, and you don’t have to worry about the stressful process of either buying a car or selling it on.
The next step is deciding what type of rental you’re going to go for. There are three main strands: short-term, subscription or leasing.
Short-term EV Rental
If you’re an infrequent car user or want to keep the bar low when trying out an EV then a car club, or short-term rental, can be a good option. You can rent for as little as a few hours, a day or a weekend. Most car clubs have vehicles on-street in specific locations that can be booked and unlocked via an app.
Some companies ask for a monthly subscription and then the user pays extra for rental and mileage, while others are completely pay-as-you-go. Electric cars are increasingly being offered as an option. However, EVs are not yet available in as many locations as ICE vehicles so you might face a journey to pick up your car.
There are also luxury services, such as that offered by The Out, which is backed by Jaguar Land Rover and offers hourly or day rental together with delivery to your door within London Zones 1-5.
With Zipcar basic membership, which has a £10 application charge but no monthly fee, you can rent a Volkswagen e-Golf from £16/hr. This includes 3rd party insurance and breakdown cover.
The Out can provide a Jaguar i-Pace for 24 hours from £295. This includes fully comprehensive insurance and breakdown cover. A deposit hold of £3,000 is secured against your card and the hold is lifted when the car is returned without damage.
EV car subscription
Running a car in the conventional way can involve a lot of admin – sorting out road tax, insurance, breakdown cover and maintenance. A car subscription bundles all these costs together in one monthly payment with little or no deposit required and the flexibility of cancelling at short notice.
There are some car manufacturers, such as Volvo, that offer subscriptions, but for a wider selection of vehicles to choose from you can approach companies such as Onto and elmo. Their subscriptions have a broad array of vehicles and the option to swap to a different car with 30 days notice. Motorists have to pass the subscription company’s criteria, which normally involves being over a certain age, usually 25 or 30 for premium cars, and passing a credit check.
elmo doesn’t require a deposit but delivery and collection fees are each £119. The subscription covers insurance, road tax and breakdown cover and motorists can choose to drive a Vauxhall Corsa-e from £499 a month or sample a Jaguar i-Pace from £1149 per month.
EV car leasing
Car leasing, also called Personal Contract Hire (PCH), is a long-term rental, usually involving a deposit and a commitment of two to four years. Before signing up it’s important to consider what would happen if your circumstances change. What if you don’t want to run a car any more or can’t afford the monthly payments?
With car clubs or subscriptions you can just revert to taking the bus but with a lease there can be hefty ‘exit fees’ and it’s important to check them out when assessing deals. When researching online you’ll see that the monthly payment alters depending on mileage, deposit and the length of the lease, so tweak them until you find an arrangement that suits you.
The lease market can be confusing and leasing comparison sites such as Leasing.com and Autoleasecompare are worth checking out. The leasing company remains the car’s registered keeper but you’ll need to sort out insurance yourself.
Lease through salary sacrifice
Leasing an EV via a salary sacrifice scheme can be cost-effective, though it is important to research it thoroughly. The scheme needs to be set up by your employer and your payments for the car are made from your pre-tax income. Companies such as The Electric Car Scheme can help facilitate this.
The deals on the Leasing.com website, with a 36-month term and road tax included, include a Vauxhall Corsa-e for an upfront payment of £2,773, monthly payment of £308 and overall leasing cost of £13,677 and a Jaguar i-Pace is on offer for £7,396 upfront, a monthly payment of £821 and total cost of £36,160.
For more guidance on buying or renting an electric vehicle see standard.co.uk/plugitin
