Press release -
RAC makes driving an electric car more affordable with launch of new consumer leasing service
With more than three-quarters (78%) of drivers* believing the prices of pure electric cars are still too expensive, the RAC has launched a new leasing service to make switching to a brand-new EV easier and more affordable – with market-leading deals available from day one.
The RAC has joined forces with Hitachi Capital Vehicle Solutions to offer a wide range of the most popular EV models currently available in the market at prices starting from just £227.99 a month for a five-door Nissan Leaf 110kw N-Connecta 40kWh.
While the deals offered by the RAC are extremely competitive compared to other forms of finance on EVs, they can also work out cheaper than popular petrol models, particularly when factoring in the savings on fuel. For example, 10,000 miles of petrol for a car capable of doing 50 miles per gallon would set drivers back in the region of £1,179 a year at the current UK average price of 131p a litre in stark contrast to equivalent electricity cost of around £167** – a saving of more than £1,000 (£1,012) a year. And, as EVs are exempt from car tax, there’s a further saving of nearly £500 over three years which equates to £163 a year. This means that between fuel and car tax, EV drivers can be over £1,300 a year better off than those in petrol or diesel cars.
As a result, when taking all running costs into account over the most common lease period of three years, the RAC believes it can work out considerably cheaper to run an electric car than a similar sized petrol one.
Drivers using the new RAC leasing site can also select a service and maintenance plan so they can be even more certain of their costs. In addition, the top deals featured are based on in-stock vehicles so customers can have their new car delivered in just a few weeks.
What’s more, all the RAC’s leasing deals come with breakdown cover as standard which gives drivers the opportunity to benefit from the RAC’s unrivalled, van-fitted EV Boost emergency charging system should they run out of charge on a journey or encounter an out-of-order charge point. And, if something more serious goes wrong, RAC patrols have the equipment in their vans to be able to tow stricken EVs with all four wheels off the ground which means customers don’t have to wait for a separate tow truck. The RAC All Wheels Up recovery system is unique and is technology that is not offered by any other UK breakdown provider.
RAC director of EVs Sarah Winward-Kotecha said:
“We know from RAC research there’s a growing desire among drivers to go electric but that the high upfront cost tends to be the biggest barrier to take-up, so we’ve teamed up with Hitachi Capital Vehicle Solutions to help people make the switch more easily and more affordably.
“Using the RAC’s manufacturer relationships, combined with Hitachi Capital Vehicle Solutions’ expertise and buying power, we’re able to offer some of the most competitive leasing deals available. Some of these are extremely compelling, so much so that a customer can lease a brand-new EV from as little as £227.99 a month. All customers need to do is find the best insurance for them.
“On top of this drivers also have the savings on fuel from driving electric which can amount to several thousands of pounds over the course of a three-year lease. And, the fact there’s no car tax to pay on EVs means there’s also a further saving of nearly £500 compared to a new petrol car.
“We’d urge any driver thinking of changing their vehicle to think about all the costs they’ll pay for the period they have the car, as with an electric model there are substantial savings to be had.
RAC EV leasing offers***
Customers can choose both the length of their leasing agreement and choose how much the initial rental payment is – usually the equivalent of one, three, six or 12 months’ rental payments. The prices below are based on a three-year agreement – 10,000 miles per year – with an initial payment of six months’ rental followed by 35 monthly payments.
Car: make and model
Rental: 6 months + 35 monthly payments - 10k miles, non-maintained, inc VAT
Nissan Leaf Hatchback 110kw N-Connecta 40kWh 5dr Auto
Vauxhall Corsa-e 100kW SRi Nav Premium 50kWh 5dr Auto (7.4kwch)
Hyundai Kona Electric Hatchback 100Kw Premium 39kWh 5dr Auto
Hyundai Kona Electric Hatchback 150kW Premium 64kWh 5dr Auto
Peugeot e-2008 Electric Estate 100kw GT Premium 50kwh 5dr Auto
Mercedes EQA AMG Line
Mercedes-Benz EQC AMG Line
Mercedes EQC AMG Line Premium
Jon Lawes, managing director at Hitachi Capital Vehicle Solutions, said:
“By partnering with the RAC we are confident that more people than ever will realise that getting into an electric car is far easier and more affordable than they might have thought.
“We’ve worked closely with RAC to create a site that allows drivers to find their perfect car easily by browsing a range of competitive offers with flexible initial rental, term and mileage options. It was clear to us that they were the natural choice to work with to help make the switch to electric a reality for drivers, particularly as they’ve pioneered breakdown solutions which give drivers complete peace of mind when it comes driving an electric car.”
Sarah Winward-Kotecha added:
“While leasing isn’t the most common form of car finance, we believe it’s a very sensible choice for those wanting to drive an EV as it can work out cheaper than other car finance options. With leasing you don’t own the car, so its value at the end of the term is the finance company’s concern – you can just give the car back at the end of the agreed term, or take a new leasing deal on the latest new model featuring the latest technology.
“We’re totally committed to helping drivers go electric. We’re not only number-one for EV breakdowns, thanks to being the only national roadside assistance company in the UK to have equipped patrol vans with engine-powered lightweight EV chargers, we’re also helping drivers to go electric every step of the way. This ranges from providing them with all the information on the subject on our website to answering questions in person via our new RAC EV Experts telephone helpline, and now making it affordable to drive one. There’s even more to come very soon.”
For more information, visit www.rac.co.uk/electric-cars/leasing.
Notes to Editors
* Research for RAC Report on Motoring 2020
** Based on an RAC lease on a Nissan Leaf 110kw N-Connecta 40kwh – range of 168 miles (168/40 = 4.2) and a 7p per kWh bespoke home electricity tariff for 10,000 miles = 10,000/4.2 x 0.07 = £166.67
*** Correct at time of issuing
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About the RAC
The RAC provides complete peace of mind to 12m UK private and business drivers, whatever their motoring needs. Its services include:
- Breakdown assistance. Its highly-skilled, 1,600-strong branded patrol workforce attends more than two million breakdowns every year, fixing on average four out of five vehicles at the roadside. The RAC’s patrol fleet is one of the most advanced in the UK, and was the first to roll out both an All-Wheels-Up recovery system, allowing the vast majority of vehicles to be recovered from a single patrol van, and EV Boost mobile electric vehicle charging units
- Insurance. The RAC is a top-five car insurance broker having surpassed the 500,000 policies-in-force milestone in 2018. It also offers ‘black box’ telematics policies, as well as home and travel insurance
- Other motoring services. The RAC leads in the development of new solutions for business, fleets, electric vehicles and future car technology. Its additional products and services include a personal loans offering, a used car buying website, vehicle inspections and checks, legal services or up-to-the-minute traffic and travel information. It also has a network of Approved Dealers and Approved Garages which combine the trust of RAC brand with local service and convenience
The RAC also works to support the interests of its members and UK drivers on the most important motoring issues which it identifies via the annual RAC Report on Motoring and the RAC Opinion Panel. The Report on Motoring is the longest running analysis of driver opinion in the UK having been published every year since 1989.
For more information about the RAC, visit the RAC website.