Is an electric van worth leasing?

An electric van is worth leasing if your routes are predictable, you can charge at a depot or home, and real-world range covers your longest regular day. If you do long, unpredictable mileage or can't charge reliably, a diesel van may suit better.

The detail

Where electric tends to work well

• Fixed or repeat routes, such as local deliveries, trades within a set area and multi-drop work.
• Vans that return to the same place every night, so they can charge off-peak.
• Work in cities with emissions charges or clean air zones, where diesel vans can cost extra to enter.
• Businesses that want predictable running costs, since contract hire fixes the rental over the term.

Where it can be harder

• Long motorway days, which rely on public rapid charging.
• Heavy payloads or towing, which reduce real-world range.
• Cold weather, which also reduces range.
• No off-street parking, which makes charging inconvenient and can raise energy costs.

Points to check before you sign

• Range: compare the real-world range for your typical load, not just the official figure.
• Payload: battery weight can reduce the payload of some models, so check it against what you carry.
• Charging: work out where, when and how much it will cost, including installing a charge point if you need one.
• Mileage allowance: contract hire sets an annual mileage, and going over it usually brings excess mileage charges.
• Tax: VAT treatment, benefit-in-kind and road tax rules for electric vans change over time. Check current rules with HMRC or your accountant.
• Maintenance and tyres: decide whether you want maintenance included, and note that electric vans can wear tyres differently.
• End of contract: know the return condition standards and any charges for damage beyond fair wear and tear.

A worked example

Here is how to test the decision with your own numbers. It uses a made-up scenario with no figures, so you can fill in the gaps yourself.

A small electrical contractor runs one van. It covers the same regional area each week and is parked at the owner's premises overnight, where a charge point could be installed.

1. Write down the longest day you do regularly. Note the distance and the load. If the electric van's realistic range, with a margin for cold weather and payload, covers that day comfortably, the van is a candidate.
2. Get like-for-like quotes. Ask for the same term, annual mileage and maintenance option on the electric and diesel versions, so the monthly rentals compare fairly.
3. Estimate energy against fuel. Work out the cost per mile of charging at your own site, then the cost per mile of diesel at your usual fuel prices. Use your own bills and current tariffs, not averages.
4. Add the extras. Include charge point installation, any congestion or clean air zone charges you currently pay, and differences in servicing.
5. Check the tax position with your accountant.
6. Compare the totals over the full contract term, not just the monthly rental.

If the electric van fits the longest regular day and the total cost over the term is equal or lower, it is likely worth leasing. If the van only just covers the longest day, or you would rely on public rapid chargers most days, the diesel option may be safer for the business.

Related questions

• How does business contract hire differ from buying a van outright?
• What happens if I go over my agreed mileage?
• Can I get maintenance included in a van lease?
• What should I check about charging before choosing an electric van?
• What are the end-of-contract return conditions?

Questions people ask

Is leasing an electric van cheaper than leasing a diesel one?

It depends on the model, term, mileage and how you charge. Compare the total cost over the whole term, including energy, any charge point installation and zone charges, rather than the monthly rental alone.

Do I need a charge point at my premises?

Not always, but charging at a depot or home is usually the most practical and economical option. Relying on public chargers can add cost and time to your working day.

Can a sole trader or limited company lease an electric van?

Both can apply for business contract hire. Whether a funder accepts an application depends on its own credit and affordability checks, so nothing can be promised in advance.

Is contracthire.tv a lender?

No. contracthire.tv is run by Swiss Vans Ltd, which is a credit broker (FCA FRN 668283), not a lender. We introduce your enquiry to funders who make their own decisions.