The UK’s transition to electric vehicles (EVs) is well underway, with more businesses and individuals exploring the benefits of leasing electric vehicles.
Among these, electric double cab pick-ups are emerging as a practical and eco-friendly solution for those needing both passenger and cargo space. But is leasing one the right option for you? Let’s explore the key considerations in more depth.
The benefits of leasing an electric Double Cab Pick-up
Lower initial costs
Leasing allows you to drive a brand-new vehicle without the substantial upfront cost associated with purchasing. Instead, you make manageable monthly payments, which can be particularly beneficial for businesses looking to manage cash flow efficiently.
Additionally, leasing can help businesses maintain liquidity, allowing for investment in other areas of growth rather than tying up capital in a depreciating asset.
Tax and financial incentives
Leasing an electric vehicle offers potential tax advantages, particularly for businesses.
In the UK, electric commercial vehicles benefit from lower Benefit-in-Kind (BIK) tax rates, (although this will change for double cab pickups from April 2025) and businesses can often claim lease payments as an expense to reduce taxable profit.
Furthermore, VAT-registered businesses may reclaim a portion of the VAT on lease payments. Additionally, first-year allowances may be available on infrastructure investments, such as installing charging stations, further enhancing the financial appeal of EV leasing.
Lower running costs
Electric pick-ups generally cost less to run than diesel or petrol alternatives. With lower fuel costs, reduced servicing requirements due to fewer moving parts, and exemptions from Clean Air Zone (CAZ) and Ultra Low Emission Zone (ULEZ) charges, an electric double cab pick-up can significantly cut ongoing expenses.
Over the lifetime of the lease, these savings can add up to a considerable amount, making EV leasing a financially sound choice for many businesses and individuals.
Environmental benefits
Switching to an electric pick-up helps lower carbon emissions, contributing to corporate sustainability goals and compliance with the UK’s net-zero emissions target. This can enhance your company’s reputation and align with eco-conscious business practices.
In addition, many clients and customers now prefer working with environmentally responsible businesses, so having an EV fleet could improve marketability and customer trust.
Access to the latest technology
Leasing means you’re never stuck with outdated technology. As EV technology evolves rapidly, a lease agreement allows you to upgrade to newer models with better range, efficiency, and features once your term ends. This ensures that you always have access to the latest advancements in battery life, safety features, and onboard tech, making your driving experience more efficient and enjoyable.
Potential drawbacks to consider
Charging infrastructure
Before leasing an electric pick-up, ensure you have convenient access to charging points.
While the UK’s charging network is expanding, businesses operating in remote areas may find public charging less reliable. Installing workplace or home charging stations may be necessary.
Charging times must also be considered, as rapid charging still takes longer than refuelling a diesel vehicle, which could impact operational efficiency for some businesses.
Limited model availability
Electric double cab pick-ups are still a developing market, meaning fewer models are available compared to conventional diesel pick-ups.
However, manufacturers such as Ford, Rivian, Isuzu, Maxus and Tesla are beginning to introduce compelling options. Over the next few years, the market is expected to expand, with more choices offering greater range and performance capabilities tailored to both commercial and personal users.
Mileage restrictions
Most lease agreements come with mileage caps. Exceeding these can result in additional fees, making leasing less suitable for businesses or individuals who frequently travel long distances. If your business operations require extensive travel, it’s crucial to negotiate a mileage limit that aligns with your expected usage to avoid excessive penalties.
Uncertain residual values
While EV depreciation rates are stabilising, the long-term residual value of electric pick-ups remains less predictable than their diesel counterparts. However, since leasing removes the risk of owning a depreciating asset, this may be less of a concern. That said, businesses that rely on resale values as part of their financial strategy may need to carefully evaluate whether leasing or outright purchase is the better option.
Additional considerations
Government incentives
The UK government offers various incentives to encourage the adoption of electric vehicles, including grants and subsidies for installing charging points. Keeping up with these incentives can significantly improve the affordability of leasing an electric pick-up.
Impact on business operations
For businesses relying on vehicles for daily operations, the shift to electric pick-ups could require operational adjustments. Ensuring employees are trained in EV use, optimising charging schedules, and integrating telematics systems to track vehicle performance are all key steps in successfully managing an EV fleet.
Is leasing an electric Double Cab Pick-up right for you?
Leasing an electric double cab pick-up is an attractive option for businesses and individuals who want the latest technology with lower upfront costs and maintenance expenses.
If you operate in an urban environment, where Clean Air Zone fees are a concern, an electric pick-up can provide significant financial and environmental benefits. However, those with high mileage requirements or limited charging access may need to carefully assess their options.
With more manufacturers investing in electric commercial vehicles, leasing now could be a forward-thinking decision that positions you ahead of the curve.
If you’re considering leasing an electric double cab pick-up, compare available models, assess charging feasibility, and evaluate lease terms carefully to make the best choice for your needs. The EV market is evolving rapidly, and making an informed decision now can set you up for long-term benefits in cost savings, efficiency, and sustainability.
TYSONCOOPER are personal and fleet management specialists and can support you with up-to-date market knowledge and analysis.
If you want some help and advice, get in touch and we will go through the options as they relate to your personal circumstances.