RAC launches new leasing service to help drivers switch to EVs

The RAC has launched a new consumer leasing service to help drivers switch to electric vehicles (EV).

The RAC has teamed up with Hitachi Capital Vehicle Solutions to offer EVs at prices starting from £227.99 a month for a five-door Nissan Leaf 110kw N-Connecta 40kWh.

Its new finance service follows findings from the RAC Report on Monitoring 2020 which showed three-quarters of drivers (78%) believe the price of pure electric cars are ‘too expensive’.

The RAC claims that its leasing deals work out cheaper than some petrol models when factoring in savings on fuel and taking into account running costs over three years.

It believes it can work out cheaper to run an electric car than a similar sized petrol one.

Sarah Winward-Kotecha, director of EVs at the RAC, said: “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.”

Demand for electrified vehicles has overtaken that of diesel-powered models for the first time in the leasing sector, according to Leasing.com.

Almost a quarter of Brits (23%) see themselves driving an EV by 2026, according to research by Volkswagen Financial Services UK (VWFS).

Customers can choose the length of their leasing agreement and how much the initial rental payment is – usually the equivalent of one, three, six or 12 months’ rental payments, said RAC.

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.”

Drivers using the new RAC leasing site can also select a service and maintenance plan.