Electric car leasing: is the price higher than for gasoline or diesel?

An NGO denounces the practices of car leasing companies, accusing them of high profits on electric vehicle rentals.

The NGO Transport & Environment published a report today accusing lease financing companies (long-term rental and lease-with–option-to-buy) of not adjusting monthly rents to the market. This hinders the electric transition of vehicles in Europe.

According to the NGO, leasing companies charge rental prices to car lessees in LLD or LOA (Rental with Purchase Option). They pay on average 57% more on their monthly lease for an electric car than for a combustion engine vehicle, according to this study.

Transport & Environment specifies that financing companies are hidden giants of the automotive market. They recorded profits of over €2.6 billion for the three largest companies in 2021. According to the NGO, these financing companies own a fleet of more than 12 million vehicles in Europe.

What can be said about this NGO’s study?

The NGO’s study considers financing companies to be obstacles to the transition to 100% electric cars in Europe. It accuses them of profiting at consumers’ expense, while these companies should be leading the electric transition.

They have some of the largest fleets in the 🚗 industry… but you've probably never heard of them.

Leasing companies are key players in the #EVtransition.

It’s time they recognized the huge responsibility they have to the 🌏 by setting EV goals of their own. pic.twitter.com/8HAJ6hy450
— T&E (🦋 find us @transenv.bsky.social) (@transenv) February 23, 2023

The Peugeot 208 is said to have a monthly rent of €547 for the electric version and €355 for the petrol version in France, according to the NGO. It accuses leasing companies of recovering a larger share of the depreciation for the electric version than for the petrol version.

However, these figures should be taken with caution. The study specifies that the electric version of the 208 is the “Peugeot e-208 electric 136 hp Active Pack”. Its petrol version is the “Peugeot 208 PureTech 75 hp S&S Active Pack”. However, comparison is difficult: the two vehicles do not have the same power (136 hp versus 75 hp) nor the same features.

The NGO’s study compared three other vehicles in a similar manner, also with higher rates for electric versions, but these are difficult to compare:

Renault Clio TCE 90 (90 hp) and the Renault ZOE E-Tech R110 (110 hp);
Volkswagen Golf Life 1.0 TSI 110 (110 hp) and a Volkswagen ID.3 Pro Performance First (204 hp);
Volkswagen Tiguan Life 1.5 TSI 150 (150 hp) and Volkswagen ID.4 Pro (174 hp).

Values for “resale value” and depreciation vary depending on the market. Therefore, the price data are only temporarily valid. Additionally, it is difficult to determine from brand to brand whether electric lease rates are higher in the long term.

Also read: Leasing is preferred over credit by a majority of French people