As organisations accelerate their transition to electric vehicles (EVs), the traditional question of leasing versus owning fleet assets becomes even more critical — and more complex. With the added need for EV charging infrastructure, capital allocation decisions must be made carefully and strategically.
Whether you plan to buy or lease EVs, the first step remains the same: you must understand what your fleet currently costs to operate. Without accurate reporting and cost analysis, leasing might seem more convenient, but is it really the smarter financial decision?
Step One: Understand Your Fleet’s Total Cost of Ownership
Transitioning to electric vehicles introduces new cost factors. While EVs often have lower running costs (such as fuel and maintenance), upfront purchase prices are typically higher, and installing EV charging infrastructure is a significant capital investment.
To make an informed leasing or buying decision, organisations need to calculate:
- Vehicle purchase or lease costs
- Charging infrastructure purchase, installation, and maintenance
- Energy (electricity) costs
- Ongoing vehicle maintenance
- Insurance and registration
- Depreciation
- Administration and compliance costs
Working with a fleet consultant like WLC Fleet Consulting ensures you have detailed, reliable data to model your options accurately and avoid unexpected costs.
Leasing EVs: Pros and Cons
Leasing electric vehicles can allow organisations to adopt new technology with lower upfront investment. Many leasing providers also offer flexible terms as EV technology evolves.
Advantages of leasing EVs include:
- Preservation of cash for investment in infrastructure
- Regular access to the latest EV models and technology
- Reduced risk if EV residual values fall faster than expected
- Potential bundling of maintenance and support services
However, leasing can limit flexibility, particularly if you are investing in charging infrastructure tied to specific vehicle types or operating locations. Over the vehicle’s lifecycle, lease costs may exceed direct ownership costs.
Buying EVs and Infrastructure: Pros and Cons
Purchasing EVs and your own charging infrastructure gives you complete control over your transition strategy and fleet operations.
Advantages of buying include:
- Full ownership of infrastructure assets that have long-term value
- Greater flexibility with fleet use, modifications, and disposal
- Potential to capitalise on government incentives for EV purchases and chargers
- No lease restrictions on vehicle use or kilometre limits
The challenge with buying is the heavy upfront capital outlay. Funds tied up in vehicles and chargers could potentially deliver higher returns if invested elsewhere in the business.
A Capital Management Decision — Not Just a Fleet Decision
Ultimately, whether you lease or buy EVs and infrastructure should be seen as a capital allocation decision. Leasing may free up funds that can be reinvested into higher-return business opportunities. Buying may deliver lower long-term fleet costs and greater operational control.
Critically, the investment in EV charging infrastructure needs to be planned carefully — matching the scale, location, and type of chargers to your operational needs. These infrastructure decisions must also be factored into your financial models, not treated as separate from your leasing or buying choice.
Start with the right data. WLC Fleet Consulting can help you assess your fleet costs, model your EV transition options, and make the best strategic decision for your organisation’s future. Contact WLC Fleet Consulting today to get the full picture.
