"EVs cost more to lease." It's the most common objection we hear at the showroom — and it's partly true. The headline monthly figure on an electric car often is higher than its petrol equivalent. But "monthly lease cost" is one cell on a spreadsheet, not the whole story.
We took five real lease deals from our own catalogue in May 2026 and compared them against their petrol equivalents — including the costs people forget to add: fuel, tax, servicing. Here's what we found.
Ground rules
To keep this honest, every comparison uses:
- Same lease profile: 9+35, 36-month term, 8,000 miles/year
- Real May 2026 quotes from our own pipeline (not list price)
- Fuel/charging at UK averages: petrol £1.42/L, home electric 28p/kWh, public rapid 65p/kWh (60% home, 40% public mix)
- Real WLTP fuel economy / efficiency figures
The headline numbers
| Comparison | EV /mo | Petrol /mo | "EV more" |
|---|---|---|---|
| VW ID.3 vs VW Golf 1.5 TSI | £289 | £268 | +£21 |
| Tesla Model 3 vs BMW 320i | £412 | £448 | −£36 (EV cheaper) |
| Peugeot e-408 vs Peugeot 408 PHEV | £224 | £259 | −£35 (EV cheaper) |
| BYD Sealion 7 vs Hyundai Tucson 1.6T | £493 | £329 | +£164 |
| BMW i4 vs BMW 420i Gran Coupé | £499 | £467 | +£32 |
So lease-cost alone, the EV is more expensive in 3 out of 5 cases. But this is where most comparisons stop — and where they're wrong.
Adding in fuel costs
At 8,000 miles a year:
| Car | Efficiency | Annual fuel/charge |
|---|---|---|
| VW ID.3 (4.0 mi/kWh) | 2,000 kWh/yr | ≈£820 |
| VW Golf 1.5 TSI (47 mpg) | 774 L/yr | ≈£1,099 |
| Tesla Model 3 (4.2 mi/kWh) | 1,905 kWh/yr | ≈£781 |
| BMW 320i (38 mpg) | 957 L/yr | ≈£1,359 |
| Peugeot e-408 (3.8 mi/kWh) | 2,105 kWh/yr | ≈£863 |
| Peugeot 408 PHEV (110 mpg) | 330 L/yr | ≈£469 + £180 home charging |
The EV is meaningfully cheaper to run in every comparison, even with our generous public-charging mix. Petrol annual costs average £1,200; equivalent EV costs average £820.
Tax (the bit people forget)
Three things you'll pay differently:
- Road tax (VED). Currently both EV and petrol cars pay VED — but EVs at standard rates only from April 2025, and many leases still include it as part of the contract.
- Benefit-in-Kind (BiK) tax, if it's a business or salary-sacrifice lease. This is huge. EV BiK in 2026/27 is just 4%. Petrol/diesel cars are typically 25-37%. On a £40,000 car, that's the difference between paying £1,600 a year in BiK and £12,000+.
- Congestion / low-emission charges. EVs are exempt from London ULEZ + Congestion Charge. If you drive into central London regularly, that's another £12-30 a day saved.
💼 If it's a business lease, the EV is almost always cheaper
The BiK saving on a company-supplied EV vs petrol equivalent is usually £200-500 a month in your pocket. That single line item flips every comparison in this article in favour of the EV.
Total cost of ownership — the full picture
| Car | Lease/yr | Fuel/yr | Annual TCO |
|---|---|---|---|
| Tesla Model 3 | £4,944 | £781 | £5,725 |
| BMW 320i | £5,376 | £1,359 | £6,735 (+£1,010) |
| Peugeot e-408 | £2,688 | £863 | £3,551 |
| Peugeot 408 PHEV | £3,108 | £649 | £3,757 (+£206) |
Once fuel is added to the lease, both EV comparisons above swing in the EV's favour by £200-1,000+ a year. And we haven't added BiK savings (which double that gap on a company car).
Where petrol is genuinely cheaper
It's not all one-way:
- Premium / larger SUVs — newer EVs at this end of the market are still 30%+ more expensive on monthly than their petrol equivalents, and the fuel saving doesn't fully close the gap if you don't drive much.
- Low-mileage drivers under ~5,000 miles/year. Fuel savings are smaller, so the EV's higher upfront premium takes longer to "pay back."
- No home charging. If you can only public-charge, average cost per mile creeps up to 12-15p/mile — close to petrol on a high-mpg car.
Our verdict
If you can charge at home and drive 6,000+ miles a year, an EV in 2026 is almost always cheaper across the lease term than its petrol equivalent — sometimes dramatically so. If it's a company or salary-sacrifice lease, it's a no-brainer.
If you can't home-charge, or drive under 5,000 miles a year, the maths gets closer — but rarely tips back in favour of petrol once you add tax.
🎯 Quick test: if your annual mileage × 8p (typical fuel-cost saving per mile EV vs petrol) is bigger than the monthly EV premium × 12, the EV is the cheaper choice. £21/mo premium × 12 = £252/yr — so anything over ~3,150 miles tips in the EV's favour.