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To Lease or Not to Lease – Is Leasing EV Charging Right for your Fleet?

Businesses looking to install EV charging infrastructure should carefully consider available payment options for fleet electrification, such as leasing EV chargers.

Electric Vehicle (EV) Fleet Charging Using Load Balanced Charge Points

As time marches on and we edge closer to 2035 when sales of new petrol and diesel vehicles will come to a halt in the UK, businesses of all sizes are busily taking on the challenge of electrifying their fleets.

A key element of this challenge is power. Getting sufficient power into the vehicles at the right time, in the right way to enable the business to continue operating effectively and profitably. It’s an important consideration for every fleet manager today. It’s one that involves multiple business stakeholders – up to and including the board – because of the sizeable investment required.

EV fleets are considered “mission-critical” in today’s parlance. They are every bit as crucial to an organisation as its buildings, IT, plant and machinery, etc. And, like those essential components, it involves a significant outlay. That said, most businesses chose to lease rather than buy their buildings, IT, plant and machinery, etc.

So, why not lease the EV charging infrastructure? After all, there are several excellent reasons to do so. In this blog, we look at:

  • What we mean by leasing
  • The benefits of leasing EV chargers
  • How and what you can lease


Leasing EV Charging Infrastructure: What does this mean?

Rather than purchasing equipment outright, leasing it means that you can pay in manageable instalments over a pre-agreed term via a third-party finance agreement.

It’s like a loan, but one that is secured against the assets you have already acquired which means you can get a lower rate of interest.

As mentioned, most businesses lease some equipment. Around 80% of the FTSE 500 lease their IT and infrastructure equipment, for example, because of the benefits it brings to their bottom-line. Leasing EV charging infrastructure offers many of the same benefits – and others – to make leasing something that every fleet manager charged with fleet electrification must explore.

What are the benefits of leasing charging infrastructure?

Leasing provides benefits like getting the equipment a business needs today, without having to lay out large sums of money upfront. Leasing rather than buying helps preserve working capital and prevents a business tying up money in ever-depreciating assets.

Because lease payments are usually tax deductible, leasing reduces the tax liability burden on a business. This can outweigh the cost of the interest you might pay.

Most importantly, leasing releases money that can be invested in more profitable activities, the kind that enable a business to grow.

Among the other benefits, leasing provides access to the best quality equipment, without having to compromise based on budget.

As payments are fixed for the entire term, budgets can be set with certainty.

Leasing does not affect existing credit lines, keeping credit lines intact for investment in growth activities.

By leasing charge point infrastructure, the business is free to upgrade, make additions, or settle the finance agreement at any point.

And, at the end of the lease there is a range of flexible options, including indefinite ownership.

So, how does leasing work?

Like any purchase, the lease process begins by looking at what your fleet charging needs are. This usually involves working with an EV charge point provider with experience of specifying, designing, installing and managing EV fleet infrastructures.

From here, once the business need has been determined, the next step is to explore pricing options with the supplier. Some, like Mer, will be able to offer a range of payment options that best suit your budget. These can include weekly, monthly and quarterly, with tenures from 1 to 5 years. Costings for the different options should be provided quickly and clearly.

Once credit approval has been given and the lease agreements have been signed, the specified equipment will be delivered, and installation can go ahead as normal.

What can you lease?

The simple answer is all of it! Mer’s leasing options for EV charging apply across:

  • Hardware
  • Mounting posts
  • Prefabricated bases
  • Accessories – cables, etc.
  • Mer’s leading back-office software
  • Installation costs – which can be sizeable
  • Consultancy, training and maintenance.

In short, Mer’s leasing options put your entire fleet and workplace EV charging infrastructure within reach.

What next?

There’s enough pressure on businesses to reduce their emissions and electrify their fleets without having to become sustainability or electricity experts. In the same way, fleet managers don’t want to become finance experts. With Mer’s expert guidance, backed up by years of experience, the right EV charging infrastructure for your fleets is no longer out of reach

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