EV Loans vs Leasing: Which One is Right for Your Business?

As electric vehicles (EVs) gain traction in India, businesses are faced with a crucial decision—should they buy an EV through a loan or lease it? Both financing options have their pros and cons, and the best choice depends on factors like budget, usage, and long-term financial goals. This guide breaks down EV loans vs leasing to help you make an informed decision.

EV Loans: Advantages & Disadvantages

Pros:

• Full Ownership: The vehicle is yours once the loan is repaid.

• Tax Benefits: Interest paid on EV loans is deductible under Section 80EEB.

• No Usage Restrictions: No mileage or operational limitations imposed by leasing agreements.

Cons:

• Higher Upfront Costs: Down payment and EMIs can strain cash flow.

• Maintenance Responsibility: Business must bear repair and servicing expenses.

EV Leasing: Advantages & Disadvantages

Pros:

• Lower Initial Costs: No large down payment required.

• Hassle-Free Maintenance: Most leases cover repair and service expenses.

• Flexibility: Easier to upgrade to new EV models.

Cons:

• No Ownership: The EV remains the property of the leasing company.

• Mileage Restrictions: Some leases come with annual mileage limits.

Which Option is Right for You?

• Choose a loan if you want long-term asset ownership and tax benefits.

• Opt for leasing if you prefer lower upfront costs and hassle-free maintenance.

At EVrisefinance, we provide both leasing and loan solutions to meet your business needs. Get in touch today to find the perfect financing plan for your EV fleet.