In January 2011, a grant of up to £5,000 towards the price of newly launched electric vehicles (EVs) could be up for grabs.  The coalition Lib-Tory administration has kept this subsidy (brainchild of the former Labour government) alive and reckons that around 8,600 cars will be sold in the first year of the scheme. New EV models that may be eligible for the grant could include the £28,900 four-seater Mitsubishi iMiEV and the £28,350 Nissan Leaf, to be built in Sunderland from 2013.

The subsidy will certainly apply to outright purchase and in theory it should also apply to leasing these vehicles.  The vehicles will be purchased by a contract hire company and then effectively “leased back” to prospective car owners.  A decent car leasing company should pass on any purchase savings in subsidy to their customers.  Car leasing monthly payments are usually calculated on the basis of purchase price minus expected resale value at the end of the three year lease term.Like all cars, electric vehicles will depreciate, but they should remain popular and retain their resale value, so contract hire monthly charges ought to be reasonable.In case you’re tempted, thanks to a laughable range and a poor performance, the G-Wizz doesn’t qualify for the subsidy.

Hang on for a few years and your choice won’t just be limited to Mitsubishi or Nissan, although who knows how long the subsidy will last?.   Audi contract hire on something like the all-electric Audi A1 may be better financial option in the near future.Scheduled to go on trial in Munich by mid 2011, these EV’s will manage 81 mph ‘fuel economy’ equivalent to 148.7 mpg.  By committing to a carbon-fibre body for its 2013 MegaCity electric vehicle, BMW contract hire on EVs may also be a future option.BMW hope that the combination of relatively proven battery technology with lightweight composite materials will result in outstanding range and performance.The test bed Mini E manages to deliver an impressive top speed of 95 mph and a whopping 155-mile range thanks to a huge battery pack, at the cost of being able to take one passenger.