Advantages

Buying outright is the simplest way to fund a new electric car or van.

Keep the vehicle as long as you want and run it up to any mileage.

Technically you can 'profit' from looking after the vehicle well and achieving a better resale price than the normal market value.

Vehicles can be sold at any time without a specific financial penalty (leasing companies usually charge a penalty for ending a lease contract early).

Certain businesses can get 100% tax relief on an EV in the tax year of purchase.

Disadvantages

You are exposed to changes in market values and maintenance costs, in particular if used vehicle prices drop.

Money tied up in the car or van can't be accessed without either selling it or pledging it as security for a loan.

Businesses lose the use of money that could be invested elsewhere in the business to generate profits e.g. new manufacturing machinery.

The vehicle will appear as a depreciating asset on the balance sheet of a business purchaser.

Advantages

You only repay interest charges and depreciation costs during the term of the finance agreement.

The vehicle's expected future value at the end of the agreement is fixed so you know the minimum you will get for it when you finish the repayments.

If the car or van is worth more at the end of the agreement than the forecast value you can keep the difference or use it as a deposit towards a new vehicle.

You are protected from unexpected drops in second hand values.

Businesses can get a tax deduction on the interest charges on the finance, plus depreciation.

Disadvantages

You can't sell the car before the end of the contract without incurring a financial penalty.

If you exceed the agreed contract mileage or hand back the vehicle with excessive wear and tear you will incur financial penalties.

You repay less of the purchase price so interest charges are higher than bank loans or hire purchase.

The vehicle will appear as a depreciating asset on the balance sheet of a business purchaser.

Advantages

The leasing company recovers VAT on the price of the vehicle so the lease rentals for cars are lower than comparable business or personal contract purchase.

You avoid some of the normal responsibilities of ownership, such as sourcing the best deal and haggling for the best resale (or 'residual') value.

You can swap to a new car every 2-4 years to keep pace with developments in battery and other in-car technology.

As long as the leasing company looks after the residual value smaller businesses don't currently need to declare the lease as a liability on the balance sheet.

Disadvantages

Deposits can be as high as 9 x the monthly lease rentals.

If you terminate the lease early you will have to pay a penalty (usually a number of months rentals).

If the vehicle is returned with more than the agreed mileage or with excessive wear and tear then 'end of contract' charges may be made by the leasing company.

The leasing company gets any surplus residual value on the vehicle at the end of the lease (there are some exceptions for business finance leases).

Advantages

You pay a monthly rental to cover all your costs of using a car or van.

You can cancel the subscription and just hand back the vehicle.

Monthly subscription covers depreciation, servicing and repairs, tyres, insurance and breakdown recovery and, typically, recharging costs.

You can swap to a new car whenever you want to keep pace with developments in battery and other in-car technology.

You get a fixed monthly 'allowance' of inclusive mileage and can top-up or 'roll-over' mileage if necessary.

Disadvantages

Monthly payments are a lot more expensive than traditional car or van finance or leasing.

If the vehicle is damaged outside the insurance terms you are liable for the repair costs.

Recharging points may be limited to those operated by the subscription company or its affiliates.

Usage restrictions may apply to limit how you drive the vehicle and 'black-box' telematics may report on your driving behaviour.