Peugeot offers iOn electric as lease only

Concerns over the cost of replacing a battery in electric cars have led many to speculate they will become worthless once the battery needs replacing, which could put some buyers off.

However, Peugeot has navigated the problem by offering the all-electric iOn city car on a four-year lease from £415 a month.

The four year, 40,000 miles contract will include the lease of the vehicle including the battery pack, full warranty cover for both vehicle and battery pack and full servicing and maintenance for four years.

Peugeot has been quick to outline the low running costs of the iOn, including no petrol or diesel costs, exemption from the London exemption charge and free parking in certain areas.

On top of this, Peugeot estimates it will cost £2.50 to run the car for 120 miles, and as the range of the iOn is 93 miles, this will be less for a single six-hour full charge.

The lithium-ion battery can be charged up to 80 per cent in half an hour using a special quick charge socket for extra convenience.

Peugeot is aiming the iOn at the growing Electric Vehicle (EV) market in Europe amid claims it could take up to five per cent of the total European Market by 2020.

It will face competition however, from the Citroen C-Zero, a rebadged version of the iOn. Both were designed alongside the Mitsubishi i-MiEV.

It remains to be seen if Citroen will follow Peugeot’s lead by offering the C-Zero as a lease-only car, or if it will sell it outright.

The Peugeot iOn will arrive in the UK late in 2010, although it will not now be available under the government’s green car scheme, which offers a minimum of £5,000 discount on electric vehicles.