All these electric cars and trucks are exciting, but buying a new vehicle is a big decision. On top of that, you’ll have to find charging stations and ensure it has enough range for longer trips. As you may probably imagine, owning an EV is an entirely different experience than your old gas-guzzler.
Whether you buy or lease a new car is a big deal, regardless of the model. And while leasing isn’t for everyone, here are a few reasons it makes even more sense when it comes to electric vehicles.
Why Consider Leasing an EV?
Cars are expensive, and that’s especially true for electric vehicles. You’ll want to make sure this technology is right for you. That’s because EVs drive differently, with features like regenerative braking and near-silent operation. Plus, you’ll have to wait around at a charging station instead of spending five minutes to top off with gasoline.
Whilerequired EV maintenanceis less than with traditional cars, and you’ll save money on gas, trying everything an electric car offers with a lease before going all-in is a good idea.
1. Test Things Out Before You Fully Commit to a Loan
You only have a fewoptions for affordable EVs, as most are more expensive than regular vehicles. Before you jump into a long-term auto loan that’s 60, 72, or even 84 months, consider leasing for two to three years instead. This way, you may enjoy an extended test drive without handcuffing yourself to enormous payments for the next six (or more) years.
The average auto lease is 24 or 36 months long, which is still a big commitment, but that’s far less than if you buy outright. We recommend testing the waters before you fully commit, orconsider buying a used EVinstead.
2. Federal EV Tax Incentives Are Great for Leasing
If you’re shopping for a new electric vehicle, you’re likely looking for the best deal possible, and to do that, you’ll want to take advantage of the $3,750 or $7,500 federal tax credit. However, the Inflation Reduction Act of 2022 drasticallycut down on models available for the federal EV tax break, and now, there’s a good chance you won’t be able to get the full discount. While most EV models no longer qualify, a workaround is to lease instead.
There are strict guidelines for manufacturing and battery material sourcing that change which vehicles qualify. Thankfully, you can still get that discount with a lease. It’s a huge loophole that automakers like Subaru are actively promoting. The shortlist of eligible vehicles goes out the window during a lease, saving you upwards of $7,500 and lowering your payment.
3. Find Nearby Charging Stations and Get Yourself Familiar
Once you get an EV, you may have to change your driving habits, choose different routes, and plan accordingly to find somewhere to recharge. You’ve probably heard or read horror stories about an EV running out of battery during a road trip or a driver being unable to find somewhere to recharge. While it’s true that charging stations aren’t nearly as accessible as your traditional gas station, the situation is rapidly improving, and excellentEV route planning appsare readily available.
How fast the public adopts EVs will depend heavily on the charging infrastructure. Charging stations aren’t on every corner like a gas station, and that’s especially true in smaller cities or states without widespread support. However, thanks to Tesla opening its Supercharger network to other EVs and the fact that big manufacturers like Ford have adopted its NACS (North American Charging Standard) plug, charging isn’t too big of a concern.
Still, you’ll want to find nearby charging stations and familiarize yourself with routes, charging speeds, and how that changes your driving habits. If you find out the charging situation in your area isn’t up to par, at least it’s on a lease.
4. Test the Range and Performance for Your Lifestyle
Many electric vehicles on the road have more than enough range for the average car buyer. They get better range than many gas-powered trucks, are comparable to most ICE cars, and range anxiety isn’t that big of an issue. Still, you’ll want to investigate, consider, or test it as you prepare to buy a new EV.
According toEnergy.gov, the average daily commute travel time to work in the US is just under 27 minutes, and the mileage numbers aren’t much different. Judging by that, the range of an electric vehicle shouldn’t be an issue. It’s more of a concern for longer road trips, and you may want to spring for a long-range model or something with a bigger battery if you travel frequently.
By leasing an EV instead of buying one, you can test things like charging, range, and how an electric car fits into your lifestyle and routine before paying top dollar. A lease gives you plenty of time to take longer road trips, participate in activities, and thoroughly test the technology without buying one for good.
5. Don’t Get Locked in While EVs Are Rapidly Advancing
When you lease a new electric car, you can upgrade to the latest and greatest model near the end of your lease agreement. This way, you’ll easily jump into an updated and more advanced EV with the latest technology and features. And considering how fast things are changing, this is a crucial aspect to consider.
Electric vehicle technology is still in its infancy, even if Tesla’s been selling cars for over a decade. Every major auto manufacturer is busy ramping up production and converting existing lineups into all-electric or hybrid vehicles. If you buy a new EV today, it could be outdated within the next few years, resulting in a lower resale value. Battery technology, electric motors, range, and software continue to evolve and advance rapidly. By leasing, you avoid that risk and have more flexibility when a new model comes along.
Potential Downsides of Leasing an Electric Vehicle
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While there are several benefits to leasing an EV, it does come with some potential downsides. For example, many lease agreements have mileage restrictions, which could prevent you from taking trips you’d typically take. More importantly, if you exceed those limits, you’ll pay more at the end of your lease.
The terms and conditions of many lease agreements prohibit using it for ride-sharing services like Uber or Lyft, and most don’t allow for any vehicle modifications. This means you can’t swap out the stereo, lower your Tesla Model 3, or drastically change the vehicle.
You’ll also need a higher credit score, and you can’t quickly get out of a lease agreement if you lose your job or can no longer make the payments. Speaking of, expect a higher monthly payment on a lease versus buying outright.
Leasing Can Help You Join the Electric Vehicle Revolution
Leasing an EV could still be an excellent route for many. Sure, it’ll cost a little more each month, but you’ll learn about the technology, test the range, and see if an electric car is right for your lifestyle and budget.
You’ll get to enjoy the latest in automotive technology, try fun new features, skip the gas station, and more without forking over a massive monthly payment for years on end.
