If you intend to switch to an electric car, you need to decide whether to buy or lease the vehicle. However, to make that decision, there are some factors you need to consider. This article discusses the benefits of leasing an electric car.
First, we will look at whether you can lease an electric car.
Can you lease an electric car?
The answer is yes. Some companies lease out electric vehicles with a wide range of models to choose from. Your options for a lease car just increased recently with Hertz’s deal to purchase 100,000 Model 3 electric vehicles from Tesla. Apart from that, Hertz is committed to replacing its half a million vehicle fleet with electric cars to reduce its carbon footprint.
However, before you sign the lease agreement, are there reasons to lease an electric car instead of an outright purchase?
Is leasing an electric car better than buying?
There are several arguments for leasing an electric car. Some of them are considered below.
Avoid the initial high cost of electric vehicles
Some people want to switch to electric vehicles because of the many benefits. However, they cannot do so due to the higher costs of electric cars compared to their gasoline counterparts. Leasing an electric vehicle is a way to drive a zero-emission car without forking out a large amount of money. You are charged a monthly fee, or otherwise, as dictated by the contract, making the payment easier on your wallet.
Like any machine, electric vehicles depreciate as the period of ownership increases. However, by leasing, the cost of depreciation is shifted to the car owner.
Electric vehicles experience battery degradation with time, which affects the range you can get out of them. By leasing, which confers temporary ownership, you can select a car that is still new so you can get the most out of the battery. The car owners have to deal with the battery problems.
Freedom to choose
Since leasing requires less commitment than buying, you will have the freedom to use the model you want. As more companies, including traditional automakers and new startups, release new models, you can change your leased electric car as much as you wish. This means you can always drive the latest and greatest electric vehicles.
For example, in the space of three years, electric cars have gained longer ranges significantly. Since cars are long-term investments, people who bought their cars three years ago will be stuck will lower ranges while picking up any model you want on a lease.
This freedom to choose helps when you want to decide which electric vehicle to buy. You can lease a few models to see which is the best fit for you.
Sometimes, owning an electric car might not be the best arrangement for you. For example, if your job requires that you move from city to city, it could be a hassle to dispose of your car or take it to your new base each time. You might also be anticipating a move from where you currently reside. Canceling a lease is relatively easy, and you can lease another electric car when you settle down at your new location.
How much does it cost to lease an electric car?
Just like ICE cars, there is a wide range of electric vehicles to choose from. You are basically limited by your finances and expectations.
If you are on a budget, you can lease a new Chevy Bolt for as low as $298 a month or a Nissan LEAF for only $199. You could also go for the Hyundai Kona at $239 per month.
Rebates offered by the government can help you reduce the cost. For example, California provides a Clean Vehicle Rebate that is worth up to $2,000, in addition to the Clean Fuel Reward that adds $1,500.
How does leasing an electric car work?
Leasing an electric car is no different from any other car. The lease typically lasts between two and four years, after which you return the car. If you keep the car in good condition and stick to the agreed annual mileage cap, you do not pay anything at the end of the lease.
For many people who want to drive electric vehicles, leasing allows them to avoid the high costs and enjoy the freedom of temporary commitments.