Buy or Lease an EV?
There are advantages to both options.
Shopping for an electric car is not much different from shopping for a gasoline car. There are a lot of decisions to make. Sedan or crossover? Moonlit forest or platinum pearl? Gone are the days of blue or white. Heated seats? Lease or buy?
The all-electric Nissan LEAF
Many drivers decide to lease electric vehicles (EVs). According to Bloomberg, 80% of all-electric vehicles and 55% of plug-in hybrid vehicles are leased. Overall, the lease rate in the United States is only about 30%. Why do so many drivers lease EVs?
First, EV technology changes rapidly. Right now, you can drive a Chevy Bolt about 238 miles on a single charge. In the future, you will be able to travel 300, 400 or even 500 miles before you have to plug in. Like your cell phone, you may want to trade up for the latest and greatest model in a few years.
A new car drops in value the minute you drive it off the lot—this is not big news for most car shoppers. According to Consumer Reports, the typical new car loses close to 22% of its value in the first year. EVs depreciate at a faster rate than their gasoline cousins. If you’re concerned about resale, consider leasing or buying a used EV. On the flip side, if you’re someone who likes to buy a car and keep it 8 to 10 years, remember EVs cost far less to maintain over the life of the vehicle. You never have to change the oil—because there is none. Brakes also last longer in an EV because regenerative braking causes less wear.
2018 Mitsubishi Outlander Plug-in Hybrid EV
You can pick up a used EV for a good price and many are still under warranty. Most EVs also have an 8-year, 100,000-mile battery warranty. Plus, EVs have fewer moving parts to wear out or break.
There are advantages to buying new. You get the latest battery and charger technology and a full factory warranty. You also may be eligible for a federal tax credit of up to $7,500.
For some drivers, a vehicle gets you from point A to point B. Others are more passionate about their car and want a certain brand, color and features. Either way—buy or lease, used or new—there's a lot to love about EVs! Be sure to visit the EV Rider section of energy2030together.com for more stories about the latest on electric vehicles.
Until next time,
MGE New Market Manager