Is it Better to Lease an Electric Vehicle?
Electric cars are becoming increasingly popular for environmental reasons, lower costs of maintenance and fuel savings. However, there are expenses involved with setting up a charging station and fluctuating charging rates. These may have you considering leasing an EV instead. Here are some points you may find useful.
If you value technology and new innovations, perhaps leasing is a good option for you. Lease periods on electric vehicles are shorter, roughly two to four years. This means you could access the latest technology and then upgrade to a newer version once the lease is up more easily. In addition to this, there are lower payment amounts when leasing as opposed to when purchasing a car.
Be Aware of Credit
When you purchase an EV, you are eligible for a tax credit, which can help with the purchase of the car. However, when leasing, it is the company that is entitled to the credit, which implies you often miss out.
Some dealerships will offer reduced lease rates for their customers because of this credit, but they don’t have to. Check with the company you’re thinking of leasing from.
An electric car loses its value faster than gas vehicles; this is because the tax credit mentioned above lowers its price by a lot. In three years, an EV is usually worth 50% of its original price. When leasing, this is usually factored into the agreement.
There will be restrictions on how many miles you can drive the car and how much damage can be inflicted. As a result, you won’t need to deal with its depreciation, unless you exceed the otherwise stated limit. The company you lease from will handle the loss.
With technology ever advancing, the battery life on your EV will slowly lose its range if you are buying the car. As a result, the vehicle’s value will have declined considerably if you decide to sell it later. If you lease, however, you can avoid this issue.
If you are in the area and are looking to lease, you can call or visit us to discuss our policy on leasing.