Not everyone is ready for an electric vehicle in the driveway, but times are changing. While most people have bought or leased a car at some point, do the same principles apply to an EV? When is it better to buy an electric vehicle instead of leasing an EV? Check out the pros and cons below and check out the guide to buying an EV for more information.
Why you should buy an electric vehicle or electric car
Electrek did a deep dive on the question of buying or leasing an electric vehicle. It can be overwhelming with all of the market options, such as the Tesla Model Y or the Ford Mustang Mach-E. Consider the range and price you might need and go from there. At some point, the question of paying for your new vehicle will come up. So, do you want to lease or buy an electric vehicle?
One of the significant benefits of modern electric vehicles is that automakers can update cars over time. Over-the-air updates are available so your EV can be fixed or improved from home. In addition, EVs have fewer mechanical parts that theoretically require less maintenance.
Electric cars tend to remain in demand, even if it is used. If you can pay the large amount upfront to buy an EV, you can likely resell it down the line for a reasonable amount. Both battery electric vehicles and plug-in hybrids are eligible for the federal tax credits, up to $7,500 in some cases. Buying an EV means you won’t be limited by mileage, either.
The cons of buying an electric car are important to note. It costs a lot more upfront to buy than a lease, like a gasoline-powered car. You are also responsible for maintenance down the line, whatever that may be.
Why you should lease an electric vehicle or electric car
The typical benefits of a lease exist if you go to lease an EV. Buyers are less committed to the car long-term, and you can upgrade at the end of the lease. You might be able to buy the lease out, but that option doesn’t exist with all cars. Some dealers require very low or zero down payments. It depends on the buyer’s or leaseholder’s financial situation, like a conventional vehicle.
There are cons to leasing an electric vehicle, such as being tied to a car you don’t like. If the range ends up being too short or your EV takes too long to charge, it might not fit your lifestyle. If you are locked in a lease, you might be stuck in it for a while. A lease also does not usually get the benefit of the federal tax credit either. The EV will also be tied to a limited mileage, usually around 15,000 miles.
Take advantage of whatever deals might be available
One option might make more sense depending on when you lease or buy an electric vehicle. You might be able to take advantage of a year-end deal if a new version is coming out. Similarly, a new vehicle to the market might have a better lease deal, making it a better financial decision. More electric cars, trucks, and SUVs hit the market every day.
Check out some of the most popular electric vehicles hitting the market in 2022 to stay informed. As the new 2023 vehicles start to roll out, there might be good deals on outgoing models to get you into a brand new EV. No matter if you buy an electric vehicle or lease one, be prepared for strangers to ask you all sorts of questions.