Leasing vs. Buying an Electric Car: The Advantages of Leasing

When it comes to purchasing an electric car, whether you should buy or lease depends on several factors. While traditional arguments may apply to both conventional and electric vehicles, leasing offers unique benefits that are particularly relevant in the context of electric vehicles.

Why Leasing May Be Better for Electric Cars

One compelling reason to consider leasing an electric car is the concern for reliability and resale value over time. Electric vehicles (EVs) are still relatively new and may face challenges in terms of reliability and rebuild value in the long run. Leasing mitigates these risks, as the financial burden is shared with the leasing company, resulting in lower costs over time.

I recently purchased a lease return Mercedes Electric for approximately 40 cents on the dollar. It had a guarantee and only 13,000 miles driven. The initial 2 cents per mile depreciation was handled by someone else, leaving me to deal with 25 cents per mile depreciation. Over time, I aim to reduce this cost to 10 cents per mile, resulting in a total cost of ownership that includes depreciation, insurance, electricity, service, and maintenance at 25 cents per mile.

If you're not under an emotional necessity to have a new car, leasing is the better financial option. Leasing allows you to benefit from the latest technology without worrying about the financial burden of depreciation.

Lease a New Car for Technological Advantages

Leasing a new car, especially one with advanced technology like an electric vehicle, offers significant advantages. New technology in electric vehicles is developing rapidly, and leasing allows you to stay current with these advancements while minimizing the impact on your budget.

Several key points support the argument for leasing:

Protection Against Accelerated Depreciation: Suppose, for example, you lease a Tesla for three years with a guaranteed buyout price of $30,000. If Tesla were to go out of business and demand for used Teslas drops significantly, making your car worth only $1,000 rather than the guaranteed amount. In this scenario, you would not be responsible for a significant loss on the car's value. The leasing company would take the hit instead. If the car were in high demand and sold for $40,000 at the end of the lease, you could either purchase it at the lower price or gain $10,000 in appreciation. Technological Upgrades: Every three years, you get an upgrade that minimally impacts your budget. This is particularly beneficial for electric cars, which are continually evolving in terms of technology, range, and charging infrastructure. Financial Benefits: Leasing enables you to enjoy the latest tech advancements without a large upfront investment. For example, if you purchase a car and then face unexpected financial difficulties, you may end up with a car worth only $1,000 when it was originally worth $30,000. However, if you lease, you avoid this significant loss.

Personal Insight and Expertise

I have extensive knowledge in this area, having researched and managed similar scenarios multiple times. Leasing is not just a financial decision but also a strategic one. It allows you to experiment with new technologies and drive trends in the market.

For those who are hesitant, consider leasing as a way to stay at the forefront of electric vehicle technology without the burden of significant upfront costs. Leasing offers a flexible and cost-effective solution for those interested in the evolving world of electric cars.

Always, always, always lease a new car, especially one with cutting-edge technology like an electric vehicle. The financial and technological benefits make it a smart choice for anyone in the market for a new car.