What You Need to Know Before You Lease an Electric Vehicle

Many people believe that when it comes to electric vehicles (EV), the technology is too new, the range is not quite long enough, and the prices are still too high to justify leasing one. The fact of the matter, though, is that all three of these things are changing rapidly. In this article, we’ll talk about the costs and benefits of leasing an EV, as well as why you may want to consider doing so now—even if you live in an area with very little public charging infrastructure today. Let’s get started!

Why lease an EV?

You may want to lease an EV for a number of reasons, from manufacturer incentives to the latest technology.

Tech upgrades can be obtained more quickly

EV technology is improving rapidly, so leasing a vehicle may be a good option if you want to upgrade three years from now.

Certain maintenance issues are not a concern

A concern among those considering an electric vehicle is battery degradation. Range loss and premature battery death can be expensive, but it is less of an issue if you won’t own the vehicle for more than two to four years.

A carmaker’s incentive program

Occasionally, automakers offer lease specials that can offset the cost of monthly payments to customers with very good to excellent credit.

It is likely that you will not have to pay in advance

In contrast to buying a car, leasing does not require a large down payment – if any. This means that you do not have to worry about bringing 10 or 20 percent of the car’s value with you.

How to lease an electric vehicle

There are many electric vehicles available and choosing the best one is the most important step in the leasing process. Consider the range you need and determine the car size that’s right for you before going to the leasing office. The next step is to test out an electric vehicle. If you decide you like the car, then you can make a lease agreement.

1. Know your range

When purchasing an electric vehicle, it is important to keep the driving range in mind. Based on your driving habits, infrastructure, and driving distance, the range of the vehicle can be predicted.

If your daily drive is a lengthy one, it’s best to make sure you are capable of completing it on a full battery charge. Driving range will vary based on many factors, so it’s best to keep this in mind and maintain a reasonable level of charge at all times.

Cars and Driver did an investigation of electric cars and found that their range varied considerably with the shortest being 70 miles and the longest being 320. The median driving range for an electric car in 2021, according to the U.S. The Department of Energy is 234 miles.

2. Consider the car size

After making that decision, the next step is determining what size of car you need. Most car manufacturers offer electric cars in various sizes so you should be able to find something that suits you.

If you mostly drive to and from work and rarely need to haul passengers, a compact car may be enough. But if you regularly carry more than just yourself, look into top electric SUVs.

Should I lease or buy an EV?

There’s no right answer to this question, as both leasing and buying EVs have their pros and cons. Electric vehicles have been steadily decreasing in price, making them more affordable than ever.

In addition, electric vehicles’ range and charging infrastructure are constantly improving, so leasing may give you access to better technology a few years down the road. In the end, you should buy an electric vehicle when your budget and needs allow it.

When you buy an EV, you own it outright. You don’t have to worry about overage fees or wear-and-tear costs that come with leasing. The total cost of the car and the financing will be known from the beginning.

Make sure that, when you buy an electric vehicle, you keep in mind the various cost-benefits associated with this decision. For example, EVs are typically only rated to a finite number of miles and are less apt to suffer damage like tires, brakes, suspension and windows. Instead of having to come up with a back-of-the-napkin total at the end, you’ll know your payment up-front.

Owners of electric cars are able to claim certain federal, state, and local subsidies. Some manufacturers have also been recently granted extension on credits that were exhausted. The annual cost of ownership may be less than if you were driving a car with a gas engine. Plus, the dealership should have more options available to you than if you were leasing.

Insuring an electric vehicle

Whatever the type of car you have, it’s still crucial to take out an insurance policy. Insurance prices are usually higher on electric cars. Two of the many causes for the differing car insurance prices are the increased repair costs for the cars and their expensive technological components.

Electric vehicles will have different insurance premiums based on the make, model, and year — as well as your driving history. Compare insurance rates and prices with different companies to save money. You may be eligible for discounts such as discounts for being a safe driver, or a good student or if you need to buy a whole bunch of insurance.

The less expensive type of electric car insurance is called pay-per-mile plans, as these are less costly because usage is limited to these vehicles. On the other hand, pay-per-mile plans tend not to be suitable for drivers who make only occasional short trips.

If your insurer offers usage-based insurance programs, you can potentially save money. It’s worth it, but only if you’re a safe driver. Usage-based programs track your driving behaviour, so you’ll need to be responsible and adhere to all the rules.

The bottom line

There are many advantages to purchasing an electric vehicle, including top-of-the-line technology, no need to worry about certain maintenance issues, as well as numerous manufacturer incentives. It involves knowing your range, evaluating the car size, testing the EV, and negotiating the lease.

It is important to consider your budget and needs before choosing a leasing or purchase option for an EV.