Nerdwallet Provides 5 Reasons to Lease an EV Over Buying One
【Summary】Considering making the switch to an electric vehicle? Getting tech upgrades faster and not worrying about depreciation are two key reasons to settle on a lease.
There's a lot to like with modern electric vehicles. Battery-powered automobiles now have usable ranges, don't skimp out on creature comforts, and can be had for a reasonable price. And thanks to Telsa, electric vehicles were some of the first cars on the road to come with semi-autonomous features. But before you head over to your local dealership or place your order for an EV, here are five reasons Nerdwallet claims you should choose leasing over purchasing an EV.
Before we get into the five points, we should point out that leasing isn't for everyone. And while the outlet provides five good reasons to choose leasing over purchasing an electric vehicle, your needs may differ and purchasing a car might work better for you.
You Can Get Tech Upgrades Faster
When it comes to gasoline cars, going from one year to another usually brings minimal changes. One vehicle may get a few updates, but they're usually pretty minor. That, though, isn't the case with electric vehicles. The 2018 Nissan Leaf is a prime example of how different new models can be over old ones.
"But the technology going into EVs is at a rate I've never seen before," said Scot Hall, executive vice president of operations for Swapalease, which helps consumers find leases to take over.
By leasing a vehicle, you're putting yourself in a better position to receive better technology faster. If you purchase an electric vehicle, you're putting yourself into a corner when it comes to range, battery life, charging time, and other advancements that might change from year-to-year.
Being able to avoid depreciation on any vehicle is a hallmark trade of leases. But it's even more truer for electric vehicles. As Nerdwallet reports, prices, on average, for 2016 electric cars has depreciated roughly 52 percent from the sticker price in just the first year. That's a massive decrease in price that consumers will have to swallow if they purchase a vehicle.
The rapid amount of progress in electric vehicles probably has something to do with the way the machines depreciate. And if you're not sure about leasing and are leaning towards purchasing an EV, buying used might be a better option, as used electric vehicles are much better value propositions.
No Need To Worry About Battery Issues
Let's face it, mass-produced electric cars are still in their infancy and problems are bound to happen. The most worrying aspect of EVs are the lithium-ion batteries that help recharge and disperse electricity. But when you lease an electric car, you don't have to worry about battery degradation.
"The questions are how much degradation, how fast and what is covered under the warrant," writes Fred Lambert, editor-in-chief of Electrek. According to him, General Motors' owner's manual claims that the Chevrolet Bolt could lose as much as 40 percent of its battery life and potency over the eight-year/100,000-mile warranty coverage.
Reap All Of The Incentives
Incentives are one of the major perks associated with EV ownership and that rings true for other countries, as well. As the outlet claims, individuals in California are eligible for a $2,500 cash rebate and can even get up to two rebates for a total of $5,000. Automakers, though, also offer hefty cash bonuses and specials on leases for EVs. Together, rebates and incentives can help bring lease prices down to remarkable levels.
Bonuses For Being Loyal
As someone that came from a Nissan-dominated house, I know that brand loyalty is a thing of the past as automakers have been forced to sell good vehicles that compete with one another better than before. But the outlet claims that being loyal to a specific brand pays off with bonuses. Hall claims that these bonuses are even better for electric vehicles.
Consumers coming off of a lease are in a great position to negotiate, as staying with a current brand can bring better bonuses. Moving to a new brand, though, could also bring some good-looking bonuses to the table, which is something to consider when looking into leasing an EV.
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
Volkswagen Announces EV Plants in China to Compete With Tesla
EVs Expected to Account For Half of New-Car Sales by 2040
Germany Opens First Electric Highway to Charge Hybrid Semi-Trucks
Illinois Becomes Latest State to Charge EV Owners With Annual Fee
May Mobility to Begin Testing Autonomous Shuttles in Rhode Island
General Motors Holding Talks to Sell Lordstown Factory to Startup Workhorse
Honda and Toyota Scrambling to Find Funds to Develop EVs, New Tech
Tesla Claims Affordable Autonomous Cars Aren’t Possible Without China
- Waymo to Outfit its Driverless Vehicles in a Former Detroit Axle Factory
- Waymo Develops its Own Advanced 3D Lidar for Self-Driving Vehicles, Will Offer it to Third Parties
- The Trump Administration Says Ending the EV Tax Credit Will Save Taxpayers $2.5 Billion, Automakers Want it Extended
- Amazon Unleashes In-car Delivery Service to Ford and Lincoln Vehicles
- General Motors Officially Developing an Electric Pickup Truck
- Phantom Auto Expands to Remote-Control Trucks, Completes Series A Funding
- FedEx Unveils Autonomous Bot for Quick, Last-mile Deliveries
- BMW Builds its Own IT Platform to Process Data From its Autonomous Vehicles
- Next-Gen Fiat 500 Poised to Go All Electric
- Tesla Gigafactory 3 Construction in Shanghai is 'Ludicrously Fast'