Electric cars are becoming more popular and affordable thanks to their lower running costs, lower emissions, and advanced technology. Leasing an electric car can be a smart option for those who want to enjoy these benefits without committing to a long-term purchase. However, leasing an electric car also has some challenges and pitfalls you must be aware of before signing the contract. We will explain how to lease an electric car, what are the pros and cons of leasing, and what are the best lease deals available right now.
What is leasing an electric car?
Leasing an electric car is similar to renting a car for a fixed period of time, usually between two to four years. You pay a monthly fee to the leasing company, which covers the depreciation of the car, the interest rate, and other fees. You also pay a down payment at the beginning of the lease, which reduces your monthly payments. At the end of the lease, you return the car to the leasing company and walk away, or you can buy the car for its residual value, which is the estimated value of the car at the end of the lease.
Leasing an electric car has some advantages over buying one. For example:
- You can get a newer, more expensive electric car for a lower monthly payment than buying one.
- You can enjoy electric cars' latest technology and features without worrying about obsolescence or battery degradation.
- You can take advantage of tax credits and incentives that may be available for electric cars in your state or region.
- You can avoid the hassle of selling or trading your electric car when you want to switch to a different one.
However, leasing an electric car also has some disadvantages that you need to consider. For example:
- You have a limited mileage allowance per year, usually between 10,000 to 15,000 miles. If you exceed this limit, you will have to pay extra fees per mile at the end of the lease.
- You have to maintain the car in good condition and follow the manufacturer’s service schedule. If you damage the car or neglect its maintenance, you will have to pay for repairs or penalties at the end of the lease.
- You do not own the car and cannot customize it or modify it as you wish. You also must pay hefty fees or penalties to transfer or terminate the lease.
- You may not get the full benefit of the federal tax credit for electric cars, which is up to $7,500, depending on the battery size and manufacturer. The leasing company may claim this credit and pass some or none of it to you as a discount on your lease.
How to find the best lease deal for an electric car?
Finding the best lease deal for an electric car depends on several factors, such as your budget, driving needs, credit score, and location. Here are some tips and tricks to help you get the best deal possible:
- Do your research: Compare different models and brands of electric cars and see which ones suit your preferences and needs. Check their features, specifications, reviews, ratings, safety, reliability, and customer satisfaction. Also, check their driving range, charging time, battery warranty, and availability in your area.
- Shop around: Contact different dealerships and leasing companies and ask for quotes on the electric cars you are interested in. Compare their prices, terms, conditions, fees, incentives, and discounts. Negotiate with them to lower your monthly payments, down payment, interest rate, or other charges. You can also use online tools like CarGurus or Carfax to find and compare lease deals near you.
- Look for incentives: Many manufacturers, states, utilities, and organizations offer incentives for leasing electric cars. These can include cash rebates, tax credits, discounts, free charging stations, access to HOV lanes, etc. Make sure you qualify for them and ask the dealer or leasing company to apply them to your lease.
- Time your lease: The best time to lease an electric car is when there is high supply and low demand. This usually happens at the end of the month, quarter, or year when dealerships and leasing companies are trying to meet their sales quotas and clear their inventory. You can also look for seasonal or promotional offers that may be available during certain holidays or events.
- Please read the fine print: Before signing the lease contract, make sure you understand all its terms and conditions. Pay attention to details like mileage allowance, wear and tear policy, maintenance requirements, insurance coverage, early termination fees, etc. Ask questions if anything is unclear or seems unfair. Only sign something once you are satisfied with everything.
What are some examples of electric car lease deals in 2023?
Here are some examples of US electric car lease deals available in August 2023. Note that these deals may vary depending on your location, credit score, and availability. Always check with the dealer or leasing company for the latest and most accurate information.
- 2024 Nissan Leaf: You can lease this compact hatchback with a range of 149 miles for $239 per month for 36 months, with $4,339 due at signing. This offer is valid until September 5.
- 2023 Subaru Solterra: You can buy this crossover with all-wheel drive and a range of about 220 miles with 0.9% financing. This offer is valid until August 31.
- 2023 Kia EV6: You can lease this sleek and sporty crossover with a range of up to 300 miles and a fast-charging capability for $399 per month for 36 months, with $4,999 due at signing. This offer is valid until August 31.
- 2024 Audi Q8 e-tron: You can lease this luxury SUV with a range of 222 miles for $639 per month for 36 months with $6,533 due at signing in New York, or $719 per month for 36 months with $5,609 due at signing in California. These offers are valid until August 31.
- 2024 BMW iX xDrive50: You can lease this premium SUV with a range of 300 miles for $799 per month for 36 months, with $6,429 due at signing. This offer is valid until September 4.
Conclusion
Leasing an electric car can be a great way to enjoy the benefits of driving an EV without committing to a long-term purchase. However, leasing an electric car also has some challenges and pitfalls that you need to be aware of before signing the contract. To find the best lease deal for an electric car, you need to do your research, shop around, look for incentives, time your lease, and read the fine print. By following these tips and tricks, you can get the best deal possible and drive away in your dream electric car.
