Whether to lease or buy is a question many drivers wrestle with. Leasing allows you to enjoy a brand-new car every few years with lower monthly payments, but there are pros and cons to weigh when deciding whether it’s the right choice for your lifestyle, budget and driving habits.
When it comes to electric vehicles, leasing may offer additional benefits. As technology continues to rapidly evolve, leasing lets drivers take advantage of newer features and experience EV ownership without being tied to the vehicle for the long haul.
The Case for EV Leasing
“Although I’m not a fan of leasing in general, I am a fan of leasing an electric vehicle,” said John Paul, AAA’s Car Doctor. “The major reason is that technology continues to evolve. My fear would be that what is cutting-edge today could be a relic in a few years, with poor resale value.”
For example, an electric car purchased two years ago may have had a range of only about 200 miles, compared to newer models, which average 300 miles or higher.
“In addition to range, there are now charging methods that may not have been available a few years ago, such as the option to use the Tesla supercharger,” said Paul.
Leasing an EV also means lower, or no, repair costs. When you lease a new car, the likelihood of a major problem emerging in the first three years is slim. And if repairs are needed, they are likely to be covered under the manufacturer’s warranty.
Other Considerations
Of course, leasing has its downsides. Most dealers cap annual mileage on leased cars, usually between 10,000 and 15,000 miles, and charge fees for exceeding that limit. So, if road trips are a regular part of your lifestyle or you have a long commute, leasing may not be the best fit.
There’s also the decision to make at the end of the lease: return the car or buy it out. Whether that feels like a pro or a con comes down to how much you enjoyed your EV experience.
As for leasing versus buying overall, Paul echoes J. Paul Getty, the late oil tycoon and art collector, who once said, “If it appreciates, I buy it. If it depreciates, I lease it.”
AAA’s Recommendation: Whether you own an electric vehicle or a gas-powered car is up to you – and you should consider lots of factors in making that choice. No matter what type of vehicle you’re choosing, we recommend visiting a dealership, test driving one, and asking as many questions as possible to make an informed decision.
