The Pros and Cons of Leasing vs Owning an Electric Vehicle

In this article, we’ll take a deep dive into the pros and cons of leasing vs owning an EV to help you make an informed decision.

Leasing an EV

Leasing an EV means that you pay a monthly fee for a set period (typically 2-3 years) to use the vehicle, but you don’t actually own it. Here are some of the advantages:

• Lower monthly payments: Leasing an EV typically has lower monthly payments than buying one, as you’re only paying for the depreciation of the car over the lease period. This means you can upgrade to a better EV for the same price.
• No worries about resale value: Since you don’t own the car, you don’t have to worry about the resale value. This takes the burden off your shoulders, and you can simply return the car when the lease is up.
• Low maintenance costs: Most lease agreements come with maintenance included, which means you will save a lot when it comes to maintenance and repairs since the leasing company takes care of that.

However, there are some downsides to leasing an EV, including:

• No ownership: You don’t own the car, which means you’re limited in how you can customize the vehicle or make upgrades to it.
• Mileage restrictions: Most lease agreements come with mileage restrictions, which means you can only drive a certain number of miles without paying extra fees. This can be a problem if you have a long commute or like to take road trips.
• Penalties for damages: If the car has sustained damage, you will need to pay for the repairs when you return the car. This can be a problem if you’ve been involved in an accident or if the car has been damaged by something out of your control.

Owning an EV

Owning an EV means that you purchase the car and you’re responsible for all the costs associated with it. Here are some of the advantages:

• Ownership: You own the car, which means you can make customizations, add accessories, and upgrade the EV as much as you’d like.
• No mileage restrictions: Since you own the car, there are no mileage restrictions, which means you can drive as much as you’d like without worrying about extra fees.
• No penalties for damages: You are responsible for maintaining and repairing the EV, but you won’t be penalized for any damages when you return the car since you’ll be keeping it.

However, there are also downsides to owning an EV, including:

• Higher upfront costs: Buying an EV has a higher upfront cost than leasing one, and you’ll also have to pay for maintenance and repairs out of pocket. This can be a major financial commitment.
• Depreciation: EVs depreciate faster than gas cars, which means they lose their value quickly. This is something to keep in mind if you ever decide to sell the car.
• Technology upgrades: Technology is advancing rapidly in the auto industry, and if you own an EV, you may quickly find yourself with outdated technology that you can’t upgrade without having to buy a new car.

Key Takeaways

• If you want low monthly payments and don’t want to worry about resale value, leasing an EV may be the best option for you.
• If you want ownership, the flexibility to customize the vehicle, and no mileage restrictions, owning an EV may be the best option for you.
• However, both options come with their own set of pros and cons, so it’s important to weigh them carefully before making a decision.

Industry Statistics

• A study by AAA found that the average cost of owning a gas car is $746 per month, while the average cost of leasing a car is $411 per month. This means leasing can be a more affordable option for many people.
• According to EVvolumes.com, a website that tracks electric vehicle sales, the sales of electric cars worldwide grew by 43% in 2020 despite the COVID-19 pandemic.
• Deloitte’s Global Automotive Consumer Study found that 61% of Americans are interested in buying an electric car in the next five years, which shows that the demand for EVs is increasing rapidly.

Now that you know the pros and cons of leasing vs owning an EV and have some key statistics to back it up, you’re ready to make an informed decision. As always, make sure to do your research, weigh the pros and cons, and choose the option that best fits your lifestyle and budget.