Published on August 13th, 2014 | by Steve Hanley
It’s Cheaper To Lease A New EV Than Buy A Used One
According to Wired, it costs less to lease a new EV than to buy a used one. Why? Let’s follow the money trail.
The federal government allows a tax credit of up to $7500 when you, the consumer, purchase a new EV. But if you lease that EV, the credit goes to the manufacturer, not to you. That’s why you see such attractive lease deals available on EV’s like the Nissan LEAF and the Chevy Volt. Today, you can lease a LEAF with $2500 down for only $199 per month.
There aren’t many used EV’s out there for sale. Only the LEAF has been on the market long enough for some off lease used cars to be available. Chevy Volts will be winding up their 3 year lease period later this year. With so few cars on the market, there is very little data to calculate resale values accurately.
Right now, Kelley Blue Book estimates a 2012 Leaf with 33,000 miles on the odometer will sell for $15,000. If you put down 10 percent on a 4-year term at 4 percent interest, you will end up paying $305 a month – $100 more than the cost of leasing a brand new one. Plus, you have to figure in to your calculations how the technology has changed since that 2012 car was built and the cost of battery replacement somewhere down the line. No wonder so many people are deciding to just lease a new vehicle