It’s time to give leasing another look. For the past few years, the car manufacturers cut incentives on leasing during the worst of the pandemic, and then during a shortage of computer chips used in auto manufacturing.

With low supply and high demand, there just wasn’t much need to offer discounts on leasing, or car loans for that matter. Nevertheless, when it comes to electric cars (EVs), leasing remains a practical option, Charlie Chesbrough, senior economist for Cox Automotive said in a recent webinar.

Ben Nelmes, Chief Executive, New Automotive agrees –  “EVs offer substantial financial savings to motorists, and the more you use your car, the more you would save by going electric. However, those who could benefit the most from these savings, such as low income and high mileage drivers are often unable to because of higher upfront costs”.  There is simply a lack of availability of EV’s on the market and second hand EVs are also in relatively short supply right now so prices aren’t particularly affordable. “In terms of buying one upfront, you can get a lease deal to significantly reduce the costs”.

Hence, Leasing an EV in 2024 can be attractive for several reasons:

Lower Monthly Payments

Lease payments are typically lower than loan payments for purchasing a new car. This allows individuals to drive a newer or more expensive vehicle for a lower monthly cost.

Access to Newer Models

Leasing enables you to drive a brand-new vehicle with the latest features and technology. Since lease terms are typically shorter (e.g., 2-3 years), you can upgrade to a new model more frequently, staying current with advancements in automotive technology.

Reduced Maintenance Costs

Lease agreements often coincide with the manufacturer’s warranty coverage, meaning most repairs and maintenance are covered under the warranty. This can result in lower out-of-pocket expenses for maintenance and repairs compared to owning a vehicle outside of warranty coverage.

Minimal Down Payment

Lease agreements typically require a lower down payment or sometimes even no down payment at all, making it easier to acquire a vehicle without a substantial upfront cost.

Tax Benefits for Businesses

For businesses, leasing can offer tax advantages. Lease payments are often deductible as a business expense, potentially lowering taxable income.

Avoiding Depreciation

With a lease, you don’t own the vehicle, so you’re not affected by its depreciation. You simply return the car at the end of the lease term, without worrying about its resale value.

Flexibility

Leasing provides flexibility at the end of the lease term. You can choose to return the vehicle and lease a new one, purchase the leased vehicle at its residual value, or simply walk away.

Predictable Costs

Lease agreements often come with fixed monthly payments, making budgeting easier since you know exactly how much you’ll be paying each month.

Things you should know

It’s essential to consider your specific needs and circumstances before deciding whether leasing is the right option for you. For example, leasing typically comes with kilometre restrictions and fees for excessive wear and tear, which may not be suitable for everyone.

It’s advisable to carefully evaluate the terms of the lease agreement and compare them with other options, such as subscription to a new or used car, to determine the best choice for your situation.

To find the right EV for you, and to understand how entering a lease can impact you, give our team a call at Everything Fleet.