Leasing an EV

Thinking about going electric, but not sure whether to buy or lease? Leasing has a lot of advantages, and it's more popular than ever: Currently about half of new electric vehicles are leased. Here are some key things to keep in mind when making your decision.

  • Check out the available electric utility incentives to see whether you can further reduce your leasing costs. Typically the lease term must be at least 2 years. Additional eligibility requirements may apply, so don't skip the fine print. Some dealers can apply incentives at the time of sale, further reducing your down payment or monthly bills.

    Additional resources
    See incentives

  • The plug-in EV market is rapidly growing as more models are introduced, battery range increases, and technology improves. In some cases, that can cause high depreciation for new EV purchases. Incentives on new vehicles can also impact EV market values. Leasing allows drivers to try out an EV for a few years without the risk of depreciation as the market evolves.

    Additional resources
    Consumer Reports: Why leasing an EV is a better deal  

  • In most cases, when you lease a vehicle for 2 to 3 years, any major maintenance issues are covered under manufacturer warranties.

    Additional resources
    EV maintenance costs

  • Just like leasing a gas-powered car, an EV lease typically comes with an annual cap on mileage. 10,000 to 15,000 miles is typical, with steep mileage fees for anything higher. If you drive more than that, you may get more bang for your buck by purchasing the car.

  • It's expensive to get out of a lease. That's true for any car, but for an EV, you should consider this part more carefully since driving an EV is a different experience than driving a gas-powered car. Do a test drive to confirm that you like how the car drives, so there aren't any surprises after you sign the paperwork. Also consider whether you're expecting any lifestyle changes in the next few years. If you'll be moving somewhere without reliable charging access, or driving a lot more miles than usual thanks to a new job, a lease might not be right for you.

  • Everything is negotiable. If you do your research ahead of time, you can negotiate with confidence. Ask questions and don't be embarrassed to request information in writing.

    Additional resources
    Edmunds: 10 steps to get a good deal  
    Lease Guide: Car leasing overview