Switching to an EV can be a huge consideration, and trying to take in all the necessary factors to make your decision can be stressful.
As it turns out, leasing an EV can be the perfect way to alleviate the stress of making the switch! Here are 5 aspects to keep in mind if you’re on the fence about leasing an EV.

1. Consider battery degradation.
Electric vehicle batteries degrade over time, which can affect the range of the car. If you’re leasing an EV, you’ll typically be responsible for any battery degradation that occurs beyond normal wear and tear. This could result in a fee at the end of your lease.
According to this article, the average battery loses 2.3% of its capacity per year. However, degradation is not linear, and battery technology is only getting better with time, meaning future EV batteries will degrade less. By following tips like avoiding extreme temperatures, maintaining moderate battery charge levels, and using DC fast charging sparingly, you can minimize degradation and avoid excess wear and tear charges at the end of your lease.

2. Remember the EV tax credit!
There are federal and state tax credits available for purchasing an electric vehicle. However, these credits may not be available to lessees. Be sure to factor in the potential tax savings when deciding whether to lease or buy.
The new EV tax credit, also known as the clean vehicle tax credit, can be a significant incentive for purchasing an EV. It can be applied directly to the purchase price, giving you an immediate discount of up to $7,500 depending on the vehicle (learn more about that here). This can significantly reduce the upfront cost of an EV.

3. Resale value is a non-factor.
When you lease an EV, you’re not building equity in the car. The resale value of the car is irrelevant to you as the lessee. This can be a good thing if you’re concerned about the future value of electric vehicles.
Traditionally, a car’s resale value is a significant factor for car buyers. It represents the money you get back when you sell the car. However, when you lease an EV, the resale value doesn’t matter because you’re not buying the car. This can be an advantage if you’re unsure about the future value of electric vehicles themselves. You won’t be stuck with a depreciating asset if technology advances rapidly.

4. Leasing is future-proof!
Electric vehicle technology is advancing rapidly. By leasing an EV, you can ensure that you’re always driving the latest and greatest technology. This can be a good option if you want to be sure you’re not getting stuck with outdated tech.
According to a 2017 article in The Florida Times-Union, a key factor driving the popularity of leasing is consumers’ desire to stay ahead of the curve with new technology. This is especially true for the rapidly evolving electric vehicle market. By leasing an EV, you can upgrade to a newer model every few years, ensuring you’re always behind the wheel of the latest advancements in battery range, features, and efficiency.

5. Try before you buy!
Leasing an EV is a great way to try out this new technology and see if it’s a good fit for you. If you’re not sure whether you’re ready to commit to buying an EV, leasing is a low-risk way to give it a try.
Deciding whether to lease or buy an EV depends on your priorities. Leasing allows you to test the EV lifestyle with a lower monthly payment, but you won’t own the car and can’t customize it. Buying offers ownership and customization freedom but requires a higher upfront cost and potential for depreciation. This makes leasing a good option for those who want to try out electric vehicles for a few years before committing to buying one.
Leasing an electric vehicle can be a great way to get behind the wheel of a new EV without the long-term commitment of buying. However, it’s important to weigh the pros and cons carefully before deciding.
Sources:
https://www.caranddriver.com/auto-loans/a43168092/residual-value-lease
https://www.bankrate.com/loans/auto-loans/lease-or-buy-electric-vehicle