Three Quarters of EV Drivers Don’t Buy Their Cars
Beyonce would be disappointed in electric car drivers. According to CNBC, while electric car drivers love their vehicles, most of them simply aren’t putting a ring on it, with 75% of all EV drivers leasing their vehicles (this number excludes Tesla, which isn’t really forthcoming with any specific numbers, and whose unique sales model makes it so leasing data is not shared with industry trackers).
While this is a light improvement on the 80% of EV drivers in 2013 and 2014, this percentage is far, far more than leasing numbers in the car sales industry as a whole, which comes in at 28%. EV leasing even beats luxury car leasing, which is much more common than the industry as a whole at 49.5%.
So, why are EV drivers avoiding commitment?
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The main reason, CNBC thinks, is it doesn’t make long-term sense. To begin with, electric vehicle technology has been rapidly improving over the past several years, with range increasing from year to year. With technology advancing so rapidly, it doesn’t make much sense to commit financially to a car which will soon be outclassed.
On top of that, leases on EVs can be significantly less expensive than leases on more mainstream vehicles. This is because any state or federal incentives on the sale of EVs generally go to the owner of the vehicle—in the case of leasing, the dealer. While a driver buying an EV has to wait until the end of the year to reap these benefits, the dealer can apply them to the lease payment right away.
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Besides, EVs are generally more expensive right now. Perhaps, once technology advances past a certain point and EV prices come down, EV drivers will warm to the prospect of actually purchasing their vehicles.
News Source: CNBC