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Apparently, People Are Leasing Their EVs Rather Than Buying Them

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2017 Chevrolet Bolt

Generally, when it comes to leases, luxury vehicles hold the majority, with most people who want more mainstream daily drivers just buying their vehicles outright.

However, when it comes to electric vehicles, apparently the rule is exactly the opposite: most people who get the priciest EVs (aka Teslas) seem to want to buy them outright, while the more mainstream, less expensive EVs are mostly leased.

Choices, Choices: Should you buy or lease your next vehicle?

There are a number of reasons for this.

One of the biggest of these is that the federal tax credit, which normally is applied toward the buyer’s income taxes, would be immediately used, as the institution offering the lease generally deducts the amount of the tax credit from the total amount to be financed, significantly reducing monthly payments. In addition, not every electric car buyer can use the credit, depending on their financial situation.

Then, electric vehicles have quickly been improving, with better and longer-range models entering the market frequently – as Green Car Reports points out, from 2011 to 2013, the electric range of the mass-market vehicles was between 62 and 84 miles, while today that range now goes from 110 to 238 miles.

Max Range: The Chevy Bolt delivers an EPA-estimated 238 miles of range

Finally, there comes the point that as electric vehicles age, their batteries degrade, particularly in less expensive EVs. For example, while models that use liquid battery cooling degrade more slowly, the Nissan LEAF, which has used passive air cooling, loses considerably more of its range, depending on the climate.

We can only imagine that, as battery technology improves and prices come down, these issues will dwindle, and as EVs become truly mainstream, it could come to look like the current market for gas vehicles.

News Source: Green Car Reports, Bloomberg