The use of electric vehicles has increased dramatically in recent years, all thanks to the present White House administration. From January through June 2022, it is anticipated that EVs and hybrids would account for 4.5 and 6.6 percent of new registrations, respectively.
Is it better to buy or lease your future electric vehicle (EV) outright? Each method has advantages and disadvantages. In this post, we will compare them both.
Ship a Car, Inc is a known company in shipping vehicles from one location to another has also compared these 2 options on its website at https://www.shipacarinc.com/should-i-buy-or-lease-an-electric-car/.
Pros and cons of buying an electric vehicle
You will save money by buying. Consumer Reports claims that generally speaking, two consecutive three-year leases will be thousands of dollars more expensive than purchasing and keeping a car for the same six-year term (either with a loan or with cash).
There is a limit on the annual mileage you can drive while leasing a vehicle (often 10,000-12,000 miles). You might have to spend a lot of money on fees if you exceed that cap. In addition, if the vehicle is damaged when you return it, you can be hit with exorbitant fees.
Pros:
- You can save on the cost of gas
Charging a battery is much cheaper than buying gas and leads to considerable savings.
- You may get tax credits
You may get a tax credit of as high as a maximum of $7,500.
- You will reduce the impact on the environment
EVs can significantly reduce your emissions compared to gas-powered vehicles.
- You can enjoy the higher performance
EVs are much quieter and a pleasure to drive.
Cons:
- Higher upfront costs
You have to shell out a big amount of money as an upfront cost.
- More expensive to insure
The insurance premium is pretty high for EVs.
- Limited battery life and also long charge times
Due to this reason, a long drive can be risky.
- Higher utility costs
Battery charging will increase your utility bill.
Pros and cons if you lease an electric vehicle
You can drive a brand-new car while maintaining a fixed monthly payment schedule for the duration of your lease by leasing an electric vehicle. If you want to lower your emissions while driving, but are not necessarily able to afford the hefty list price that comes with these engineering marvels of the contemporary era, this is a fantastic option.
Pros:
- Save your money on the upfront cost
This is the biggest plus point.
- Warranty protection
You are covered by the manufacturer’s warranty.
- Chargers included with your deal
You also get a charger along with your EV.
- Low tax for business leasing
Due to low emissions, a very low tax is charged.
- No depreciation
You need not be concerned with depreciation.
Cons:
- Limited choice
No luxury car model is available for EVs.
- Price
The leasing cost of EVs is much higher than any standard car.
- No option to buy
You cannot buy an EV after the end of the lease period.
Now it is easy for you to make your decision easily based on your priorities.