Should you buy or lease an EV?

Should you buy or lease an EV?

The financial aspect of driving a car is changing, and quickly!

Just a decade ago, the concept of leasing a car was reserved for the relatively wealthy, who simply wanted to be able to trade in their vehicle every few years for a newer, faster model.

But cars are changing — they’re no longer simply machines designed to get you from point A to point B. These days, they’re big, rolling computers — and that means that you’re probably going to want to upgrade them much more frequently.

The result?

Suddenly, leasing a car has become a whole lot more appealing. Leasing essentially allows you to “rent” a vehicle long-term, paying a monthly fee to drive it for a set term, with the ability to stop paying to use the car at the end of that term.

That offers a clear advantage — cars are rapidly improving, and a car released in 2026 or 2027 is likely to be considerably more advanced than a car released in 2024, in meaningful, life-improving ways.

But leasing a car has its downsides, the most obvious of which is the fact that when you lease, you won’t be investing in an asset that you’ll own.

Leasing an EV

The big advantage of leasing an electric vehicle is simple — you can regularly upgrade your car every few years, ensuring that you always have a modern ride.

That’s a big deal. In a few years, we’re expecting there to be a whole lot more options for electric vehicles, with better ranges, faster charging speeds, and hopefully better software experiences.

In the current EV market, we believe leasing is the better decision compared to an outright purchase.

EV technology is evolving rapidly and updates are coming to market at breakneck speed, so it would be prudent to have the flexibility to reevaluate the market in 2-3 years’ time.

For shoppers with strong credit and have a good idea of how many miles they’ll drive the vehicle per year, leasing an EV often makes more sense than buying, as they can typically get into a lease with minimal upfront money, leasing payments are also usually less than loan payments, too.

Ultimately, you’ll have to decide for yourself what the better path is for your needs. Again, however, given how quickly EVs are improving, it certainly makes sense to put off buying a new car for at least a few years!

Why not check out our latest leasing EV deals here.

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