Why Most Electric Cars Are Leased, Not Owned (bloomberg.com)

Bloomberg's research shows that drivers in the U.S. lease almost 80 percent of battery-powered vehicles and 55 percent of plug-in hybrids. "The lease rate for the country's entire fleet hovers around 30 percent," reports Bloomberg, noting that Tesla does not divulge how many of its vehicles are leased since it sells its cars directly rather than through dealerships. From the report: The lopsided consumer preference for leases is fueled by the meager demand for battery-powered vehicles on the used market. Partly this is a consequence of public policy meant to spur electric vehicle adoptions: buyers of pre-owned cars can't grab thousands of dollars in federal and state incentives. The high lease rate is also fueled by the bet [many] are making that upcoming models will far exceed today's in value and capabilities. Perhaps electric vehicles will truly arrive when they are no longer compared to smartphones, which become obsolete after three years.

Comments

Yeh no shit

[beelsebob]

No shit. I lease my eGolf. Why - I leased it 2 years ago, and could get an 80 mile range car. Today for the same price I could get a 240 mile range car from Chevrolet, or a slightly nicer 120 mile range car from VW. I'm sure in a further 3-4 years I'll be able to get a 400 mile range car for the same price again.

It'd be completely crazy to bind yourself into a technology that's advancing so quickly at the moment.

Re:Yeh no shit

[ginoledesma]

I agree. The improvements in battery tech from one generation to another is significant, in that it can be lifestyle-changing. Range anxiety can be a real and frustrating issue to deal with.

I helped a friend go a different approach for an EV-as-a-commuter/second car option: Buy used, and the price drop from a lot of off-lease vehicles can be significant (e.g. Fiat 500e, Nissan Leaf, Chevrolet Volt, Mitsubishi i-Miev, BMW i3, etc).

Some back-of-the-napkin math using a Nissan Leaf as an example:

• 2017 lease: $229/month for 36 months + $2,000 at signing = $10,244 + taxes + etc
• 2014 off-lease purchase with ~32K miles: $8,500-$11,000 using Kelly Blue Book / Private Party valuation

Some areas even give additional incentives, even to pre-owned buyers (e.g. $500 PG&E Clean Fuel Rebate), and older EVs may still have the Clean Air Vehicle (CAV) sticker that may eventually phase out in January 2019 in California.

If you're patient and do your research, you might find a very good deal that may work to your advantage. My friend ended up getting a 2013 Fiat 500e with 27,000 miles for $6400 after taxes and rebates. Decent commuter vehicle, and the owner gets to enjoy company-provided charge stations (so effectively "free miles" while employed).

Re:Yeh no shit

[beelsebob]

70mpg is far from better milage - my eGolf gets 129mpge. And that's before you consider the fact that my employer pays for all the electricity to charge it.

I ended up paying a total of slightly less than $5000 over 3 years to own the car, including all fuel for it. To drive 30,000 miles in a petrol car would have cost me $3000 in fuel alone, further, the value of the car would have depreciated by far more than $5000 across 3 years. Long story short - sure I "paid money for nothing"... if you ignore the utility of having a car for 3 years. I in fact got a far better deal than if I'd paid money for something.

And that's all ignoring your idiotic "ride a motorbike, turn yourself into a road crayon" idea. I'll pass on having a 35 times higher likelihood of being seriously injured thanks.

Re: Battery life?

[Anonymous Coward]

EV batteries have different chemistries. They have turned out to be surprisingly long lasting, especially if properly cooled. Most new EVs have 8-10 year battery warranties.

Re:Battery life?

[mspohr]

My 2015 Tesla S still has 96% of the original battery capacity after 60,000 miles. I'm happy I bought it since leasing is expensive and I don't see getting rid of this car for a long time.
OTOH, I have heard that Leaf batteries don't last long since they don't have a good battery management system.
Leasing is sensible with EVs since the technology is changing fast. Tesla's are good since I get monthly software updates and the battery is good.