For many consumers interested in an electric car, leasing has become the go-to option. Why? It’s simple: today’s electric cars are like smartphones. The cutting-edge technology on sale today will likely go obsolete in three year’s time, which makes leasing a perfect option to jump into the next best thing at the end of a term.
Bloomberg reported on the electric-car lease love affair on Wednesday and found 80 percent of U.S. drivers lease battery-electric cars and 55 percent of them lease plug-in hybrids. Compared to the average 30 percent lease rate for all U.S. drivers, the numbers are quite significant. It shows consumers understand that modern electric cars are still very much in infancy.
The large lease rate also creates another side effect: pre-owned electric cars remain dirt cheap. Foremost, used electric cars don’t qualify for federal tax credits and other incentives. It leaves thousands of Chevrolet Volts, Nissan Leafs and other electric cars on dealership lots to sell at a fraction of their original value. It does, however, make for some stellar deals if buyers can look past the fact they’re not getting the latest and greatest technology and capability.
Until electric cars reach their plateau, leasing will likely remain king. Unless car subscription services really begin to take off.