Thinking About An Electrified Vehicle? Leasing Is The Way To Go!January 19, 2018
There’s a huge amount of buzz out there about the electrified vehicle segment. They are becoming more and more popular as the technology improves. You’ve probably heard about the new Tesla Model 3 and Chevrolet Bolt, two new battery electric vehicles that are reasonably priced (starting at the $35,000 to $37,000 price point) and give you more than 200 miles of range on a single charge. For many people, these vehicles could replace a conventional gasoline-powered car or SUV.
What’s The Best Way To Drive An Electrified Vehicle?
If you are considering taking the plunge and getting an electrified vehicle, you should also be aware of what the ownership proposition for this type of vehicle looks like:
- Battery range is increasing every year
- Battery cost is decreasing every year by about 20 percent
- More electrified vehicles will be coming out every year
- The best electrified vehicle technology is still being developed
- Electrified vehicle prices will go down over time
- Electrified vehicle resale value is terrible
In view of these facts, there is absolutely no benefit in a long-term relationship with an electrified vehicle at this point in time. So how can you ride the wave, and drive the best possible electrified vehicles, now and in the future? Lease one, like most other drivers of these vehicles do!
It’s A Fact
A recent article in Automotive News, based on a study by Bloomberg New Energy Finance, explained that nearly 80 percent of battery electric vehicles and 55 percent of plug-in hybrids in the US are leased. This compares to a 30 percent leasing rate for the entire US vehicle market! There are several reasons for this.
New Vehicles Have The Newest, Best Technology
As we stated above, electrified vehicle technology is moving very quickly. Most buyers of these vehicles are focused on having the latest technology now, so the newest is the best!
The Incentives Apply Only To A New Electrified Vehicle
All of the federal and state tax incentives for these types of vehicles apply to buyers of new ones, not used ones. So buyers will benefit more financially from a new vehicle.
There Is Very Little Interest In Used Electrified Vehicles
Start with the fact that the electrified vehicle market is tiny to begin with, at only about one percent of the total market. This means that there are very few used car buyers interested in these vehicles. There are questions about how long these vehicles’ batteries will last their second or third owners. And many people may not even have a place to charge them, especially if they are renters. Remember, older battery electric cars had very limited ranges when they were new – most got less than 100 miles on a charge when they rolled out of the showroom, and they lose range over time. That’s an undesirable limitation for most people who have to drive to work every day, and then run errands after work.
The market agrees. A 2014 model year battery electric compact car is worth just 23 percent of its sticker price. This compares unfavorably to conventional combustion-engine vehicles from the same model year, which retain 41 percent of their value. A big difference!
Leasing An Electrified Vehicle Just Makes Sense
Leasing a vehicle of this type makes so much more sense than buying one. You can enjoy the current state of the art now, and move on to the latest and greatest when your lease is up. It’s the best option!
Have you leased an electrified vehicle? We’d love to hear about it! Share your experience with us in the comments below: