XP: Electric Cars - Lease vs Buy

[just]

My DH really wants an electric car, and it is a good fit for us.

He's currently looking at the Hyundai Kona. 

We'd NEVER otherwise consider leasing - buy til die is our motto.  However, we do want a bigger sized EV and from what I've heard, leasing is skewing stronger for EVs because of the technology improvement curve - A great EV now is unlikely to be in 3-5 years because of tech improvements.

Lease-based milage limits aren't a concern for us.

Is this actually a thing? Can you point me toward anything that could help us make that decision

[sloan]

I’ll just throw out there that if it’s not too small, the Chevy Volt a few years used is generally very affordable. If you’re not worried about mileage limits for a lease I think you’d be unlikely to run out the electric range and switch to gas with any regularity, so while not technically an EV you’d probably drive it as one 95% of the time.

Just a thought if you want something to tide you over until EVs further improve.

[scout8]

I'm not opposed to leasing. I think it makes sense sometimes. Have you looked at monthly payments if you lease? If they aren't expected to hold their value, the residual value may be low which would make the monthly payments high.

[sadlebred]

Consumer Reports had a huge article on EVs this month including a section about leasing vs. buying. You might want to see if you can find the article.

[just]

Aug 22, 2019 8:38:44 GMT -5 sadlebred said:

Consumer Reports had a huge article on EVs this month including a section about leasing vs. buying. You might want to see if you can find the article.

Awesome! Off to the library - thanks so much.

[just]

Aug 22, 2019 6:06:03 GMT -5 scout8 said:

I'm not opposed to leasing. I think it makes sense sometimes. Have you looked at monthly payments if you lease? If they aren't expected to hold their value, the residual value may be low which would make the monthly payments high.

Great point! Thanks.

[wildrice]

I have heard this too, but I don't really understand it. Unless the vehicle is going to stop working or you anticipate wanting to sell it/upgrade, why does it matter if technology gets better? Technology is ALWAYS going to get better. I'm driving a rental this week and it has tons of technological features that my 2010 doesn't have, and I'm sure 9 years from now a new car will have tons of stuff that my rental doesn't have. I think if you're always trying to outrun developments in technology, you're never going to be able to stop buying/leasing something.

That being said, if doing that is your priority - that's absolutely valid and leasing sounds like it might be a good fit! But if you wouldn't be upgrading a regular car in 5 years I'm not sure that it matters all that much for electric either.

[waverly]

I would lease if you plan to get a different car in a few years.

Technology moved super fast all of a sudden from my 2010 to the 2018 that we got- not Electrical. So jumps in tech could be a reason. We got hit with some depreciation because DH didn’t realize he wanted a bigger car, so it does suck if you buy a car and have buyers remorse. If you know for sure you want this car at least 6-8 years then buy outright. If your not sure and just want to try some out leasing sounds better for short term.

[just]

I think the reason behind the recommendations is that the improvements in technology aren't to supplemental technologies (backup cameras, safety features, etc). It's that the technology is improving the primary purpose of the car - particularly increasing the range of the battery, and the speed of charging, etc. Whereas gas cars haven't changed how the primarily work in 50-60 years, Electric cars are new enough that improvements are massive. The range of batteries have doubled in the last 4-5 years and the growth isn't done.

If we buy a non EV , we'll keep it til it dies. If we buy a hybrid, we'll keep it til it dies. But my concern is that an EV will be so outpaced in 5-8 years that it's limitations will essentially kill it early for us and it's life-span will be too short.

[savan]

We recently purchased our EV. It's a commuter car for DH. I can't imagine what will happen in 5-8 years that will make it obsolete. It has a range of 250 miles which is more than enough for DH's commute or to get our kids to their activities. We do the majority of the charging in our garage. That electrical plug isn't going to change. The battery has a lifetime warranty so if something happens they will replace it. Prior to buying this car, our cars were 10, 15, and 17 years old so we don't need new technology.

If you want to lease and it makes the most sense for you, by all means go ahead and lease. There are a lot of valid reasons for leasing an EV. But I also don't think purchasing is a mistake.

[sadlebred]

just - The article was behind the Consumer Reports paywall or I would have posted a link. I have an old fashioned paper magazine subscription to it!

[picaflora]

We purchased ours - and I'm good with that decision. It has a 310 mile range, and the charging network is prevalent where we need it for longer trips - and it continues to grow. Most of our day to day charging is done at home, and my parents have a level 2 charger set up at their house (50AMP for their camper).

While additional range would be nice sometimes, we aren't going to gain much from it like we would if we had purchased a Nissan Leaf a few years ago. The car receives updates that turns on additional safety features and there was even one that increased charging speed.

I think if we were looking at any model that had an iffy charging network or didn't have the range that would cover our needs we would have leased. I fully expect our EV to still being going strong in 8+ years (and we'll have it paid off in 3 years).

[macmars45]

My H and I are planning on buying an EV when our 2006 huyndai accent finally dies (probably in 1-2 years as it's really showing its age). We test drove a Leaf a few weeks ago and loved it!

[itsme]

We were discussing electric cars yesterday and although the Tesla is gorgeous, I don't know that I trust it so we're looking at other options. The Kona is winning out because of the lifetime battery warranty. The Leaf is on our list and H liked the inside of the Bolt (in pics at least).

[just]

We test drove the Kona and the Kia Niro this weekend. They're both very similar, the Niro is slightly bigger. The Kona is winning out slightly though. I think we're going to buy in the next couple of months. ( itsme)

[picaflora]

Aug 26, 2019 13:03:00 GMT -5 itsme said:

We were discussing electric cars yesterday and although the Tesla is gorgeous, I don't know that I trust it so we're looking at other options. The Kona is winning out because of the lifetime battery warranty. The Leaf is on our list and H liked the inside of the Bolt (in pics at least).

Anything in particular you don't trust about the Tesla?  We've had our Model 3 for a year now, and have put 15,000 miles on it (which is high for us).  Our only "issue" was H getting a flat after running over a roofing nail in our driveway.  

[itsme]

Aug 28, 2019 14:56:55 GMT -5 picaflora said:

Aug 26, 2019 13:03:00 GMT -5 itsme said:

We were discussing electric cars yesterday and although the Tesla is gorgeous, I don't know that I trust it so we're looking at other options. The Kona is winning out because of the lifetime battery warranty. The Leaf is on our list and H liked the inside of the Bolt (in pics at least).

Anything in particular you don't trust about the Tesla?  We've had our Model 3 for a year now, and have put 15,000 miles on it (which is high for us).  Our only "issue" was H getting a flat after running over a roofing nail in our driveway.  

I'm seeing reports that the electronics may go on the fritz, the paint chips, and the glass cracks.  It's also a newer company so I am concerned about the long term reliability.  We decided to go the hybrid route since EV won't work for our situation.

[winemaker06]

I’ve been having this debate in my head for awhile. DH has been wanting an electric car for Years. So 2 years ago when it was time, he went with the Prius Prime. He still loves it, it’s just small. But the EV/gas hybrid part is awesome for us.

I can see how leasing is appealing depending on your priorities. I would consider leasing a Tesla if I needed something new right now, but want to test drive a Leaf. I need to get current on Hyundai and Kia EV options since I definitely haven’t been paying a lot of attention.

[itsme]

Aug 26, 2019 13:34:24 GMT -5 just said:

We test drove the Kona and the Kia Niro this weekend. They're both very similar, the Niro is slightly bigger. The Kona is winning out slightly though. I think we're going to buy in the next couple of months. ( itsme )

Due to H's work schedule and the amount of time he's home when he's on long days, we decided against the electric route.  There's no guarantee his work site will have charging stations as it changes all the time and if he's on long days, he won't be home long enough to get a full charge and he would need one for his commute.  We are looking at hybrids now and are close to pulling the trigger on the Honda Insight.

[just]

itsme, we ended up buying the kona last week and love it so far. Range anxiety is real but there’s so many tools to make it work.

[itsme]

Sept 9, 2019 21:11:44 GMT -5 just said:

itsme , we ended up buying the kona last week and love it so far. Range anxiety is real but there’s so many tools to make it work.

How is the interior on the Kona?  We tried the Ioniq Limited and were very underwhelmed with the interior.  Honda's interior is so much nicer.  H just told me last night he would prefer a plug-in so now I'm looking at those too.  

[just]

Sept 10, 2019 9:38:08 GMT -5 itsme said:

Sept 9, 2019 21:11:44 GMT -5 just said:

itsme , we ended up buying the kona last week and love it so far. Range anxiety is real but there’s so many tools to make it work.

How is the interior on the Kona?  We tried the Ioniq Limited and were very underwhelmed with the interior.  Honda's interior is so much nicer.  H just told me last night he would prefer a plug-in so now I'm looking at those too.  

We usually buy the lowest model cars, so I think it's super fancy!! I just kept saying how soft the steering wheel was. So I'm not probably the best person to ask.