XP: Lease vs Buy EVs

[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

[isabel]

I don’t know anything about this, but I guess I’m curious why it would matter if this vehicle isn’t the most current compared to its peers in 5 years. It’s still a zero emissions vehicle, right? Is there an environmental element to the old ones not being as good? If not, I don’t see this as any different than the way cars have evolved over the last several decades. A 5 year old car now (of any type) is bound to be dated compared to the new ones.

[cosmowife]

I think that advice is probably just a marketing ploy. As long as the battery is expected to last that long, why does the technology matter? We bought a Prius Prime (plug in hybrid) a couple of years ago and expect to have it for a very long time. When I was recently car shopping, I did see a very big difference between cars that are available now and cars that were available about three years ago. But that was true of all cars, not just electric vehicles. The safety features now seem very advanced compared to just a few years ago. So that would mean that the argument for leasing due to technology would apply to all vehicles, not just electric vehicles. And we know that is not the case.

[karinothing]

Aug 22, 2019 6:17:54 GMT -5 isabel said:

I don’t know anything about this, but I guess I’m curious why it would matter if this vehicle isn’t the most current compared to its peers in 5 years. It’s still a zero emissions vehicle, right? Is there an environmental element to the old ones not being as good? If not, I don’t see this as any different than the way cars have evolved over the last several decades. A 5 year old car now (of any type) is bound to be dated compared to the new ones.

I think the idea is that the mileage is changing a lot. For example, the 2014 ford focus has a range of 76 mi and the 2019 ford focus has a range of 140mi. Another few years and the range could be 300. That goes from a car you can only use to commute around town to a car you can take on some long range trips. That could be an important factor in the usability of the car.

[konapoppy]

FWIW, my parents are buy til die people too, and they chose to lease their first EV. They are now buying it, though.

[isabel]

Aug 22, 2019 6:49:11 GMT -5 karinothing said:

Aug 22, 2019 6:17:54 GMT -5 isabel said:

I don’t know anything about this, but I guess I’m curious why it would matter if this vehicle isn’t the most current compared to its peers in 5 years. It’s still a zero emissions vehicle, right? Is there an environmental element to the old ones not being as good? If not, I don’t see this as any different than the way cars have evolved over the last several decades. A 5 year old car now (of any type) is bound to be dated compared to the new ones.

I think the idea is that the mileage is changing a lot. For example, the 2014 ford focus has a range of 76 mi and the 2019 ford focus has a range of 140mi. Another few years and the range could be 300. That goes from a car you can only use to commute around town to a car you can take on some long range trips. That could be an important factor in the usability of the car.

Gotcha. This makes sense.

[wawa]

Aug 22, 2019 6:27:13 GMT -5 cosmowife said:

I think that advice is probably just a marketing ploy. As long as the battery is expected to last that long, why does the technology matter? We bought a Prius Prime (plug in hybrid) a couple of years ago and expect to have it for a very long time. When I was recently car shopping, I did see a very big difference between cars that are available now and cars that were available about three years ago. But that was true of all cars, not just electric vehicles. The safety features now seem very advanced compared to just a few years ago. So that would mean that the argument for leasing due to technology would apply to all vehicles, not just electric vehicles. And we know that is not the case.

One factor that does seem meaningful to me is that the charging tech and infrastructure is still developing too. So 5 years from now the type of charger on the Kona might be harder to find and there might be a huge network of something new they it can't use. Or something.

Not positive that it'd induce me to lease, but I'd think about it for sure.

[lemoncupcake]

Aug 22, 2019 6:49:11 GMT -5 karinothing said:

Aug 22, 2019 6:17:54 GMT -5 isabel said:

I don’t know anything about this, but I guess I’m curious why it would matter if this vehicle isn’t the most current compared to its peers in 5 years. It’s still a zero emissions vehicle, right? Is there an environmental element to the old ones not being as good? If not, I don’t see this as any different than the way cars have evolved over the last several decades. A 5 year old car now (of any type) is bound to be dated compared to the new ones.

I think the idea is that the mileage is changing a lot. For example, the 2014 ford focus has a range of 76 mi and the 2019 ford focus has a range of 140mi. Another few years and the range could be 300. That goes from a car you can only use to commute around town to a car you can take on some long range trips. That could be an important factor in the usability of the car.

That’s why we are considering a lease for our next vehicle which will be an EV. Given our budget and typical ranges, we will likely get a commuter/around town sized vehicle. But we have family several hundred miles away so might consider upgrading when the lease is up to get a road trip worthy EV.

[mpc]

We decided to buy - I looked at the range I was getting (240) and decided that was something I could live with as a daily limit for a long time. (Our other car is gas so honestly if we are doing a roadtrip we'd probably take that one.) If we were talking several years ago about a Leaf with only 80 mile range that would've been a different story.

If the standard chargers change at some point then I imagine you'll be able to get an adapter and still plug into the new system, whatever it is.

[just]

Aug 22, 2019 6:49:11 GMT -5 karinothing said:

Aug 22, 2019 6:17:54 GMT -5 isabel said:

I don’t know anything about this, but I guess I’m curious why it would matter if this vehicle isn’t the most current compared to its peers in 5 years. It’s still a zero emissions vehicle, right? Is there an environmental element to the old ones not being as good? If not, I don’t see this as any different than the way cars have evolved over the last several decades. A 5 year old car now (of any type) is bound to be dated compared to the new ones.

I think the idea is that the mileage is changing a lot. For example, the 2014 ford focus has a range of 76 mi and the 2019 ford focus has a range of 140mi. Another few years and the range could be 300. That goes from a car you can only use to commute around town to a car you can take on some long range trips. That could be an important factor in the usability of the car.

This is my main thinking. I don't think we're nearly done improving this technology, and 3-5 years will be a lot. I also think that the older versions won't hold much of any resell value. Although as someone said over on MM that will impact the lease monthly cost too.

The other reason is choice. While there are ton more choices now than 3 years ago, I think the options will be much more varied in a few years. 

[cinnamoncox0]

Don’t forget to factor tax incentives into your choice.

[pixy0stix]

I'd lease, simply because, as stated by others, the infrastructure for the cars is going to change and develop quickly over the next couple of years.

[Deleted]

Not sure where you live, but check with your electric utility as well. Some offer rebates for the car, some offer them if you decide to upgrade to a level 2 charger in your home and they may also time-of-use rate plans that heavily incentive you with cheap electricity if you'll charge after 9 or 10 pm.

[just]

Aug 22, 2019 14:32:19 GMT -5 @princessbubbleyum said:

Not sure where you live, but check with your electric utility as well. Some offer rebates for the car, some offer them if you decide to upgrade to a level 2 charger in your home and they may also time-of-use rate plans that heavily incentive you with cheap electricity if you'll charge after 9 or 10 pm.

This is a big reason for us - we have home solar panels and currently have a MASSIVE electricity surplus/credit (like thousands of $), so an EV seems like a no brainer from that perspective.

[Deleted]

Aug 22, 2019 14:50:24 GMT -5 just said:

Aug 22, 2019 14:32:19 GMT -5 @princessbubbleyum said:

Not sure where you live, but check with your electric utility as well. Some offer rebates for the car, some offer them if you decide to upgrade to a level 2 charger in your home and they may also time-of-use rate plans that heavily incentive you with cheap electricity if you'll charge after 9 or 10 pm.

This is a big reason for us - we have home solar panels and currently have a MASSIVE electricity surplus/credit (like thousands of $), so an EV seems like a no brainer from that perspective.

Wow - that is great! 

[amberlyrose]

Aug 22, 2019 13:45:10 GMT -5 cinnamoncox0 said:

Don’t forget to factor tax incentives into your choice.

This was a major factor for us.