Mitsubishi Offers Leases From $249/month. Worst EV Deal Going, and Here Is Why

5 years ago by Inside EVs Staff 5

2012 Mitsubishi i (also known as the i-MiEV)

Mitsubishi has just selected Ally Financial, which is really GMAC masquerading as a bank, to be the “preferred provider of leasing and financing for the company’s breakthrough 100 percent electric-powered 2012 Mitsubishi i.”

Without getting into too much detail, if you have previously been part of an Ally-GM lease on a new Chevrolet Volt, you know there is a lot of fine print, and a lot of fine print means your deal, is not always such a deal if your trying to make financial sense of it, especially once factoring in the $7,500 government rebate that mostly gets chewed up along the way.  Unfortunately, this is the case here with the Mitsubishi i as well, but worse.

Spartan i Interior

The $249 is only netted by the qualified buyer, after plunking down a massive $3,498 at signing, based on a MSRP $30,675 (that’s an i with the quick charge package), then you have to contend with the tax, title, license and as always, nasty dealer fees.  After all that is said and done, your buyout is still up in the air as a question mark, and can only be determined at signing.  In other words, get ready to pay for that right.

By our calculations, your going to pay a cool $13,500-odd out of pocket PLUS lose your $7,500 credit by the time the lease is over (before taxes) on the little 62 mile/112 MPGe (EPA), 4 seater.  Factoring in all the fine print, that works out to almost $600/month before taxes, headline number be damned.

Considering a customer could have used that $13,500 coupled with the government’s $7,500 rebate credit, for a $21,000 chunk off the $30,675 MSRP (of which is clearly negotiable considering the i’s poor sales record), to purchase for themselves,  you would end up owning the car at the end of 3 years for about $8,500 more.  Also of note, the Mitsubishi lease comes with a 36,000 mile cap, with overage charges at .20 a mile.   We here at InsideEVs are fairly confident a Mitsubishi i with under 36,000 miles has a street value a lot higher than $8,500.

Here are the comparative lease deals in the EV business (all include the $7,500 credit):

  • Nissan LEAF – 39 months – $289/month with $2,999 down (MSRP $35,200)
  • Chevrolet Volt – 36 months – $369/month with $0 down (MSRP $39,145), with some serious fine print that makes you unable to buyout the car at the end of the term
  • Mitsubishi i – 36 months – $249/month with $3,498 down (MSRP $30,675)
  • Tesla Model S – bring your check book, leasing is still not available

The bottom line on leasing is still pretty much the same to some degree or another.   Leasing is a good way for automakers to get butts into their cars, and for them to take advantage of the consumer not counting the government credit as their own money.   Mitsubishi is just the worst offender with 70% of the MSRP paid inside the 36 month lease.

If you have the means, and you don’t live in Phoenix (or other extremely hot climates), our recommendation is to buy, not lease.  Especially on the i.

Current EV Value Champion, With a Starting MSRP of $29,125

 

5 responses to "Mitsubishi Offers Leases From $249/month. Worst EV Deal Going, and Here Is Why"

  1. SteveT says:

    Sometimes I think leasing can be the way to get a car, but paying $21000 for a $30500 car just to drive it 36000 miles & then give it back is nuts.

  2. Stephanie says:

    Worse than the $599/month lease for the EV version of the smart car?

    1. Jay Cole says:

      The limited fleet trial run on the EDs (like the initial MINI-E fleet) was indeed pricey.

      However, Mercedes/SMART just started mass producing them. So now, you can buy the car outright for $26,300, and the convertible for $29,200. Well, you can right now if you come north of the border into Canada and bring it south. Should be on sale in the US (for about the same soon)

      Annoucement that production was underway, and that you could now place orders (in some countries) was about two weeks ago, here is our article on it, if you care to read it:
      http://insideevs.com/smart-fortwo-electric-production-kicked-off-today/

  3. MrEnergyCzar says:

    What do they mean you are unable to buyout the Volt at the end of the lease? That’s the first I heard of that.

    Thanks,
    MrEnergyCzar

    1. Maflagulator says:

      I agree, Mr. EnergyCzar. The fine print in my lease agreement states what the purchase price will be at the end of the 36 month term. Even a phone call to Ally Bank told me the same thing.

      I don’t plan on buying it out anyway, since I’ll be in line for the Cadillac ELR and have a Cadillac with a Cadillac badge on it, and not a Cadillac with a Bowtie on it.