Considering The Option To Lease Or Buy A Used EV – Video

SEP 8 2016 BY MARK KANE 11

An interesting overview of the decisions behind purchasing and leasing plug-in electric cars from the UK perspective was recently logged by Fully Charged.

Go Ultra Low vehicles in UK

Go Ultra Low vehicles in UK

What is immediately striking is that there is already plenty of choices of plug-in models from various brands, sizes and powertrain types: all-electric or plug-in hybrid, 2WD or AWD, etc.

Leasing is an important option for plug-ins if you are cost-conscious on the monthly payment, have concerns about batteries, quickly improving technology making today’s EVs obsolete…or if you are just not sure about what the residual value might be 3-4 years after making a purchase.

The other option is to buy a used plug-in; which, now that we have put a few years between us and the start of series production for some early models, have become more and more common in ads – and sometimes for some pretty decent prices – usually for many of the same reasons that have made people want to lease those electric vehicles in the first place.

“Encouragement to consider other ways of driving electric cars, as electric cars become more common, leasing and 2nd hand models are becoming more affordable.”

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11 Comments on "Considering The Option To Lease Or Buy A Used EV – Video"

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This has nothing to do with this article, but it is interesting to see that the front page lists an article “Woz to replace his Tesla with Bolt” that leads to a “page not found”!

Did someone think it would be too harsh on Tesla to even mention it?!?

More likely just a technical glitch and I expect the story to appear soon. In any case I could give a damn what Woz drives. 😀

It was three stories prior to this one, published 4 hours ago.

***mod edit (staff)***
This is the link to the story here:

Woz To Trade In Tesla Model S For Chevrolet Bolt
***mod edit***

While people are using leases as a way to evade the rapidly decreasing resale values of EVs, I can’t imagine this will continue to be a viable solution.

This only works because the financiers are agreeing to set residual values at levels that are, frankly, out of touch with reality. At some point, they will be forced to set residual values that are in line with what the cars actually sell for at the end of the lease… and at that point, EV lease prices will skyrocket.

Or EV prices will come down, which I think is bound to happen as production numbers increase. Maybe not the MSRP, but the effective prices people are paying will drop via rebates and other incentives. We are actually already seeing this in some cases, and I expect we will see more.

Great advice on leasing an electric vehicle. And …. absolutely useless and misleading review when it comes to Nissan Leaf battery loss. Batteries do wear out, and they are doing that at the rate that you wouldn’t be pleased with. The 1 st dropped bar of battery health in Nissan Leaf, based on Nissan manual represents 15% capacity loss(and range as well). Every vehicle is different and charging level plus climate conditions attribute to battery loss. The 1st bar can disappear between 35K and 40K miles. Then each subsequent bar loss will represent additional 8% loss. In US the battery replacement costs $5500. So, let’s do some math to figure out what is a mileage needed to cover for the battery replacement in case the vehicle is owned. The assumption I am making is that vehicle that is replaced by Nissan Leaf makes 28 miles per gallon. 1 gallon in US median price over Last 3 years is around $3. Let’s see how many gallons we can get off the battery cost: 5500/3 = 1833.33 gallons. Now, let’s see how many miles we have to make in an electric car to break even with the gas powered vehicle that consumes… Read more »
Eugene, While your story paints a sad picture – check out this sob story – of my own: In 1984, I bought a 1983 Mazda RX7 Sports car with Aftermarket Arkay Turbo System, on Consignment from a Dealer at $18,000 List + 5% Consignment Fee (of course – plus Tax, but skipping that) = $18,900! The Car, stock, put out 100 Hp, Mine – 205 Hp. It could hit the 6500 RPM Limit – in Each Gear, no problem, and it was ‘Tesla Quick’, as well! My Pay at the time – $12.34 Per Hour, my Car Payments: $210 per month at a Finance Company at 29.9% and 410 per month to a Bank at 14.5%, so $670 Per Month in Car Payments (+ About $250 a Month in Premium Fuel, because of the Turbo)! In just 3 months I had driven it 30,000 Kms (~20,000 Miles or so), and one night – late, when exiting the freeway at an uphill off ramp, after the light turned green, and I began to make a left turn – on Rotor blew an Apex Seal (like the rings of a Piston), and I smashed the throttle to keep it running! The Dealer… Read more »

Continued from my previous post…
So, multiplying miles on gallons will give us the mileage that we will have to expect from the battery to break even: 1833.33*28=51333.333 miles. And again, this is just to break even. Oh, forgot to add oil changes every 5K miles – for a small vehicle like Honda Civic or Toyota Corolla that are comparable to the size of the LEAF $35 per oil change – 51333.333/5000 = 10.26 oil changes, that will give us additional $359.33. I also need to mention the faster depreciation of electric vehicles because of the reason I put above. So, if the new Nissan Leaf cost after tax incentives dropped for me from $32888 (price plus tax) to about $21000, but today after 3.9 years of usage the car worth only $5500, or pretty much the same as to do a battery replacement. Tesla’s batteries handling capacity loss much better (based on published statistics). So, do your own math and lease, don’t buy an electric….

You forgot Engine repairs, which in my experience begin after 4 or 5 years with ICE cars. I’ve spent at least as much as the cost of a new battery on repairs/replacement of parts an EV doesn’t have on my 9 year old ICE car.
So your Argument for “lease, don’t buy” stands for ICE Cars als well.

Also, replacing tires and oil changes are about the same price(oil is cheaper). In my case I paid $440 for new Bridgestone Ecopia. So, if the battery would be lasting longer – no doubt, electric vehicles could be purchased. Otherwise – lease them and save yourself from a hassle to sell a completely deprecated car later…

And here is the actually relevant information:

Buy vs lease is a tough decision and really depends upon the buyer’s financial situation, the model car they’re interested in and a lot of other factors. The LEAF’s problems with battery capacity degradation has really clouded the picture and tilted things towards “lease”, at least for the LEAF. Other vehicles have seen a lot slower battery degradation and newer battery chemistries hitting the market hopefully have even slower degradation. GM has been saying the Bolt’s battery pack is designed for a 15 year life, even though it will have the standard 8 year / 100k mile warranty. Tesla is giving out similar figures. The big uncertainty is whether EV makers will have battery refurbishment or replacement programs. GM has said they’re not going to replace / refurbish battery packs since they’re more interested in selling someone a new car instead, warranty issues aside. This makes sense for them and in reality, almost all cars have depreciated nearly 100% by the time they’re 15 years old anyway, so vehicle owners’ biggest risk is capacity degradation falling below their needs between 8 years and 15 years of ownership. On the plus side, the market for stationary energy storage via used EV… Read more »