Growing up you must have heard of only 2 options for buying a personal vehicle either to pay 100% cost upfront or get a car loan and keep paying interest on your car. But have you heard about leasing?
Car leasing is extremely popular in Western countries with almost 24% of all the vehicles sold being leased whereas in India this trend is extremely poor with just 0.8% of all the automobiles owned being leased. But this trend is improving, as people are becoming aware of this alternate option which is far better than taking a loan.
Also Read: How EV Leasing is More Beneficial than Leasing an ICE Vehicle
Electric vehicles (EVs) have been sparking interest in the automotive world, offering a sustainable alternative to the internal combustion engine. But while most of us are eager to join the EV movement, the financial aspect often becomes a speed bump on the road to eco-friendly driving. So, should you take out a loan to own your dream EV, or is leasing a smarter option? Let’s break down why leasing might just have the edge
Leasing VS Loan – Why Leasing an EV Makes More Financial Sense
- Lower Monthly Burdens: When you lease, your monthly payments are generally lower than when you buy an EV with a loan. Why? Because lease payments cover only the car’s depreciation during the term and not its entire cost.
- Little to No Down Payment: Most EV enthusiasts are pleasantly surprised to find lease deals that require no down payment or just a minimal one.
- Drive the Latest, always: If staying updated with the newest tech and features is your thing, leasing is your best bet. Every few years, when your lease ends, you can simply upgrade to the latest model
Expense Type | EV Leasing | EV Loan |
Monthly Payment | Generally lower | Typically, higher |
Down Payment | Often minimal or none | Usually required |
Maintenance | Largely covered under warranty | Potentially more out-of-pocket |
Long-term Value | No resale concerns | Depreciation affects resale value |
Beyond the Basics – More Perks of EV Leasing
- Short Commitment Span: Not ready to commit for the long haul? No worries. Lease terms usually run between 2 to 4 years, offering flexibility.
- Forget Depreciation Woes: One of the biggest car owner concerns is the steep depreciation, especially in the rapidly evolving EV market. With leasing, that’s a non-issue. Once your term ends, return the vehicle. No strings attached.
- Potential Tax Benefits: In several regions, leasing an EV can lead to tax credits or rebates. It’s like the cherry on top of your eco-friendly sundae!
- Future Flexibility: When your lease ends, you have options galore! Fancy buying your leased EV? Go for it! Want to try a new model or brand? Lease again. Just want to return it? That works too.
Concluding Charge
As the EV landscape shifts and Molds, it’s crucial to choose financial strategies that maximize benefits and minimize pitfalls. Leasing, with its flexibility, potential cost savings, and freedom from long-term commitments, appears to be an increasingly popular and savvy choice for many.
However, it’s essential to remember that every driver’s needs and preferences differ. What works for one might not for another. But if you’re looking for lower monthly costs, the excitement of frequently updated models, and freedom from the hassles of resale and depreciation, EV leasing certainly has a strong case.
As you contemplate making the switch to an electric vehicle, weigh your options. And remember, it’s not just about driving—it’s about driving smart.
