Motorists have been put off by the relatively high prices of electric cars and this is one of the main reasons why this exciting form of transport has yet to take off. You may think that purchasing a used electric car is one way around the issue but in reality, a used car is not that much cheaper than a new one all told.
The Benefits Of Leasing
In the United States, the Government offers tax credits with the federal credit equivalent to around £4,500. This is known as ‘bottom line’ credit so if you’re not paying at least this much in federal taxes, you will not get the full benefit. In the UK, there is a Plug-In Grant worth up to £5,000 against the purchase of new electric cars which means you don’t get this for buying a second-hand model.
Electric car charger. Image: Dreamstime.com
The result is that people try to lease an electric car instead. A Nissan Leaf model will set you back over £16,000 and few people can afford that even with the aforementioned grant. The financing company that purchases the new car from the manufacturer may receive grants and can then pass down any savings to the lessee. Using the example of the Nissan Leaf above, you could pay around £200 a month along with a deposit of approximately £2,300 over a 4 year period. If you want to own the car at the end of the four year term, an optional payment of just over £6,300 must be made.
Used electric cars simply can’t compete with low lease rates and you will probably be paying a substantial sum of money for a car with tens of thousands of miles on the clock. When you add in the fact you don’t know how electric car batteries degrade over time, leasing makes far more sense than purchasing a second-hand car.
A Young Market
The electric car market is still in its infancy and there aren’t a huge array of brands to choose from as of yet. The main electric cars come from companies like Nissan, Volvo and Renault and they have only been on the market a few years. In 3-4 years time, we will have a much better idea of how the market works but for now, it would appear as if leasing an electric car is the best option if you can’t afford a brand new one straight away.