Everything You Need To Know About Leasing An Electric Car

Leasing an electric car has many benefits over buying one, such as lower monthly payments, never worrying about maintenance or repair due to the car being so new, and much more. Before you buy a brand new electric vehicle (EV), it’s essential to familiarize yourself with all of the options that leasing has to offer.

Can I Have Equity In a Leased Car?

A lease can offer the same financial advantages as buying a car outright. If you have bad credit or don’t have the money to make a sizeable down payment, leasing can get you into a brand new vehicle. After a few years, you can turn it in and lease it again.

If your leased car is worth more than predicted at the end of your lease, that’s equity. And when you’re getting ready to turn in your leased car, you can use that equity toward your next purchase or lease.

Not every lease is going to leave you with money in your pocket. Some cars depreciate more rapidly than others, and some leases include high-interest rates and large down payments that eat into your potential equity.

But if you play your cards right, it is possible to come out ahead when leasing a car.

Which Electric Car Has The Lowest Cost Of Ownership?

According to new data from Edmunds, a popular electric car with a starting price of $30,000 and a range of 200 miles will be cheaper than a conventional gas-powered car to own after five years.

The initial cost of buying an electric car can be higher than that of a gas vehicle, depending on how much range the car has and who makes it.

But over time, the savings that come from not buying gas and spending less on maintenance will add up quickly enough to make electric cars cheaper to own.

According to new research from Edmunds, which looked at how much it costs to own an electric vehicle compared with an internal combustion engine vehicle over five years.

Can You Return a Leased Car Early?

Before you return your leased car, you’ll need to pay any due charges. For example, if you have exceeded any mileage restrictions or caused any damage to the vehicle, you will be billed for these costs.

If your car is in good condition and you haven’t exceeded your mileage allowance, the only charge you will have to pay is a penalty for early termination. Providers often charge this penalty because a customer ending their lease early means the provider has to find another customer for the same car sooner than expected.

Early termination fees can vary from as little as $150 to several thousand dollars, depending on when in the contract period you end the lease. You can find out what fees apply by looking at your contract or contacting your provider.

How Do You Profit From a Leased Car?

You can’t profit from a leased car — at least not in the way you might expect. The dealer will not give you a lease refund when you turn it in early, and you have no ownership stake in a leased vehicle.

However, there are ways to get out of your lease without paying an early termination fee if you’re willing to swallow a few costs.