EV Financing Options: Is It Better to Lease or Buy an Electric Car?

 

Electric vehicles are becoming a common sight on the Ontario streets, and as more EVs make their way to dealer lots, more drivers are considering whether a new electric model is right for them. But, as with all new cars, drivers will need to decide whether they plan to lease or buy their future EV. To help, BMW of Murrieta’s finance team has broken down the benefits of each so you can decide whether it’s better to lease or buy an electric car for your Corona drives! Learn everything you need about EV financing options with the experts at BMW of Murrieta.

 

 

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Buy vs. Lease: EV Leasing

Before tackling the pros and cons of leasing an electric car, it’s important to know how leasing works. When Riverside drivers choose to lease an EV, they essentially rent the car for the period listed on the leasing contract. Typical leases tend to last between two and five years and only cost as much as the depreciation on the vehicle, leading to lower monthly payments and fewer upfront costs than purchasing a vehicle outright. While leasing does have a few drawbacks– mileage limits and lack of customization to name a couple– financial experts have been proponents of EV leasing for a few reasons: 

• New Technology: Electric powertrains are still relatively new to the automotive industry and have no long-term testing or data for reliability and durability. As such, leasing an electric vehicle for a few years with the intention of returning it ensures you don’t get stuck with a vehicle that becomes obsolete or undrivable after a certain number of years.

• Evolving Expectations: Ten years ago, EVs received far less range than current models, some barely breaking into the triple digits. Now, EVs like the BMW i4 can reach more than 300 miles on a full charge. By leasing, you avoid sinking money into a vehicle that could be technologically behind its competitors by the time you need to sell it.

Buy vs. Lease: EV Financing

Buying, also known as financing, has long been the standard for those looking to make a long-term investment in their vehicle. By choosing to buy, drivers often will take out a loan for the full amount of the new car and pay back the loan provider month-to-month. This allows drivers the freedom to drive, personalize, and sell their vehicle for a new one, all options that leasees don’t have once locked into a contract. That said, electric vehicles put a wrinkle into the benefits of financing. Electric vehicles tend to be more expensive than traditional gas-powered cars, leading to higher down payments and monthly loan payments. Still, there are a few reasons drivers may want to buy instead of lease an EV:

• Proven Track Records: EVs have been on the market for long enough that several manufacturers have records of creating dependable electric vehicles. For example, BMW debuted its first modern electric car, the BMW i3, in 2013, giving drivers 10 years of assurance that the EV they buy will enjoy a long lifespan.

• Cutting-Edge Technology: Electric models are at the forefront of innovation, and not just for the electric powertrains. Many automotive manufacturers are placing their most advanced infotainment, comfort, and convenience technology into their electric vehicles, making them an enticing buy for those who love having the latest gadgets.

Explore EV Financing Options at BMW of Murrieta!

So, is it better to lease or buy an electric car? The answer depends on your unique financial situation and the electric model you’re interested in! Regardless of which appeals to you more, you’ll find a wealth of EV financing options for a luxury, reliable electric model when you shop at BMW of Murrieta. Have any questions about the different reasons to buy vs. lease an EV? Contact us, and our team will be happy to walk you through all your options at our Murrieta showroom!

 

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