Read The Full Article On: Forbes
Leasing has become popular in recent years as an alternative to buying and financing a car outright. It’s especially prevalent in the electric vehicle market, where reports suggest nearly 80 percent of all EVs are leased. Leasing an EV not only helps make down payments and monthly expenditures more affordable, it enables EV enthusiasts to keep up with the latest technology without enduring the hassle of having to sell what could become an outdated car after several years down the road.
That means there’s a fresh fleet of two- and three-year-old electrified rides with low miles and in good condition headed back to dealerships. While they may not have the extended operating ranges of the latest models, buying an off-lease EV can prove to be a money-saving proposition in several ways. And as with other cars, you’ll find some pre-owned EVs sold as “certified” used cars that come with an extended warranty.
For starters, with the notable exception of the Tesla models, used electric cars generally suffer low resale values. While that’s bad news for original owners, it means most used EVs are eminently affordable. This is due in large part to the one-time $7,500 federal tax credit granted to EV buyers and lessees, compounded by less marketplace demand and the aforementioned limited range on a charge with older models.
For example, according to Kelley Blue Book a base model 2016 Nissan Leaf in good or better condition and with average miles driven that was originally priced at $29,875 will command $10,465 at a New York City-area dealership. By comparison, a 2016 Honda Civic sedan with an automatic transmission that originally started at $20,275 now goes for $14,096 in the used-car market.
Electric cars are also cheaper to run than conventionally powered models. According to the Environmental Protection Agency, the aforementioned 2016 Nissan Leaf is rated at the electric equivalent of 114 miles per gallon (“MPGe”), which at average electricity rates will cost an owner $600 to drive for 15,000 miles in combined city/highway use. That’s $850 less per year than it would cost to fuel the average 2016 model and drive it the same number of miles. It’s also an annual $550 cheaper to run than the aforementioned 2016 Honda Civic, at 34 mpg.