Study Confirms Leasing an EV Is Cheapest New Car Option

Last year, the thought of the average driver considering an electric vehicle (EV) for leasing or purchasing seemed like a far-fetched reality. The concerns about limited charging infrastructure, range anxiety, and the seemingly higher upfront costs were dominant factors that overshadowed the potential benefits of EVs. Fast forward to the present, and that once-distant push for EV adoption is now within reach. A recent study conducted by Energy Innovation, an energy and environmental policy organization, has unveiled a compelling truth: leasing an electric vehicle (EV) is actually the most economical choice when it comes to acquiring a new car in 2023.

It raises the question: Can the allure of cost savings and environmental responsibility effectively outweigh the deeply ingrained norms of the automotive market? When it comes to costs, perhaps the answer is a resounding “yes.”

Why is leasing an EV more affordable than gas-powered cars?

Leasing an electric vehicle (EV) proves to be more affordable than traditional gas-powered cars due to a combination of factors. Firstly, EVs benefit from significantly lower operating expenses. The cost per mile of electricity used to power an EV is generally lower than the cost per mile of gasoline, resulting in immediate savings over time. These eco-friendly models also demand less maintenance and repairs compared to conventional vehicles per year.

More impactful, however, are the government incentives that are currently being offered. The Energy Innovation study found that because interest rates are so high nowadays, the tax credits play a pivotal role in making EVs the most cost-effective option on the market. These incentives effectively reduce the upfront cost of leasing an EV, helping to offset the initial investment and making EVs more financially appealing. Drivers reap the benefits of making payments on a monthly basis, often with minimal down payment.

Price declines are shaping the industry too

The price of EVs are actually declining in 2023, presenting drivers with a significant advantage. With automakers discovering ways to manufacture electric models at reduced costs and prominent players like Tesla taking bold steps in slashing prices by up to $10,000 on established models, a ripple effect is being created across the industry. Automakers know that the more affordable electric vehicles become, the more likely drivers will gravitate towards leasing or owning one.

As reported by Forbes, the savings are indeed tangible. To illustrate, the “Tesla Model Y is $425 cheaper per month or more than $5,000 cheaper per year compared to its gas-powered equivalent.” Combined with the rising interests rates and cost of new cars in general, these substantial savings from EVs couldn’t come at a more opportune time.

Regardless of whether you’re an advocate of electric driving or hold reservations, the reality of 2023 remains unchanged: leasing an EV stands out as the more cost-effective route to acquiring a new car. This trend will continue until electric vehicle adoption becomes widespread across the nation.

Conclusion

As automakers continue to refine their manufacturing processes and achieve economies of scale in EV production, the overall cost of electric vehicles is expected to decrease further. Additionally, advancements in technology will continue to help drive down the single most expensive component of an electric vehicle: the battery. These efforts will foster a new era of sustainable and cost-effective mobility.

Ultimately, what the Energy Innovation study revealed is that leasing an EV emerges as the most advantageous approach for economizing on a new car purchase. If you plan to delve into the automotive market this year, electric vehicle leasing should be on your radar.

What are your thoughts on leasing an EV? Do you see it as a practical solution for your budget? Comment below and tell us your thoughts! Afterwards, check out another Headlights article on proven-tips for fuel-efficient driving.