First Car - New Driver - EV Lease vs Finance

[Anonymous]

Hey everyone, so just getting my license (I am 31 but immigrant so don't have a US license and tbh haven't driven in years until now, driving where I am from is also significantly different than here).

Planning on getting an SUV (future proof for kids purposes) but am debating vs lease or finance.

Predominantly looking at EV SUVs, but as the tax incentive in 2024 is restrictive for purchase but not lease, as in lease all EVs seem eligible for the credit (and battery technology evolves over time), thinking of leasing an EV. Thinking given above in this scenario leasing may make more sense. Anyone have an input in this?

The cars I am considering are as follows: Ford Mach E, VW ID.4, Hyundai Ioniq5, Kia Ev6 (a little concerned with the Hyundai/Kia option due to all the thefts lately, sure these new ones have the immobilizer by the idiots trying to steal don't know that).

Thank you foe your input

[Anonymous]

Generally speaking it’s financially stupid to lease a car.

That said, I might consider it for an EV given the quantum leaps coming and more options on the market in a couple of years.

Remember that cars really aren’t machines anymore. They are computers and software.

[Anonymous]

Anonymous wrote:Generally speaking it’s financially stupid to lease a car.

That said, I might consider it for an EV given the quantum leaps coming and more options on the market in a couple of years.

Remember that cars really aren’t machines anymore. They are computers and software.

OP here, generally speaking I 100% agree with the point of view of financing is better and that leasing is more so akin to burning money.

If I went lease I would only do so for an EV, and as of now my heart is kind of set on EVs (that I am sure may change once I start test driving). As you said one of the reasons I am thibk to lease is because with battery technology potentially evolving, don't want to be stuck with a 200ish range car if in a few years, 500m ones will come. Moreover, with the new EV tax credit criteria, most cars I would want don't seem to qualify anymore due to the local content requirements (if not mistaken) if finance, but if lease most EVs would qualify so from that perspective it seems to make more financial sense. Plus with EV resale values not being great (potentially) and that also potentially getting worse if better batteries come out in a few years.

Last, and this is the point I am not sure about at all (I could be compeltely off base) since it's my first car and since I am, for all intents and purposes, a novice driver, it fairly attractive to lease and not care as much. Don't want to be in a situation where I own but I f up the car in some way (but again not sure whether this point actually makes logical sense).

[Anonymous]

I just leased an IQ.4 for the same reasons. I've never leased before and have always been a proponent of paying cash for cars, but in the case of an EV, we felt it makes sense, given the expected advances in technology and the $7,500 rebate for leasing an EV. With a 3-year lease, we have free charging covered for the duration and it is under warranty the entire time. In 3 years, we will assess and decide whether to upgrade to a newer EV or move to hybrid or back to gas. I honestly don't think buying an EV is that prudent--EVs depreciate more than any other type of car. BTW, I'm loving the IQ.4 so far.

[Anonymous]

Anonymous wrote:I just leased an IQ.4 for the same reasons. I've never leased before and have always been a proponent of paying cash for cars, but in the case of an EV, we felt it makes sense, given the expected advances in technology and the $7,500 rebate for leasing an EV. With a 3-year lease, we have free charging covered for the duration and it is under warranty the entire time. In 3 years, we will assess and decide whether to upgrade to a newer EV or move to hybrid or back to gas. I honestly don't think buying an EV is that prudent--EVs depreciate more than any other type of car. BTW, I'm loving the IQ.4 so far.

Does that rebate depend on the customer's income tax bracket?

Also, what was the cap cost reduction upfront?

And what did it cost to get a charging station in your house?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I just leased an IQ.4 for the same reasons. I've never leased before and have always been a proponent of paying cash for cars, but in the case of an EV, we felt it makes sense, given the expected advances in technology and the $7,500 rebate for leasing an EV. With a 3-year lease, we have free charging covered for the duration and it is under warranty the entire time. In 3 years, we will assess and decide whether to upgrade to a newer EV or move to hybrid or back to gas. I honestly don't think buying an EV is that prudent--EVs depreciate more than any other type of car. BTW, I'm loving the IQ.4 so far.

Does that rebate depend on the customer's income tax bracket?

Also, what was the cap cost reduction upfront?

And what did it cost to get a charging station in your house?

The $7,500 rebate for leasing has no income requirement, but there is a $300,000 limit if you purchase an EV. Capital cost reduction was $13,000. I'm pretty sure we got a good deal. We have not gotten the charger installed, but it will probably be around $700, but there are some discounts and rebates to be had. I also believe we will get a $3,000 tax credit from Maryland: https://410energy.com/maryland-electric-vehicle-tax-credits/

[Anonymous]

Anonymous wrote:I just leased an IQ.4 for the same reasons. I've never leased before and have always been a proponent of paying cash for cars, but in the case of an EV, we felt it makes sense, given the expected advances in technology and the $7,500 rebate for leasing an EV. With a 3-year lease, we have free charging covered for the duration and it is under warranty the entire time. In 3 years, we will assess and decide whether to upgrade to a newer EV or move to hybrid or back to gas. I honestly don't think buying an EV is that prudent--EVs depreciate more than any other type of car. BTW, I'm loving the IQ.4 so far.

Is it free charging anywhere (including at home) or do you have to go to certain approved places? THanks.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I just leased an IQ.4 for the same reasons. I've never leased before and have always been a proponent of paying cash for cars, but in the case of an EV, we felt it makes sense, given the expected advances in technology and the $7,500 rebate for leasing an EV. With a 3-year lease, we have free charging covered for the duration and it is under warranty the entire time. In 3 years, we will assess and decide whether to upgrade to a newer EV or move to hybrid or back to gas. I honestly don't think buying an EV is that prudent--EVs depreciate more than any other type of car. BTW, I'm loving the IQ.4 so far.

Is it free charging anywhere (including at home) or do you have to go to certain approved places? THanks.

Free charging at Electrify America chargers. I also have free charging in my office garage. We will get a level 2 charger at our home.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just leased an IQ.4 for the same reasons. I've never leased before and have always been a proponent of paying cash for cars, but in the case of an EV, we felt it makes sense, given the expected advances in technology and the $7,500 rebate for leasing an EV. With a 3-year lease, we have free charging covered for the duration and it is under warranty the entire time. In 3 years, we will assess and decide whether to upgrade to a newer EV or move to hybrid or back to gas. I honestly don't think buying an EV is that prudent--EVs depreciate more than any other type of car. BTW, I'm loving the IQ.4 so far.

Does that rebate depend on the customer's income tax bracket?

Also, what was the cap cost reduction upfront?

And what did it cost to get a charging station in your house?

The $7,500 rebate for leasing has no income requirement, but there is a $300,000 limit if you purchase an EV. Capital cost reduction was $13,000. I'm pretty sure we got a good deal. We have not gotten the charger installed, but it will probably be around $700, but there are some discounts and rebates to be had. I also believe we will get a $3,000 tax credit from Maryland: https://410energy.com/maryland-electric-vehicle-tax-credits/

\

$13,000 capital cost reduction is a LOT for a leased car, IMO. What are the monthly payments/length?

[Anonymous]

36 mos/~$400 per month

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just leased an IQ.4 for the same reasons. I've never leased before and have always been a proponent of paying cash for cars, but in the case of an EV, we felt it makes sense, given the expected advances in technology and the $7,500 rebate for leasing an EV. With a 3-year lease, we have free charging covered for the duration and it is under warranty the entire time. In 3 years, we will assess and decide whether to upgrade to a newer EV or move to hybrid or back to gas. I honestly don't think buying an EV is that prudent--EVs depreciate more than any other type of car. BTW, I'm loving the IQ.4 so far.

Is it free charging anywhere (including at home) or do you have to go to certain approved places? THanks.

Free charging at Electrify America chargers. I also have free charging in my office garage. We will get a level 2 charger at our home.

Not Electrify America chargers are highly unreliable -- Google around for many articles on this. However, you can use any charger just you may have to pay. It's not much -- cheaper than a tank of gas!

We have an EV but only drive it around town, so just charge at home.

[Anonymous]

Anonymous wrote:36 mos/~$400 per month

So you are paying $27k to lease the car (well, more like $20k after the rebate) for three years? What’s the residual value at the end of the lease?

That’s almost $670 a month and you will have nothing to show for it after three years .

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just leased an IQ.4 for the same reasons. I've never leased before and have always been a proponent of paying cash for cars, but in the case of an EV, we felt it makes sense, given the expected advances in technology and the $7,500 rebate for leasing an EV. With a 3-year lease, we have free charging covered for the duration and it is under warranty the entire time. In 3 years, we will assess and decide whether to upgrade to a newer EV or move to hybrid or back to gas. I honestly don't think buying an EV is that prudent--EVs depreciate more than any other type of car. BTW, I'm loving the IQ.4 so far.

Does that rebate depend on the customer's income tax bracket?

Also, what was the cap cost reduction upfront?

And what did it cost to get a charging station in your house?

The $7,500 rebate for leasing has no income requirement, but there is a $300,000 limit if you purchase an EV. Capital cost reduction was $13,000. I'm pretty sure we got a good deal. We have not gotten the charger installed, but it will probably be around $700, but there are some discounts and rebates to be had. I also believe we will get a $3,000 tax credit from Maryland: https://410energy.com/maryland-electric-vehicle-tax-credits/

To clarify, the 13000 cap cost reduction, is this the amount of the down payment (I guess) you put down on the lease?

Not familiar with lease terms or even leasing in general but that seems a little high (if down-payment).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I just leased an IQ.4 for the same reasons. I've never leased before and have always been a proponent of paying cash for cars, but in the case of an EV, we felt it makes sense, given the expected advances in technology and the $7,500 rebate for leasing an EV. With a 3-year lease, we have free charging covered for the duration and it is under warranty the entire time. In 3 years, we will assess and decide whether to upgrade to a newer EV or move to hybrid or back to gas. I honestly don't think buying an EV is that prudent--EVs depreciate more than any other type of car. BTW, I'm loving the IQ.4 so far.

Does that rebate depend on the customer's income tax bracket?

Also, what was the cap cost reduction upfront?

And what did it cost to get a charging station in your house?

The $7,500 rebate for leasing has no income requirement, but there is a $300,000 limit if you purchase an EV. Capital cost reduction was $13,000. I'm pretty sure we got a good deal. We have not gotten the charger installed, but it will probably be around $700, but there are some discounts and rebates to be had. I also believe we will get a $3,000 tax credit from Maryland: https://410energy.com/maryland-electric-vehicle-tax-credits/

To clarify, the 13000 cap cost reduction, is this the amount of the down payment (I guess) you put down on the lease?

Not familiar with lease terms or even leasing in general but that seems a little high (if down-payment).

We put a few thousand down, but the majority of that amount is the rebate and dealer incentives.

[Anonymous]

Reanimating this thread because we’re considering leasing an EV or PHEV after learning about the fed rebate loophole and the idea that leasing vehicles in this class makes sense because of rapid technology changes.

Would love to hear any tips or guidance, especially around negotiating price. I’ve historically done well negotiating good prices when buying/financing, but I’m curious whether there are any differences or things to be aware of when leasing.

Thanks!