When is leasing better than buying?

[Anonymous]

Sometimes there are really good promotions on leases. There is also a loophole right now that allows you to take 7500 tax credit if you lease an ev even if your income is high. If I were getting an ev I would definitely go for a lease to take advantage of that. Also, I think ev leases way overestimate the residual value of the car, which keeps the lease payments low.

[Anonymous]

Anonymous wrote:Sometimes there are really good promotions on leases. There is also a loophole right now that allows you to take 7500 tax credit if you lease an ev even if your income is high. If I were getting an ev I would definitely go for a lease to take advantage of that. Also, I think ev leases way overestimate the residual value of the car, which keeps the lease payments low.

So in this scenario the total cost for ownership (you buy out the car at end of time?) will be lower than buying/financing? Or just the leased term is an especially good deal and then you are back on car market at end?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sometimes there are really good promotions on leases. There is also a loophole right now that allows you to take 7500 tax credit if you lease an ev even if your income is high. If I were getting an ev I would definitely go for a lease to take advantage of that. Also, I think ev leases way overestimate the residual value of the car, which keeps the lease payments low.

So in this scenario the total cost for ownership (you buy out the car at end of time?) will be lower than buying/financing? Or just the leased term is an especially good deal and then you are back on car market at end?

Back to buying a much cheaper and better ev in 3 years

[Anonymous]

Best for us has usually been a one-year-old used car in excellent condition, paid for in cash.

[Anonymous]

Anonymous wrote:I was also a big believer in buying, and have had my current car for 18 years, the previous car for 10 years.

But... Now I want to drive an EV. But I'm convinced that the technology is going to be much, much better in 2 or 3 years (battery life longer, etc). So for the first time, I'm considering leasing an EV for 3 years, and then purchasing a newer car after that, when the technology is better.

Same here.

[Anonymous]

For EVs, it makes a lot of sense to lease vs buy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I was also a big believer in buying, and have had my current car for 18 years, the previous car for 10 years.

But... Now I want to drive an EV. But I'm convinced that the technology is going to be much, much better in 2 or 3 years (battery life longer, etc). So for the first time, I'm considering leasing an EV for 3 years, and then purchasing a newer car after that, when the technology is better.

Same here.

Yes this the one situation where leasing makes sense over buying. I just got to the end of a 2 year lease for an EV and upgraded to a new one. Really happy that I didn’t “settle” (though I loved my first EV) at the time.

[Anonymous]

Anonymous wrote:Sometimes there are really good promotions on leases. There is also a loophole right now that allows you to take 7500 tax credit if you lease an ev even if your income is high. If I were getting an ev I would definitely go for a lease to take advantage of that. Also, I think ev leases way overestimate the residual value of the car, which keeps the lease payments low.

Up to 300k I think? Why is it a loophole?

[Anonymous]

Up to 150/300 if you buy, no limit if you lease

[Anonymous]

Anonymous wrote:I was also a big believer in buying, and have had my current car for 18 years, the previous car for 10 years.

But... Now I want to drive an EV. But I'm convinced that the technology is going to be much, much better in 2 or 3 years (battery life longer, etc). So for the first time, I'm considering leasing an EV for 3 years, and then purchasing a newer car after that, when the technology is better.

What convinced you about this? What’s the significance of the next 2/3 years that there’s going to be a breakthrough? I’m only following EV casually but other than more new cars/choices on the market not much else is new or different?

[Anonymous]

The best deal is buying a used car coming off a three year lease that is certified pre-owned. If it has less than 25k miles you can get a really good car. Or, buy a dealer demo car with under 5k miles with an extended warranty. There is no reason to pay a premium for a new car as it loses at least 15% of its value as soon as you drive it off the lot.

[Anonymous]

Anonymous wrote:Up to 150/300 if you buy, no limit if you lease

Ah got it thx

[Anonymous]

Anonymous wrote:I was also a big believer in buying, and have had my current car for 18 years, the previous car for 10 years.

But... Now I want to drive an EV. But I'm convinced that the technology is going to be much, much better in 2 or 3 years (battery life longer, etc). So for the first time, I'm considering leasing an EV for 3 years, and then purchasing a newer car after that, when the technology is better.

Friend of mine just did this with exactly the same reasoning. Time will tell if he was correct.

[Anonymous]

Never.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sometimes there are really good promotions on leases. There is also a loophole right now that allows you to take 7500 tax credit if you lease an ev even if your income is high. If I were getting an ev I would definitely go for a lease to take advantage of that. Also, I think ev leases way overestimate the residual value of the car, which keeps the lease payments low.

Up to 300k I think? Why is it a loophole?

$300k isn’t high income around here.