According to a recent study conducted by Energy Innovation, a nonpartisan energy and environmental policy firm, leasing an electric vehicle (EV) stands out as the most cost-effective approach to acquiring a new car. The study, released by Energy Innovation, revealed that opting for an EV lease can result in substantial savings for drivers, exceeding $400 per month when compared to leasing a gasoline-powered vehicle of similar specifications or purchasing either an EV or a traditional combustion engine car.
Rachel Goldstein, a research and modeling manager at Energy Innovation and one of the report’s co-authors, highlighted the financial advantages of electric vehicles, particularly when the manufacturer’s suggested retail price (MSRP) is in close proximity between the gasoline and electric versions of a vehicle. Goldstein emphasized that the lower operational and maintenance costs, as well as reduced fueling expenses associated with EVs, contribute significantly to these savings.
One key factor contributing to these savings is the availability of commercial EV tax credits for consumer leases. These credits, as indicated by the U.S. Treasury, can be applied to consumer EV leases. Given that EVs are often more expensive upfront compared to their gasoline counterparts, leasing becomes an attractive option for individuals seeking to spread out their expenses while enjoying the long-term benefits of reduced fueling and maintenance costs.
Energy Innovation’s research demonstrated specific examples of these savings, such as leasing the Tesla Model Y, which is on average $425 less per month than leasing a gasoline-powered BMW X4. Similarly, leasing the Kia Niro EV can yield savings of $367 per month compared to leasing the gasoline version of the Kia.
The savings associated with EV leasing arise from a combination of factors. First, there’s the $7,500 tax credit for leased EVs, which is part of the Inflation Reduction Act. Additionally, higher interest rates can impact those seeking to purchase a vehicle, making lease payments more attractive since they are generally lower. While not all dealers pass the tax savings on to consumers, roughly half do. Ford, Nissan, Tesla, and Chevrolet are among those not passing on the credit, while Hyundai, Kia, Volvo, Volkswagen, and BMW are reported to do so.
Even after the tax credit eventually expires, leasing an EV is expected to remain a cost-effective option for many consumers. This is primarily due to the lower fueling and maintenance costs associated with electric vehicles when compared to their gasoline counterparts. Moreover, if gasoline prices rise, as they did in recent years, leasing an EV could offer even greater savings.
View more about the study at AutoNews.com.
Source: AutoNews (subscription required)
