Dive Brief:
- Leasing an electric vehicle is the least expensive way to get a new car, according to a report Wednesday by Energy Innovation Policy & Technology, an energy and climate policy think tank.
- EV leases are up to $500 less per month than those for comparable gas-powered vehicles, saving new car shoppers as much as $6,000 annually.
- New car buyers can also save up to about $400 monthly by purchasing an EV, with more than half of EV models costing less to finance than similar gas-powered alternatives.
Dive Insight:
Helping new car shoppers find affordable ways to get into EVs could spur greater adoption. According to a July survey by Autolist.com, high prices are one of the largest barriers to EV adoption in the U.S., especially among low-income shoppers.
The Energy Innovation study found lower lease prices, federal tax incentives for EV leases, rising interest rates, and lower operating and maintenance expenses make leasing an EV the cheapest option for new car shoppers. When federal EV tax credits are passed onto consumers, they lower average monthly lease prices 12%, the study found.
Leasing a Tesla Model Y, for example, costs an average of $425 less per month than leasing a BMW X4, the study says.
“All compared EV models are cheaper in every [U.S.] state to lease and operate than the equivalent gasoline model,” the report says, except the Ford F-150 Lightning, Chevrolet Bolt EUV, Nissan Leaf, Volvo XC40 and Hyundai Kona Limited. “Because leases are paid monthly with little or no down payment, new car buyers can realize savings the day they drive the car off the lot.”
The Energy Innovation study examined the costs of buying and leasing comparable EVs and gas-powered vehicles in all 50 states, evaluating financing and leasing costs, state taxes and fees, state and federal rebates and tax credits, fuel expenses, and insurance and maintenance costs, the report says.
