To lease, or to buy? That is the question...

[mitchev]

What do you think? Would you lease or outright buy the Bolt EV when it comes out later this year?

I seem to remember the Nissan LEAF dropping in value quite fast because of battery degradation etc issues, but actually recently I saw an article discussing how well LEAFs had held their value from 2011 until now.

So I think if you compare it to an entry level gasser, they hold their value, but if you think about wanting a 500 mile EV in 2022, then you would be better off leasing and trading up at the end of the 5 year term.... I'm still undecided.

This is of course assuming that GM will offer some sort of reasonable residual values and monthly payment options on the Bolt EV...

 

[ssspinball]

I have yet to see an EV from anyone but Tesla that made sense to buy. I don't think it matters how long you plan on keeping it, because you can get federal/state rebates in the US with each new lease, the technology on these is changing extremely fast, and the residuals for most EVs are currently WAY artificially high. All of these factors combine to make a lease the obvious and, somewhat shockingly, the cheapest choice in most scenarios.

I kept my last gas car for 10 years, so I understand why that makes sense but it's simply a different world right now with EVs. I imagine that in another decade from now this situation with rebates and doubling of range per generation will go away and buying will once again make more sense than leasing.

The one scenario where a lease may not make sense is if you drive a high number of miles per year. Then it depends on the cost per mile overage fee, but it still may make sense even with that additional cost.

 

[DucRider]

... you can get federal/state rebates in the US with each new lease.....

6 months after the quarter a manufacturer hits 200K in EV sales (and GM is almost halfway there), the $7500 federal income tax credit (not a rebate) drops to 50%, then 6 months later it is 25%, then it drops to 0 in another 6 months.
It is extremely unlikely there will be a federal tax credit available on GM (or Tesla) cars after a 3 year lease on a Bolt.

Low lease payments usually are at least partially facilitated by a an unrealistically high residual. Many LEAF lessees were offered $5-7K off the residual price if they would purchase the car at lease end. They wound up with a much better deal than those that purchased initially.

 

[michael]

I have yet to see an EV from anyone but Tesla that made sense to buy. I don't think it matters how long you plan on keeping it, because you can get federal/state rebates in the US with each new lease, the technology on these is changing extremely fast, and the residuals for most EVs are currently WAY artificially high. All of these factors combine to make a lease the obvious and, somewhat shockingly, the cheapest choice in most scenarios.

I kept my last gas car for 10 years, so I understand why that makes sense but it's simply a different world right now with EVs. I imagine that in another decade from now this situation with rebates and doubling of range per generation will go away and buying will once again make more sense than leasing.

The one scenario where a lease may not make sense is if you drive a high number of miles per year. Then it depends on the cost per mile overage fee, but it still may make sense even with that additional cost.

I agree with all this. In addition, battery fade makes it even riskier to own an EV.

Ford is quite flexible in lease mileage. I have over 58,000 miles available on my three year lease (19.5K mile/year) on a Focus electric, and even greater mileage was available. Friends got a RAV-4 EV with an unlimited mile lease...they will hit 80,000 in three years.

 

[columbo]

Low lease payments usually are at least partially facilitated by a an unrealistically high residual. Many LEAF lessees were offered $5-7K off the residual price if they would purchase the car at lease end. They wound up with a much better deal than those that purchased initially.

Very interesting, I did not know that!

 

[Mailman13]

Low lease payments usually are at least partially facilitated by a an unrealistically high residual. Many LEAF lessees were offered $5-7K off the residual price if they would purchase the car at lease end. They wound up with a much better deal than those that purchased initially.

Very interesting, I did not know that!

My $28,000 2013 Leaf "S" model would have cost me $8800 to purchase. Then add tax and $300 purchase fee. The residual was around $15,300 and they offered me $6500 off of that.

I decided not to get it because of the upcoming Bolt and Tesla 3.

 

[marta]

My $28,000 2013 Leaf "S" model would have cost me $8800 to purchase. Then add tax and $300 purchase fee. The residual was around $15,300 and they offered me $6500 off of that.

I decided not to get it because of the upcoming Bolt and Tesla 3.

Mailman, do you think that was a good price for a buyout of the LEAF after lease, and you would have done it if the Bolt EV and Tesla Model III weren't on the horizon? I couldn't tell if your post when it was a poor offer, or if you were holding out for a 200 mile EV...

 

[Mailman13]

My $28,000 2013 Leaf "S" model would have cost me $8800 to purchase. Then add tax and $300 purchase fee. The residual was around $15,300 and they offered me $6500 off of that.

I decided not to get it because of the upcoming Bolt and Tesla 3.

Mailman, do you think that was a good price for a buyout of the LEAF after lease, and you would have done it if the Bolt EV and Tesla Model III weren't on the horizon? I couldn't tell if your post when it was a poor offer, or if you were holding out for a 200 mile EV...

Marta, I would not have purchased the Leaf at $8800 plus, because of the range issue in the Winter. I still had 12 bars, but I could just "feel" that first bar ready to drop off.

When driving to work on the interstate with the heat on, I could literally see the numbers dropping on the GOM. Guess-O-Meter. Good thing I had the 240 volt, 30 amp power supply at my house. I could get fully charged in 4.5 hours.

I really miss the Leaf though. No maintenance, no stopping at the gas stations, fast off the line and around Town. Also, the Leaf would stop as quick as it would go.

I would leave people sitting at the traffic lights all of the time. Maybe it was because they were reading my car tag, "100% Electric, You buy gas".

 

[Rivu]

I guess I'll lease the Chevy Bolt EV, first. Test it a bit before deciding to buy, you know! I think a lot of Chevy Bolt forum members are thinking of leasing too.

 

[JPWhite]

What do you think? Would you lease or outright buy the Bolt EV when it comes out later this year?

I seem to remember the Nissan LEAF dropping in value quite fast because of battery degradation etc issues, but actually recently I saw an article discussing how well LEAFs had held their value from 2011 until now.

So I think if you compare it to an entry level gasser, they hold their value, but if you think about wanting a 500 mile EV in 2022, then you would be better off leasing and trading up at the end of the 5 year term.... I'm still undecided.

This is of course assuming that GM will offer some sort of reasonable residual values and monthly payment options on the Bolt EV...

I bought my 2011 LEAF. At the time they wanted $450/month to lease it. A few years later the $199 lease deals came along. I am slightly ahead of break even having bought, but with a worn out battery I have a choice to make. The Bolt needs to be available today

As for the Bolt EV, the best option will depend upon price. If the lease deals are good, its the obvious choice, if not buying may make sense.

When it comes available I'll make my choice then. I favor leasing if the costs are comparable. I intend to buy a Model 3, the Bolt would get me to the Model 3. If the Bolt is great then buying at end of lease for my wife would be an option and we would totally free from gas. Could all happen in a few years..