The vast majority of the motoring public will at some stage have come across the possibility of leasing their vehicle although many of us prefer to buy them out right. The fact that gasoline/diesel cars are pretty much at the forefront of their technology means that buying a vehicle would not necessarily lead to you missing out on significant technological advances. However, is the same principle relevant to electric vehicles?
A recent report in the US suggested that up to 70% of electric vehicles are leased as opposed to 20% of gasoline/diesel vehicles. This is a significant difference in the ownership pattern for electric vehicles although there are a number of reasons why this has happened.
It is common knowledge that electric vehicles at this moment in time can cost significantly more than their gasoline/diesel counterparts at purchase. The fact that there are significant ongoing cost savings is not always appreciated by the motoring public therefore a number of people have looked to lease their electric vehicle in the short term. If you are unsure about electric vehicles then perhaps leasing is an option you should consider and then move onto your own fully purchased vehicle when prices fall?
The reality is that the cost of any new technology always begins relatively high and then falls as and when technology improves, volumes increase and base prices fall. This is something which the electric vehicle market has yet to hit but it’s something which is certainly on the radar in the medium term.
If you look at the electric vehicle of today and compare it with the electric vehicle of 10 years ago they will be like chalk and cheese. The technology we have today is well advanced from that of 10 years ago, although interestingly many experts believe we have only just scratched the surface of new and improving electric vehicle technology. As technology is moving so quickly in this particular field the likelihood is that there will be significant improvements within 12 months, two years, five years, etc. By leasing your vehicle in the short term you give yourself the potential to switch to a more high-tech vehicle in the longer term when the technological advances will most certainly begin to slow.
One thing which is becoming more and more apparent, and will help electric vehicle motorists in the long-term, is the fact that many electric car manufacturers are now working together. We have seen licensing deals by the likes of Tesla Motors, Nissan and Renault are now interlinked and this is most certainly a trend which is moving industry wide.
If you take a look at the electric vehicle market you will see some exceptional value in the leasing sector with the likes of Honda, Nissan, General Motors, etc all reducing their leasing prices. Indeed the Honda Fit EV is now a scarce commodity in California after the company reduced the monthly leasing charge leading to higher than expected sales. If leasing is seen as the way forward by electric vehicle manufacturers then we will likely see more competition in this particular area in the short term.
A significant increase in leasing activity will eventually lead to a significant increase in outright sales activity when the trust, technology and efficiency factors start to reach the top end. In the meantime there is every chance that we could see demand for the leasing of electric vehicles improve yet further.