SALESFUEL TODAY

Why Dealerships Should Promote Leasing Electric Vehicles Instead of Buying

by | 2 minute read

"For most American car shoppers interested in a pure electric vehicle (EV), the technology can present a host of unfamiliar considerations, says Consumer Reports. For that reason, CR believes leasing, rather than buying, makes the most sense."

"Here are a few reasons:"

"Newest tech. Leases have limited ownership periods, usually between two and four years, giving shoppers access to the latest technology because they can turn in the EV at the end of the lease for an upgrade. EV owners are more likely to be technology enthusiasts than the typical new-car buyer is, says Ed Kim, vice president of industry analysis at automotive consulting firm AutoPacific, so they’ll want the freshest tech. As with almost any lease, payments are lower than a regular monthly payment for a vehicle purchase."

"Tax credits. Another appeal is the availability of tax credits, whether federal or state. Still, shoppers who choose to lease an EV need to pay particular attention to those because it’s the leasing company, not the consumer, that’s entitled to the credit, says Mel Yu, a CR auto analyst. 'They often pass the credit on to the consumer, and that’s reflected in a reduced cost for the lease,' he says. 'But they aren’t required to do this, so shoppers should confirm before signing any paperwork.'”

"Depreciation. That’s the value a car loses over time. It’s a factor for any car buyer, but it hits EVs harder. Yu says EVs depreciate faster than regular cars because tax credits effectively lower the original price of the car, but leases typically factor that into the payment equation. “A vehicle usually loses around 50 percent of its value in three years,” says Yu. “Buyers can owe more on their loan than the vehicle is worth.” As with any lease, there are restrictions, such as how many miles can be driven and how much wear and tear can be inflicted."

It makes sense that shoppers concerned with technology would be well-versed in it themselves. According to AudienceSCAN, Electric Vehicle Shoppers own smartphones, Windows computers, tablets, and voice-activated smart speakers. Best of all, they're susceptible to ads through all of these devices, including mobile, sponsored search results, email, internet banner ads and radio ads, both over-the-air and digital.

AudienceSCAN data is available for your applications and dashboards through the SalesFuel API. In addition, AdMall contains industry profiles on auto dealerships, as well as lead lists at the local level. Media companies, sales reps and agencies can access this data with a subscription to AdMall from SalesFuel.

Rachel Cagle

Rachel Cagle

Rachel is a Research Analyst, specializing in audience intelligence, at SalesFuel. She also helps to maintain the major accounts and co-op intelligence databases. As the holder of a Bachelors degree in English from The Ohio State University, Rachel helps the rest of the SalesFuel team with their writing needs.