Why It's Cheaper to Lease a New Electric Car Than to Buy One Used - Wired

Nissan Leaf. Kārlis Dambrāns/Flickr

The high price of electric cars is one of the issues holding them back from widespread adoption. But if you think you can get around paying the extra cash by picking up a used ride, think again. In many cases, buying someone's old EV isn't any cheaper than getting a new one.

It comes down to the government's preferred way of encouraging people to drive EVs: tax credits. The federal credit is $7,500. That's a bottom-line credit, so if you're not paying at least that much in federal taxes, you're not getting the full benefit. (Various states offer different credits, or none at all.)

That leads people to lease EVs instead. The financing company that buys the new car from the automaker gets the full tax credit, so it can pass those savings to the lessee in the form of lower monthly payments. That's why you can get a new Nissan Leaf for $2,400 down and $199 a month for 36 months.

It's hard for used EVs to compete with lease rates this low, because the tax credit isn't passed down. Kelley Blue Book estimates a 2012 Leaf with 33,000 miles on the odometer will sell for $15,000. If you put down 10 percent on a 4-year term at 4 percent interest, you're paying $305 a month. Throw in the fact that we don't have a good handle on how EV batteries degrade over time (though most have good warranties), and there's no reason not to grab a new one.

That being said, the EV market as a whole is very young. We've focused on the Leaf here because it's the only fully electric, non-luxury car that's been sold nationwide for the past few years, so it's the only used EV most people can buy today. (There is a used market for the Tesla Model S, but mostly because some buyers don't feel like waiting several months to get a new one.)

We should have more data soon. The first Chevy Volt and Nissan Leaf models bought in 2011 are coming off their three-year lease terms, which will give us a better idea of how the used electric market will take shape. Even then, it will only tell us about the used market for two car models. "Nissan Leaf used car values say a lot about the value of the Leaf, or maybe any 80-mile range EV" noted electric vehicle advocate Chelsea Sexton. There are "no reasonable conclusions to draw in terms of market appetite for used EVs."

Source : http://www.wired.com/2014/08/why-its-cheaper-to-lease-a-new-electric-car-than-to-buy-one-used/