Affordable Electric Vehicle Leasing Now Available for Under $100 Monthly Payments
In the automotive world, leases are becoming increasingly popular, especially for electric vehicles (EVs). According to Nathan Niese, global lead for electric vehicles and energy storage at Boston Consulting Group, carmakers like Ford are using current EV deals to lock in customer loyalty.
Lease contracts have fewer restrictions when it comes to qualifying for federal subsidies, making leases a favourable option for many customers. In fact, leases now comprise nearly three out of four EV transactions. Over the past two years, lease rates for electric vehicles have increased from 51% to 71%, compared to the industry average of 16%.
One such example is the Hyundai Motor Co.'s Ioniq 5, which can be leased for $260 a month after the down payment. Volkswagen's ID.4, priced just $4 more than Hyundai's offering, is another popular choice.
The Mercedes EQB, starting at $53,000 in the US, is currently one of the cheapest cars in the country. In July, Mercedes dealerships were leasing the EQB for $352 a month, including the down payment. Some local dealers are offering EV leases for significantly less than the manufacturer's suggested price. For instance, Emich VW in Boulder, Colorado, advertises the ID.4 for $39 a month.
Honda Motor Co. Ltd. is also joining the race with its first EV, the Prologue. The company offers a streamlined lease deal for $4,800 for 24 months, which equals $200 a month.
The trend towards EV leases is not just limited to the US. In a bid to sweeten EV incentives, some states are moving to offer additional incentives for electric vehicles. However, come October, EV deals may become harder to find as some automakers like CarMax phase out discounts due to the phasing out of federal tax credits.
Despite this, car companies will still be trying to build a loyal base of buyers, so discounts may continue. Once a driver goes electric, they seldom go back to gas, making it crucial for car companies to secure customer loyalty from the outset.
The future of affordable EVs is an ongoing discussion. While there are no specific automakers identified in available sources as offering electric cars priced under $40,000 in September 2022, the overall market trend indicated price increases for electric vehicles, making affordable models under 40,000 USD scarce or non-existent at that time.
However, Ford plans to release a small, electric pickup truck in 2027 for around $30,000, which CEO Jim Farley frames as a "Model-T moment". This move is expected to bring electric vehicles within reach for a larger number of consumers.
In conclusion, the race for customer loyalty in the EV market is heating up, with car companies offering deeply discounted offers on battery-powered machines to lock in loyal customers before losing federal tax credits. As the market continues to evolve, we can expect to see more affordable EV options becoming available in the near future.
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