If you are in the market for a new car, you have probably thought about getting an electric vehicle. With tons of automakers looking to electrify their vehicle lineups over the next few decades, the market will see a major influx of EV models. This could be the time for you to take the plunge and choose an electric vehicle rather than a fossil-fuel-powered car.
One question is whether you should buy or lease an electric car. It’s no secret that zero-emission cars are super expensive, and thanks to an increase in prices of EV battery metals such as lithium, EV production costs have increased and forced automakers to hike the vehicle prices.
In this landscape, you may be wondering whether it would be better to lease or buy. The truth is that it depends.
Leasing can be a great option because it allows you to experience what it would be like to own an electric car without having to commit tens of thousands of dollars. And with the EV industry more than a decade old, there are plenty of used EVs for drivers to lease on a short-term basis at affordable rates. If you choose to lease rather than buy an EV, you will enjoy smaller down payments, lower monthly payments, and a built-in exit date.
The leasing company will be in charge of vehicle maintenance, and you can decide to extend your lease, switch to fossil fuel cars or even purchase an EV based on your experience with the lease. On the other hand, note that you will not be able to get out of the lease until the lease term expires unless you pay the remaining lease balance. Furthermore, you probably won’t be able to benefit from federal EV incentives such as tax credits because you do not own the electric car.
You may also have to contend with a limited range (45,000 miles per 36-month lease). Finally, you may not be able to get an EV on lease terms depending on your location because some automakers do not offer electric vehicle leases in certain countries or states.
Buying is definitely the more expensive option. The average electric vehicle will cost you tens of thousands of dollars to purchase, with some luxury models costing as much as $100,000. The benefit of buying is that, unlike leasing, you can get your cash back if you choose to sell the electric car. Additionally, you will also be eligible for federal EV tax credits as the owner of the EV.
You also get to enjoy unlimited mileage as the owner of your own EV. However, you will have to contend with higher down payments and monthly payments compared to leasing. You will also have to cover all maintenance and repair costs on your own.
As you can see, each option has its own pros and cons. Analyzing and comparing the cost implications of leasing compared to buying will help you make the most suitable decision for yourself regardless of whether you are considering a model from Mullen Automotive Inc. (NASDAQ: MULN) or one from another automaker.
NOTE TO INVESTORS: The latest news and updates relating to Mullen Automotive Inc. (NASDAQ: MULN) are available in the company’s newsroom at https://ibn.fm/MULN
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