Introduction
Car ownership seems to be a simple transaction. You either pay upfront or take out a loan, and voilà! You own a vehicle. But, with the EVs, the landscape of car ownership is changing radically. Many of us are considering the shift to electric vehicles but are faced with questions like: Are these cars cost-effective? Is it better to buy or go for a car lease? What are the financial implications? This article dives deep into the pros and cons of leasing an electric car.
Benefits of Leasing an Electric Vehicle
An EV lease comes with several financial benefits. These include:
Lower initial investment: Consider an EV whose ex-showroom price is approximately ₹23.58 lakh. If you were to buy this car on an outright basis, it's certainly a large sum to shell out. Contrastingly, a car lease would cost you around ₹45,000 per month, a significantly lower upfront cost.
Fixed monthly payments: Lower monthly payment is an advantage of an EV car lease. Car lease agreements come with fixed monthly payments, helping you manage your budget better. So, no more worries about unexpected repair costs or depreciation.
Access to the latest technology: With an EV car lease, you can drive the latest EV models without worrying about long-term commitments or obsolescence.
Maintenance and service included: Many EV lease agreements include maintenance and service packages, which means you don't have to worry about unexpected repair costs.
Pros and cons of leasing an electric car - Make the right choice
Though an EV on lease has perks, it also has some drawbacks. Here's a brief rundown:
Pros
Environmental impact: EVs produce zero tailpipe emissions, reducing carbon footprint and promoting cleaner air quality. Hence, EV car lease helps to reduce carbon emissions and promote cleaner air quality.
Flexibility: Car lease contracts offer flexibility in terms of duration and mileage options.
Risk mitigation: As EV technology evolves, an EV on lease mitigates the risk of depreciation associated with owning an EV.
Cons
Limited ownership benefits: Unlike owning a vehicle, an EV on lease does not provide the same sense of ownership or equity accumulation. You can't customise your leased EV.
Mileage restrictions: Leasing agreements often come with mileage restrictions. Exceeding these can result in additional charges.
Dependency on infrastructure: The availability of charging infrastructure for EVs is still limited in many areas in India. This could pose challenges, particularly during long journeys.
How to know if EV leasing is the right choice for you?
Now, we know the pros and cons of leasing an electric car. Let us evaluate whether an EV lease is right for you involves considering several factors:
- Driving habits:
If you have a predictable commute within the EV's range and access to charging infrastructure, EV lease could be suitable.
- Charging infrastructure:
Evaluate the availability and accessibility of charging stations in your area, both at home and in public locations. Adequate charging infrastructure is crucial for convenient EV ownership.
- Budget:
Compare the total cost of an EV car lease, including monthly payments, down payment, taxes, and fees, with the cost of owning a traditional fuel vehicle.
- Lease terms:
Review lease terms carefully, including mileage limits, wear-and-tear guidelines, and any additional fees or penalties. Ensure that the lease aligns with your driving needs and budget constraints.
- Future resale value:
Assess the resale value of the EV at the end of the lease term, considering factors such as technological advancements, market demand, and battery degradation. Ensure that the projected resale value aligns with your long-term financial goals.
Conclusion
EV car lease presents a compelling option for those looking to embrace sustainable transportation in India. It offers benefits like lower initial costs, tax advantages, and access to advanced technology. However, one must weigh the pros and cons before committing to a lease agreement. As infrastructure improves and the EV market evolves, leasing is poised to play a crucial role in accelerating EV adoption across the country.
Quiklyz, a comprehensive car subscription and leasing service provider, ensures you can enjoy the benefits of driving an electric vehicle without the hassles of ownership. With a diverse portfolio of vehicles, including EVs, you can choose a vehicle that fits your needs and have it delivered to your doorstep. Plus, the subscription fee is all-inclusive-so you needn't worry about insurance or maintenance costs!
So why wait? Explore Quiklyz today for personalised car subscription experiences!
