Buying an Electric Car vs. Leasing
When you’re looking at an electric car, there are more things to consider than in the traditional buying versus leasing decision. If you buy an EV, you can take advantage of any tax incentives and rebates, but if you lease, the leasing company usually takes them.
Automakers often offer outstanding lease deals as they try to put enough vehicles on the street to meet federal and state mandates. At one point in 2016, Fiat was offering a $69 per month lease deal on the Fiat 500E in California.
If you buy an EV today, you’re gambling that the car will retain its value as technology rapidly evolves around it. Would you buy an iPhone when you know that there’s a new one around the corner? Just a couple of years ago, it was tough to find an affordable EV with a range that approached 100 miles, but now the 2017 Chevrolet Bolt EV has a range of 238 miles on a single charge.
If you’re planning to keep the car until the wheels fall off, buying might be a good strategy, but if you want the latest technology, trying to keep up with the pace of innovation with rapidly depreciating cars will get very expensive.
The Used Electric Car Option
If you’re willing to drive a vehicle that’s a few years old, without the range of current models, buying a used EV can be a great money-saving solution. Someone else gets to take the depreciation, and you get a car with the potential to save you thousands in fuel expenses.
For example, early Nissan Leafs can be found for as little as $6,000. Even if you have to replace the battery pack, which costs about $5,500, you’ll still have a Nissan Leaf for less than half the price of a new car.
With so many EVs being leased, there are also opportunities to find certified used electric vehicles with warranty coverage for far lower prices than new models.
Shades of Green: Plug-In Hybrids
If you’re not quite willing to make the leap to a full EV, there’s a step that gets you halfway there without the range anxiety that scares many potential EV buyers away.
Plug-in hybrids can travel between about 20 and 50 miles on electricity alone (depending on the model) before automatically switching over to a gasoline engine. You can charge them with electricity at your home, work, or from public charging stations, or fuel them with gasoline at any filling station.
The 2017 Toyota Prius Prime hatchback and 2017 Chevrolet Volt are a couple of high-ranking plug-in hybrids. The Prius Prime can go 25 miles on electricity alone and the Volt can go 53 miles on a single charge. Depending on the length of your commute, you might not burn any gasoline during the week and have an unlimited range for road trips on the weekends.
2017 Nissan Leaf
Price: $30,680 (Details Below)
The Nissan Leaf was one of the first battery-electric mass-market cars available in the U.S., and it still is one of the sales leaders among EVs. With a 30-kWh battery standard for 2017, the Leaf can travel up to 107 miles on a single charge.
It does, however, have some shortcomings. Its range has been eclipsed by newer electric cars, such as the 2017 Hyundai Ioniq Electric, which can travel up to 124 miles on a single charge. The Leaf’s interior features more hard plastics than rivals, and its look has gotten a bit dated.
There’s reportedly a new Leaf coming soon, so you can expect to start seeing generous new car deals on the existing Nissan EV to help move them off of the lots.
2017 Chevrolet Bolt EV
Price: $36,620 (Details Below)
The 2017 Chevrolet Bolt EV sets a new benchmark in the EV world with its 238-mile range and a price tag of less than $30,000, if you’re able to take full advantage of the $7,500 federal tax credit. Not only is it a great electric car, but it also holds a top spot in our overall rankings of compact cars.
While it has a higher price tag than many rivals, it also comes with a host of features that aren’t included on other models. Every Bolt includes a large touch-screen infotainment system that supports an onboard Wi-Fi hot spot and 4G LTE data connectivity, plus support for Apple CarPlay and Android Auto.
Because of the way that electric motors deliver power, most EVs feature sprightly performance around town, with impressive acceleration off the line and nimble handling due to their battery packs that are located low in the chassis. The Bolt EV's propulsion system produces 200 horsepower, which is nearly double the power found in many rivals.
2017 Fiat 500E
Price: $32,995 (Details Below)
The subcompact 2017 Fiat 500E is only available in California and Oregon, but its small footprint and go-kart-like handling make a great city performer. Its 84-mile range isn’t as great as many rivals, but it’s plenty for running around town or for the typical daily commute.
The 500E will fully charge in about four hours when hooked up to a level two charger. Its electric motor produces 111 horsepower, which is plenty of oomph for an electric subcompact car.
You can buy a 500E for $32,995, but smart consumers will opt for one of Fiat’s subsidized leases, which can protect your wallet from the steep depreciation that the 500E will have.
2017 Kia Soul EV
Price: $32,250 (Details Below)
The 2017 Kia Soul holds one of the top spots in our rankings of compact cars. The Soul EV battery-electric model brings its unique style and versatility to the EV market, with an EPA-estimated range of 93 miles on a single charge.
Though electric vehicles are generally much quieter than their gasoline-powered counterparts, the Kia Soul EV takes it a bit further. It features a powertrain that’s nearly silent, without any of the electric motor whine common to EVs.
2016 Volkswagen e-Golf
Price: $28,995 (Details Below)
Volkswagen has updated the e-Golf for 2017, so there are great deals to be had on the still-available 2016 Volkswagen e-Golf. The 115-horsepower 2016 model has an EPA-estimated range of 83 miles, while the 134-horsepower 2017 can travel an estimated 125 miles on a single charge.
Pricing for the 2017 Volkswagen e-Golf has not been announced.
The 2016 e-Golf features an interior lined with upscale materials and plenty of interior room for both passengers and cargo. While the gasoline Golf has excellent handling, the e-Golf’s is even better due to the lower center of gravity provided by the car’s battery pack.
2017 Smart Electric Drive
Price: $23,800 (Details Below)
The redesigned 2017 Smart Electric Drive is the only EV available in both coupe and cabrio (convertible) forms. Soon, the only way you’ll be able to get a Smart in the U.S. will be as an electric car, as the gas models are set to be discontinued.
Prices for the 2017 coupe have been reduced by $1,200 from the 2016 model, while the car has received more range and power. It will also charge faster than the previous model, taking just three hours to fully recharge a depleted battery.
A 2017 Smart Electric Drive coupe will cost you $23,800, and the cabrio has a base price of $28,000 before incentives. That makes them the least expensive highway-legal electric vehicles available. If you’re looking for a nimble city car, the new smart has a turning radius of just 22.8 feet.
2017 Hyundai Ioniq Electric
Price: $29,500 (Details Below)
The 2017 Hyundai Ioniq is currently available as a hybrid or battery-electric compact car, but later in the year the Ioniq family will be complete when a plug-in hybrid arrives. The Ioniq Electric earns an EPA-estimated range of 114 miles on a single charge. Ioniq Electric prices start at $29,500.
Based on an all-new platform, the Ioniq family features an array of available safety technology including automatic emergency braking, adaptive cruise control, lane departure warning, and blind spot monitoring. All models feature standard support for both Apple CarPlay and Android Auto.
2017 Ford Focus Electric
Price $29,120 (Details Below)
The 2017 Ford Focus Electric received some major updates for the model year, including improvements that increased its range from just 76 miles in the 2016 to 115 miles. All Focus Electrics now support DC fast charging, which can fill the battery to 75 miles of range in just 30 minutes.
Focus Electric models come with Ford’s highly acclaimed SYNC 3 infotainment system and an efficiency coach that helps drivers maximize their range by depicting a digital plant growing leaves when they’re driving efficiently. Drive with more energy-sucking vigor, however, and the leaves disappear.
More Shopping Tools From U.S. News & World Report
Whether you opt for an electric car, a hybrid, or a vehicle that runs on gas or diesel, U.S. News & World Report has resources to help you find the right one at the right price. Our rankings of new cars provide insight about why some cars outperform others.
Our staff of expert researchers and journalists scour the market to find the best financing incentives and lease deals – potentially saving you thousands of dollars. Another way to save is our Best Price Program, where we work with local dealers to score guaranteed savings. On average, buyers save $3,279 off MSRP by using the program.
Recommended Articles
-
33 Roomiest Small Cars in 2019
-
Redesigned 2020 Mercedes-Benz GLS: All You Need to Know
-
8 Best Hyundai Cars and SUVs in 2019
-
17 Best Cars With Automatic Emergency Braking in 2019
-
All-New 2020 BMW X3 M and X4 M: What You Need to Know
-
2020 Kia Forte: All You Need To Know
-
2019 Best Cars for the Money
-
2019 Best Cars for Families
-
2019 Best Vehicle Brand Awards
Going Green without Spending a Lot of Cash
Tired of having a car that puts out so much pollution that Smokey Bear cries every time you drive?
Maybe it's time to look at electric cars.
Though most electric vehicles (EVs) are still more expensive than equivalent-size gasoline-powered cars, how you get one, what you buy, and how you charge can save you significant money over the life of the car. Add in generous state and federal incentives, and the idea of getting an EV starts to make more sense for many shoppers.
Not all EVs are available in every state, and each state has different incentives. While you may find many EV choices in California, if you're in Nebraska your options are more limited. Be sure to check with your tax advisor so you know what incentives you can take advantage of.
On the following slides, we'll talk about how to get an electric car, whether to buy or lease, and what models are on sale. While there are new cars arriving in the market later this year, we’ll focus on the ones that are available today. There are more expensive EVs on the market, but here we’ve stayed with the most reasonably priced cars.