Why EV Leases Are So Cheap Right Now In The U.S.

Automakers are offering steep discounts on electric vehicles, and especially on leases. In the first three months of 2024, less than a quarter of car buyers leased vehicles, but more than a third of EV buyers did. By May, nearly 70% of customers getting EVs through dealerships were leased. But EV leasing is problematic for carmakers. While the discounts suggest automakers could be offsetting losses in their EV businesses, the resale values are especially low for them.

Chapters:
00:57 Title card: Why EVs have a leasing problem
01:04 Chapter 1: Leasing and EVs
02:54 Chapter 2: Consumers and leasing
06:10 Chapter 3: Automakers and leasing
10:02 Chapter 4: Future of EV leasing

Producer: Robert Ferris
Editor: Darren Geeter
Animation: Christina Locopo
Senior Managing Producer: Tala Hadavi
Additional footage: Getty Images, Rivian, Tesla, Ford, GM, Hyundai, Polestar

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Why EV Leases Are So Cheap Right Now In The U.S.

[gxngbjq]

Oh no... car dealers are losing money. So sad.

[reggiepyrtle]

It’s not a 30% discount if the car is marked up by 50% at the dealership 😂

[SuperMachead]

Omg how horrifying….used car prices are going down…sounds great for the consumer….but we certainly don’t want that 😂😂😂😂

[regolith]

Video: This is a big problem.
Comments: It's good for customers. I see no problem.

[wshtb]

They are not cheap now. They simply had wildly unrealistic MSRP.

[rocketrollsvlogs]

Cars are priced high (media reports bad news); Car prices dropping (media reports bad news).

[Simqer]

I don't see the problem. Market gets flooded by cheap EVs, second hand EV's become more price competetive to ICE vehicles, people buy more EVs and less ICE.
Where is the problem exactly?

[Starship]

40% of vehicle owners do not own garages. We need more charging stations at least 130 kw level 3’s

[kevinjohnson]

Here’s why I leased my EV6, my car payment on a good rate for a 2020 Niro was $429 a month and the value of the car was doing nothing but depreciating, the lease on the EV6 was $255 with no cash down and they take the hit on the depreciation. Saved almost $200 a month, charge at work for free and never have to do any maintenance, the savings are insane and the cars are stylish, fun to drive and are worry free.

[MrRubme]

How are these documentaries leave out the fact that prices dramatically dropped is due to the supply chain getting balanced after Covid?

[Deathscroll]

It's also the car dealerships fought for being greedy with markups. Car manufacturers are a fault for increased prices. Both sides are price gouging. Sucks for them consumers aren't buying.

[desiv]

Or, you could check and see that lower priced EVs were selling well in this time where people were having a harder and harder time saving for a home or even paying rent, but higher priced EVs weren't selling as well as automakers hoped. And neither have sales of higher priced non-EVs.
Kia and Bolt EV sales have been good. Higher priced EV sales have had issues.
That actually makes sense to me in this market...
And the thought that used EV prices could be a bad thing? Used prices of any car doing down is a good thing for people buying.
As long as you didn't buy your car as an investment, it doesn't really matter much if the used price goes down. And the fact that it means it will be more affordable for someone needing to buy used is a good thing...
As for long term loyalty, I've have my Bolt for almost 7 years now. Just about 150k on it. Love this car. No plans on selling it in the near future, but when I do, whatever the new Bolt is at the time will be high on my list. Yes, I expect to not get much trade in value by then, but I'm fine with that. I've really enjoyed this car and it wasn't too expensive to buy in the first place.

[fcf]

Leasing eliminates battery replacement worries

[Brathsolus]

I think EV leasing is a good way to try it out. I got my reliable corolla paid off and can get me anywhere I need. EV leasing allows me to try it out and also get a feel for it without feeling like I have to commit. I’m essentially wasting money but like I said, I don’t really need a new car to own. I do see leasing as a luxury rather than that financial decision.

[KevinSmith-qiyn]

I think this is necessary for the EV market to mature. It is bringing about a glut in used vehicles which brings in younger buyers. The lease prices also allow other people who typically cannot afford an EV to the market. The problem for EV profitability is volume and dedicated production. Tesla has the volume. Most of the legacy automakers do not.

[darrendent]

Payment prices are still high imo, $300 - 500 in monthly price is expensive to me, add to the fact you don't own the car at the end of the day and you can only drive a certain amount of mileage.

[jlam]

Yeah $3500 due at signing for 36 months adds another $100/month to the payment.

[tonystorcke]

Prices have to go down. This is a good thing. They know that once people try them, they are going to like them.

[Boomboom-oqqm]

EV prices are down because Tesla used dynamic pricing and quickly dropped their prices to move sales…..Tesla is going to be the winner here. Traditional automakers are playing catch-up.

[aaammm]

We have a super duty we use to travel long distances. I am thinking of getting a couple of teslas as Dayly daily drivers. I am a fleet mechanic and the evs in the fleet have held up well.