Should you buy or lease an electric vehicle in Canada?

Considering purchasing an electric vehicle in Ontario as a way to go green? With plenty of EV options hitting the roads in Canada and even more electric vehicles on the horizon, you may wonder if it’s a wiser move to start with a lease, or just go straight for the buy. Since EVs cost more than their gas-powered counterparts, you might be wondering whether leasing or buying an EV is better for you. 

Should you buy or lease an electric vehicle in Canada? Making the best decision regarding whether to lease or purchase an electric vehicle depends entirely on your needs and circumstances. Each choice has its own benefits and drawbacks.

There are some significant distinctions between leasing an EV and purchasing one altogether. To make the choice that is best for you, read through this article to help you make a smart decision.

Reasons to Lease an EV in Canada 

Depreciation

In general, EVs tend to lose value more quickly than equivalent gas-powered cars. This is due to the fact that manufacturers replace older models with higher battery life and performance every few years, while the newer ones suffer from an accelerated rate of depreciation.

In most economic conditions, you can find the BMW i3 and Nissan Leaf for a fraction of their original MSRP. These two vehicles were among the first mass-market EVs to be marketed at affordable rates when new. It can be more advantageous to lease an EV than it would be to lease a traditional car because EVs tend to be like smartphones, which develop significantly every couple of years.

With leasing, you will be locked into a specific residual value, which is the estimated amount the EV will be worth when the lease expires. Therefore, you will not lose money if the car’s eventual resale value is lower than anticipated when your lease expires.

Lower monthly payment

When you lease, you are committed to a predetermined residual that is determined by the automaker based on the vehicle’s anticipated resale value. As a result, you are covering the EV’s anticipated depreciation. However, because of the rapid depreciation, if you are financing an EV, you may owe more on your loan than the value of your EV. Compared to financing the same EV, you can anticipate lower monthly payments.

Reasons to Buy an EV in Canada 

Flexibility

The key benefits of purchasing an EV are its full flexibility, which is a good reason to do so. Although you can have a depreciation hit, you won’t be penalized for damage, mileage, restrictions, or EV customizations. You also have the option to swap in your new EV for another car if you decide you don’t like it. You can always sell it or exchange it for a different vehicle without paying the full duration of the lease or through a third-party lease transfer firm, because you are locked into the lease.

Additionally, if you run a business, you may be eligible for a zero-emission business tax write-off for electric vehicles in Canada with zero emissions, such as electric vehicles, hybrid electric vehicles, and hydrogen fuel cell vehicles. Up to $55,000 of the purchase price can be written off by Canadian corporations the year the vehicle is put into service.

Purchasing a new EV when a newer model is released is also beneficial. Even when you’re dealing with a depreciation hit, buying any car always gives you the most flexibility. 

Good Reasons to Lease or Buy an EV in Canada 

Whether you lease or purchase an EV, you get all the benefits of driving an electric vehicle.

An electric vehicle isn’t much to replace or break down if there isn’t an internal combustion engine or multiple gear transmission. Compared to a gasoline engine, electric motors require less maintenance and have fewer moving components. 

Your operating expenses with an EV are what are most advantageous, whether you buy or lease an EV in Canada. You will undoubtedly pay less to drive and recharge an EV than any similar gasoline or diesel vehicle, provided that your local power rates are low enough and you don’t frequently fast-charge at public stations.

In addition, whether you buy or lease an electric vehicle in Canada, you will be eligible for the EV incentives. Canadians who purchase or lease an EV can take advantage of point-of-sale incentives from the Canadian government of $2,500 to $5,000.

In the end, you’ll have to do the math and decide what’s best for you. Leasing offers security against long-term depreciation and the advantages of incentives, but purchasing gives you greater discretion over how long you want to own the vehicle.

Whether you choose to buy or lease an electric vehicle, Carnex is here to assist you! If you’re looking for a quality used electric car at a reasonable price and with a worry-free purchasing process, you have come to the right place!

Simply visit our online showroom to choose the best used electric car for you, Carnex allows you to purchase your vehicle 100% online. You can complete the purchase paperwork and arrange financing online with Carnex without leaving the comfort of your home.

Learn more about the benefits of buying from Carnex. We believe that all clients deserve to know the good and bad of what they’re buying. Because we wanted to know these when we bought cars. That’s why at Carnex.ca, we will proudly display every detail every step of the way. Browse all the best cars, automobile buying tips, auto insurance, young drivers, driving techniques, auto industry trends from Carnex Blog.