Is leasing a used electric car a good idea in Canada?

Is leasing a used electric car a good idea in Canada?

Due to their favorable environmental effects and lower operating costs, electric vehicles have become more mainstream in recent years. However, buying a brand new electric car can be costly, particularly for those on a tight budget. While buying used EVs is a great alternative to saving money, many prospective electric car buyers might also wonder if leasing a used electric car is a wise decision to make in Canada. 

Before making any firm decisions, Canadian EV shoppers who are considering leasing a used electric vehicle should understand the advantages and disadvantages of leasing a used electric car. In this blog, we will cover some essential factors to consider when leasing a used electric car in Canada, including the cost, lease terms, and availability of charging stations for EV shoppers as they decide whether leasing a used electric vehicle is a good option for them.

The cost benefits of leasing a used electric car

One of the main advantages of leasing a used electric car is the cost factor. Leasing a used car is often less expensive than purchasing a new one; this is true whether for traditional cars or electric vehicles. This is not only because used cars are typically priced lower than new cars, but also because the terms of the lease may be more favorable. Additionally, when buying or leasing any used cars, you avoid additional costs associated with buying a new car, such as delivery fees, taxes, and registration fees. Due to these factors, the monthly payments for leasing a used electric car are lower than those for purchasing a new one. 

Leasing a used electric car makes it more affordable for those on a small budget. Because financing a used or new electric car requires you to absorb more of the vehicle’s costs and have a higher monthly payment than leasing a used vehicle. For example, older EV models with fast-outdated technology lose value quickly as newer cars are created with higher range and performance for the same price.

This is due to the fact that as new EVs are produced, technology improves considerably throughout the entire electric car market. But how can leasing assist you in combating this? When you lease an electric vehicle, you are left with a certain residue (the resale value the automaker estimates the car will be worth when the lease expires). If the car’s actual resale value is lower than anticipated when your lease term expires, the manufacturer will lose money, not you. This is a very likely occurrence during an EV’s model cycle as EV technology advances.

Leasing a used electric car gives you more flexibility

The benefit of leasing a used electric vehicle is that you can drive one without making a long-term commitment. This can be especially helpful for people who wish to test drive an electric car before making a purchase or who have concerns about the long-term viability of electric vehicles. With leasing, you can quickly switch out your electric car for a new lease or obtain a brand-new car with even greater technology, performance, and range when you need it. 

Additionally, leasing frequently has a mileage cap, so if you don’t drive much, it can be a great option for you. If you wish to keep your electric car at the end of your lease, the car dealer often offers you a buyout price at a predetermined residual price, which is frequently less than the actual depreciated worth of your electric vehicle at the time.

What should you look into when leasing a used electric car

Leasing a used electric vehicle comes with certain drawbacks as well. When leasing a used electric car, you typically must sign a contract that specifies a locked lease, which means that you can’t opt out of the ownership contract or that you have to pay the remaining balance on the lease plus a charge to get rid of the electric car. Additionally, you can frequently be constrained by other terms in the lease’s fine print, such as a vehicle’s restricted mileage or prohibited modifications.

The condition of the car is also one of the primary issues with which you should be diligent. Used electric vehicles could be less dependable and show more signs of wear and tear than new vehicles. In addition, used electric vehicles might not have the most recent features or technologies. Before making a decision, it is important to consider the warranty and the overall condition of the used electric vehicle.

Lastly, due to the high likelihood of returning and switching out a used electric vehicle for another one within a short period of time, most government incentives in Canada do not offer any sort of rebate or financial benefit when leasing a used electric car. The financial hardship is exacerbated further by the fact that when leasing an electric vehicle, the lease agreement often includes an interest rate, which requires you to pay for more than just your portion of the vehicle. Leasing also means that you can end up spending more on your several leases over a longer period of time than you would if you were to buy a car altogether and sell it after a few years of use.

Think of charging infrastructure

The accessibility of charging infrastructure in your location is another factor you should consider. Electric vehicles require charging stations to recharge. Owning an electric car can be more challenging if there aren’t enough charging stations in your neighborhood. In Canada, the infrastructure for charging vehicles is still being developed, so some locations might not have many charging stations. Before making a choice, it is crucial to determine whether there are charging stations nearby your house, available at your workplace, or at other locations you visit often.

In conclusion, depending on the individual’s personal circumstances, leasing a used electric car in Canada can be a smart option. When determining whether to lease a used electric car, consider the cost of the vehicle, the lease terms, and the availability of charging stations in your area. It can be a cost-effective way to own an electric car if you can get a good bargain on a used electric car and the lease conditions are fair. Furthermore, if charging stations are plentiful in your area, owning an electric car may be more convenient than owning a standard gas-powered automobile. Just keep in mind that examining the warranty and the condition of the used electric car is crucial before you make the final decision.

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.