Leasing Becomes Preferred Way for Americans to Buy New Electric Vehicles

TapTechNews August 27th news, according to the data of S&P Global Mobility and TransUnion, in the second quarter of this year, leasing has become the preferred way for Americans to buy new electric vehicles.

TapTechNews first explains that the leasing mentioned above refers to the 'direct leasing model (leasing to purchase)', which means that the financial leasing company signs a vehicle purchase contract with the supplier according to the vehicle selected by the lessee, and then the lessee signs a financial leasing contract with the financial leasing company and pays the rent on a regular basis. In this model, the ownership of the vehicle license plate is under the name of the financial leasing company. Through the direct lease model, consumers can drive a better car by paying less money, and at the same time, they don't have to consider the disposal problem of used cars after the expiration of the contract, and they can choose to return the car or rent a new vehicle, which is more flexible than auto loans. However, in the United States, the direct lease model also has some limitations, such as a certain mileage limit per year, not being able to be modified, and there will be additional depreciation costs in case of an accident, etc.

While in the same period last year, loans were the main way for American consumers to buy new electric vehicles, accounting for 44.6%. Now the leasing proportion has risen to 48.7%, while the loan has dropped to 34.7%, and cash only accounts for 16.6%.

In the case of German luxury electric vehicles, almost all vehicles are leased. A report from J.D. Power last month showed that among customers buying a new Mercedes-Benz, BMW, or Audi electric vehicle, about 9 out of every 10 choose to lease rather than buy directly.