So, I’m in the market for EV/PHEV. Personally, I don’t care about the electrification but I do need the carpool sticker in CA, so there you have it. I’ve been looking at multiple cars and except for Audi, I do see a lot of brands not passing along the federal EV credit (Kia, BMW, Volvo etc).
So now I’m debating if I were to proceed with any of these cars, does it make more sense to buy it vs lease it. Personally, I’d prefer leasing as to not take a risk with the residuals down the road as the technologies are rapidly evolving but still.
Assumptions include taking the residual set by the bank and subtracting another $2500 from that as the trade-in value 36 months down the road. For purchase, Im assuming a 1.8% finance rate for 36months.
Ownership TCO: $28K
Lease TCO: $33k
Both calculations are done with 10.5% tax rate and 15K miles. I assume people who qualify for state incentives would be getting even a better deal with purchase vs lease.
Here is a similar comparison for BMW i4 M40.
Ownership TCO: $33.4K
Lease TCO: $39.7k
Trying to understand am I missing something? Does it actually make more sense to purchase these vehicles vs lease them?
As a side note, I’ve driven the Audi E-Tron, Audi Q5e, BMW i4, BMW X5e, Ford Mustang Mach-E, Volvo XC-60, Kia EV6, Polestar 2 and Lincoln Corsair PHEV. Hard to get hold of Hyundai Ioniq , Tuscon PHEV or Sorento PHEV for a test drive as inventory is really tight.
Edit: Volvo has lower MF’s than lease, so the delta isn’t as big. On the other hand, even thu Audi passes the EV credit, their MFs for current programs look pretty high (as per Edmunds)