Electric Car Leasing vs. Buying: What’s the Best Option?

Electric Car Leasing vs. Buying: What’s the Best Option?

Growing environmental consciousness, rising fuel prices, and active government promotion through incentives and infrastructure development are all contributing factors to the significant uptake of electric vehicles (EVs) in India. Improved range and charging times are being brought about by technological developments, and EV adoption in India is anticipated to increase due to rising affordability and a developing charging network.

Individuals can acquire these vehicles through either purchase or lease.

The purpose of the blog post is to tell people why EV leasing can be a better option than buying one.

Lower Initial Financial Outlay

Reduced down payment: The main benefit of EV leasing is the lower upfront expenditure. The initial payment for leasing is usually less that purchasing and consists of only the first month's rent, a security deposit, and a few other costs. This stands in stark contrast to the sizeable down payment needed to buy an EV, which can be a major deterrent for many.

Decreased starting costs: Compared to the complete ownership transfer required for a purchase, associated costs such as registration fees and certain taxes may be lower with a lease.

Availability of Newer Technology and Regular Updates

Rapid Technological Advancements in EVs: As software, features, and battery technology (longer range, faster charging) continue to advance, the EV market is changing quickly. By allowing drivers to drive a new EV every two to three years, leasing ensures that they always have access to the newest advancements without having to deal with the inconvenience and potential financial loss of selling an older EV that may have lost value due to technological obsolescence.

Keeping Up with Battery Issues: Battery technology is still developing. Since the leasing company bears the majority of the liability for battery deterioration and possible replacement expenses during the lease term, leasing allows drivers to reduce these long-term risks.

Reduced and More Accurate Monthly Expenses

Emphasis on depreciation: Rather than the full purchase price, monthly lease payments are mostly determined by the anticipated depreciation of the vehicle over the lease term. When compared to loan instalments for a comparable EV, this frequently leads to lower monthly payments.

Possibility of included maintenance: Although not all lease agreements do, some may cover routine maintenance and possibly lower unforeseen repair expenses. Monthly car expenses may become more predictable as a result.

Decreased Ownership Risk and Hassle

No resale issues: As long as you've followed the terms of the lease, drivers can easily return the car at the end of the lease period. The difficulties and possible financial loss involved in selling a used EV, such as haggling over prices and interacting with possible buyers, are not their concerns.

Depreciation risk assumed by the leasing company: To protect drivers from this possible monetary loss, the leasing company assumes the risk of the vehicle's gradual depreciation.

No long-term commitment: Electric vehicle leasing gives drivers flexibility if their needs change or if they want to move to a different EV model or even a different kind of car in a few years.

Possible Tax Advantages for Companies

Lease payments for cars used for work can frequently be regarded as operating expenses for Indian businesses, which may result in tax deductions. Due to this, leasing can become a more financially appealing choice for businesses and independent contractors.

Simpler Budgeting

Budgeting for transport costs may be made simpler by the monthly lease payments' predictability, particularly if maintenance is included.

All of these reasons have prompted many people to opt for EV car leasing.

To facilitate businesses' transition to electric mobility, Gentari offers Vehicle-as-a-Service (VaaS), a comprehensive solution that integrates long-term EV leasing from reputable brands with services like maintenance and mobile charging. Flexible EV subscription models and fleet management support ensure a cost-effective shift to electric vehicles with minimal initial investment. Having already deployed over 3,000 EVs, Gentari focuses on optimising fleet operations, helping businesses reduce their carbon footprint and advance the widespread adoption of cleaner transportation.

Conclusion

In conclusion, leasing an EV inIndia presents compelling advantages through lower initial costs, access to evolving technology, predictable monthly expenses, reduced ownership burdens, and possible tax benefits for businesses. This makes it a particularly attractive option for those prioritising flexibility, affordability in the short term, and staying current with the rapid advancements in the electric vehicle market. Due to these reasons, people are encouraged to lease electric vehicles.

Gentari’s Vehicle-as-a-Service (VaaS) is a comprehensive solution that combines long-term EV leasing from reliable brands with services like maintenance and mobile charging to help businesses make the transition to electric mobility. A low initial investment and a cost-effective transition to electric vehicles are guaranteed by flexible EV subscription plans and fleet management assistance. With more than 3,000 EVs already in service, Gentari is committed to fleet operations optimisation, assisting companies in lowering their carbon footprints, and promoting the broad use of cleaner transportation.