EV Guide: Everything To Know About Leasing An Electric Car

Leasing an electric car is often cited as an excellent way to try a brand-new EV. If you're interested in a brand-new IONIQ 5, IONIQ 6, Kona EV, or any other model that utilizes a motor-and-battery configuration, leasing is often your best method for trying out the EV lifestyle without committing to it full-time. But what's the experience of leasing an EV, and why might it be the preferred option over financing? At McGee Hyundai of Barre, we'll use our IONIQ 5, IONIQ 6, and Kona EV models as examples of why you may want to consider leasing an electric vehicle.

Is Leasing an EV a Good Idea? Summarized

  • Leasing is a low-commitment option for upgrading to a new vehicle, allowing you to test a model before deciding to return it or purchase it.
  • By leasing an EV, you get to enjoy it before it begins to depreciate, benefit from cutting-edge technology, and learn if you like the EV lifestyle before committing long-term.
  • Lease contracts often benefit from federal and local EV incentives through direct discounts on monthly payments.
  • Keep in mind that leasing an EV can include mileage limits and home charging installation that may not be useful if you decide against EVs.
  • Hyundai models, like the IONIQ 5 and Kona EV, are excellent options to lease and may come with low monthly payments.

How Does Leasing an EV Work?

To begin, let's go over how leasing an EV differs from the standard financing route. Where financing a car eventually leads to ownership and a title, a lease is a temporary contract – typically between two and four years – where you are then expected to either return the EV, purchase it, or lease a new model.

During the contract's term, your EV will have set mileage limits and quality expectations (as discussed with your dealership at the time of signing). You are then free to drive it until the end of your lease, taking it to work, on road trips, and everything in between.

Financial Benefits of Leasing an EV

While leasing an electric SUV or sedan may seem more limited than financing on the surface, there are plenty of savings that await. For example, your up-front costs are almost universally lower through a financing deal. You will usually pay less for the down payment and monthly expenses.

In addition, a lease allows you to enjoy an EV's maximum value and then return it if its market value has declined significantly – or purchase it if it retains its resale price. If that wasn't enough, because you drive the EV while it's well within the Hyundai New Vehicle Limited Warranty (of five years or 60,000 miles, whichever comes first)1 and the Hyundai EV Battery Warranty (of 10 years or 100,000 miles, whichever comes first),2 you'll likely incur minimal repair and maintenance costs.

Are You Better off Financing or Leasing an Electric Car?

Financing an EV has plenty of advantages, too. For instance, you'll have more reasons to invest in electric infrastructure (such as one of our Level 2 Charging Stations) that'll make refilling overnight a breeze. You'll also be the recipient of the EV's title once your payments are through, giving you more flexibility to keep it, give it as a gift, or sell it. Our used EV inventory is a great place to go if you want to purchase an electric model without worrying about depreciation.

Leasing a brand-new EV model is often an excellent choice for new EV owners, those interested in the features provided by models like the IONIQ 6, or drivers who plan on making major life changes in the next few years and may need a bigger or smaller vehicle at that point.

Pros and Cons of Leasing an Electric Vehicle

Pros

  • Temporary ownership lets you try features and the EV lifestyle
  • Lower monthly expenses
  • Less need for major repairs
  • Flexible end-of-lease options

Cons

  • Higher upfront costs and monthly installments
  • Less incentive to purchase an at-home Level 2 charging station
  • Mileage limits and wear fees may seem restrictive

Should You Consider Financing or Leasing: An Electric SUV and Sedan Overview

Say you want to lease the Hyundai crossover EV, the IONIQ 5. A cargo capacity of 58.5 cubic feet awaits, along with a passenger volume of 106.5 cubic feet. Road trips and errands inside the EV are supported by a quick charging time – from 10%-80% as low as 20 minutes with a Level 3 DC Fast Charging station, or a full charge in up to seven hours and 20 minutes of Level 2 charging.3 By choosing to lease, you can utilize this crossover's maneuverable size while your family is growing, and then consider purchasing it outright if it serves you well – or upgrade to a larger SUV if your family's needs change in a few years.

Or, maybe you're looking into leasing a Hyundai electric car, such as the IONIQ 6. This breakthrough electric sedan offers up to 342 miles of range,4 a responsive motor that produces over 300 horsepower, and available features like the Remote Smart Parking Assist 2. Leasing this sedan, you'll learn the ins and outs of electric driving, like where to find a DC Fast Charging Station or how smooth the acceleration is, before you commit to full ownership. Then, if you like the feel, you can invest in a charging station for your home and see how charging overnight can save you time – and money – compared to gas-only vehicles.

Get an EV Lease at McGee Hyundai of Barre

A caring team, a variety of EV options, and proven skill with Hyundai maintenance and repairs: These are just some of the reasons to come to our licensed Hyundai dealership in Central Vermont. We want to ensure that your EV-owning journey is smooth and enjoyable, whether this is your first time stepping into the EV world or you're a charging pro.

Whenever you're ready to talk about any of our lease offerings – or want to see if any of our financing plans fit your budget – our staff is here to help. We'll explore your options together and introduce you to our value-driven Hyundai EVs at your leisure.

Charging Availability of EVs: No Home Charging Necessary

If you decide against getting an at-home charger installed for your EV, you may wonder how your vehicle will stay powered up for the road ahead. Thankfully, it is fairly easy to keep your Hyundai electric car or SUV at full charge with our grid of public Level 2 and Level 3 charging stations in Central Vermont.

Alongside an available Level 1 mobile charger, you can find faster charging rates at stations near our locale, such as on Barr Hill or along East Montpelier Village Park and Ride, as well as the following locations:

Join a community of EV owners that compile information to improve your leasing or ownership experience, like our guide on charging the Hyundai IONIQ 5.

Frequently Asked Questions About Leasing an Electric Car

Do lease mileage limits work the same when leasing an EV?

Yes, EVs have similar leased mileage limits to gas-only cars. Depending on your model, this can be as low as 7,500 miles for low-mileage deals or upward of 15,000 for specific, high-mileage offerings (with standard deals being between 10,000 and 12,000 miles annually). Exceeding this limit incurs a minor fee of a few cents per mile, which can quickly add up.

Does an EV lease include a home charger, and what happens to it when the lease ends?

A home charger may come with your leased car, though that is not a standard inclusion with all EVs. Check with your dealership about whether your lease contract will include a Level 1 or Level 2 charging cable. If it comes with a cable, you will likely need to return it at the end of your lease, unless you decide to purchase the EV at the end of your deal.

How do federal and state incentives affect EV lease payments?

Federal and state incentives may affect EV lease payments by reducing the amount you owe monthly.5 However, unlike with financing, the rebate goes to the leasing company or dealership first. It is then passed down to the lessee, typically through a lower down payment or a lower monthly cost – though this is not required. Before you sign your lease, ask your dealer about these potential savings.

What should I know about battery life and range when leasing an EV?

Since you'll only be driving your EV for an average of three years on a lease, you likely won't need to worry about battery life or range degradation. These batteries are well within many brands' EV warranty durations; for example, the Hyundai 10-year/100,000-mile EV battery coverage will be more than enough to keep your lease secure throughout its lifespan.2

1Warranties listed on this web page shall not be solely relied upon. Warranties may be subject to specific terms, restrictions, exclusions, and fees. Additional warranty information may be obtained by visiting the official website of the warranty provider. Contact our dealership for complete details.

2The Hybrid/Electric Limited Battery Warranty covers defects in the factory workmanship or materials of the vehicle's lithium ion battery for 10 years from the date of original retail delivery or date of first use, or 100,000 miles, whichever occurs first. Coverage does not apply to lease and commercial vehicles or vehicles serviced or registered outside the U.S. See your Hyundai dealer and your Owner's Handbook for complete warranty details and limitations.

3Actual charging time varies based on a number of factors, including current battery charge level, output of the charging unit, vehicle and battery settings, battery temperature and outside temperature. Ultra-fast charging stations are provided by independent companies and availability is not guaranteed.

4All figures are EPA estimates and based on a fully charged battery. For comparison purposes only. Battery capacity decreases with time and use. Actual range will vary based on a number of factors, including vehicle options, driving conditions and habits, vehicle and battery's condition, battery temperature and outside temperature.

5At the time of writing. Incentives are subject to change without notice and are intended for informational purposes only. Please note that this is not tax advice. Consult with your tax adviser for further details and to determine eligibility.