If you wish to help the environment with your mode of transport, you may decide to switch to zero-emission electric cars. However, as you ponder over the switch, a good question you need to answer is how you are going to pay for the car. There are two paths to owning an electric vehicle and you have to choose one; lease or buy.

What is the better choice for you between buying and leasing depends on your circumstances. However, the points below can help you make a decision.

How much do electric cars cost on the average?

There are many types of electric cars, just like ICEs. They are targeted at different categories of buyers and you will be able to find something suitable for you. For instance, you could go for luxury electric vehicles like the Porsche Taycan Turbo which costs above $150,000, or the Tesla Model S that starts at almost $90,000. If you need a more affordable electric vehicle, you could purchase the Mini Cooper, which goes for about $30,000.

What is the difference between buying and leasing an electric car?

If you have paid for a house before, the process is similar. When you buy an electric car, you will eventually own it after paying off for it. You can pay all at once or in installments. However, if you lease, you agree to pay a fixed amount monthly for as long as stipulated in the agreement. In effect, buying an electric EV denotes permanent ownership while leasing is temporary.

Should I buy or lease an electric car?

Here are some factors to help you decide:

What is your lifestyle?

If you are single or live alone, you might be able to get by without needing a car on a permanent basis. However, if you have a family, especially with children, you will probably need a car for the rest of your life. Think of school runs or family trips to the beach. It is important to have a car on standby permanently.

Some neighborhoods are designed to be car-dependent, which means you need a permanent car to get around.

However, some situations may make a permanent car inadvisable financially. For example, if you travel a lot for work, expect to move away for a job soon, or live in a city with a good public transport system and just need a car occasionally, leasing a car might be better for you.

What is your financial situation?

One of the biggest factors in car ownership is the financial situation of the buyer. If you have enough disposable income or have saved up enough, you might be able to pay outright for your electric vehicle or make the down payment without straining your finances. This way, you will be able to avoid making monthly payments for a long time.

However, if you are not able to put up the amount for the total cost of the car or the down payment, leasing is the better option. You can easily break a lease contract if you discover you can no longer afford it.

Your choice

Electric vehicles are exciting and each new model is tempting because they usually come with innovations. For example, Tesla has promised their future models will have vehicle-to-grid (V2G) features that will let you power your home with the battery of your car for example, or even sell power to the grid or share with other electric cars. Newer brands like Lucid will be releasing their Air models soon too, with a different ownership experience like a 500+ miles range.

However, if you are buying your electric vehicle, you may be unable to enjoy the latest features as you are stuck on your model until you upgrade. With leasing, you can easily switch to a new model as soon as it is released and enjoy all the new features.

Variety can also make you go for the leasing option. If you are a car enthusiast or like to try out different cars, having a permanent car may not be the best for you. Rather, you can lease from the many options available when you want.

If you are new to electric vehicles, you might want to test out different electric models before settling on one. Leasing works best in this scenario as the ownership is temporary.

Conclusion

It is important to consider your situation well before deciding whether to buy or lease an electric car. If you do not need a car on a permanent basis or your finances constrain you, leasing might be better for you. However, if you expect to need a car for a long time and you can afford the down payment or total cost, buying will work better for you.

Whichever path to zero-emission electric vehicle ownership you pick, you are doing the environment a huge favor by abandoning internal combustion engine cars.