Are EV Companies Finally Waking up to the Benefits of Leasing?

Are EV companies finally waking up to the benefits of leasing?
Are EV companies finally waking up to the benefits of leasing?

Over the last few days it has been doom and gloom with regards to electric car market, with the exception of Tesla Motors announcement of an affordable electric vehicle within four years, but thankfully today there is some good news. Honda, it seems, is determined to push the Honda Fit EV with the announcement of a relatively cheap leasing deal over a three-year period.

While the likes of Tesla have attempted tackle the issue of electric vehicle sales and there take up with the general public, with a $500 per month lease deal for the Tesla model S at just $259 per month, the Honda Fit EV is certainly causing ripples across the industry. So what do you get for your money? Why is Honda undercutting competitors? Is this the start of the big surge towards mass market?

Leasing the Honda Fit EV

The vehicle is available for $259 per month over a three-year period but amazingly there is no down payment required, there are unlimited miles, and Honda has even thrown in insurance cover. The vehicle has been on the market for a short while and received some very favourable comment from electric vehicle enthusiasts and there is no doubt that this new leasing arrangement will certainly increase its attractions.

Quote from ElectricForum.com : "Even though French giant Renault is one of the most successful electric car manufacturers in Europe the company is still disappointed at sales so far. Will a new marketing strategy be enough? Are the public ready for the hard sell?"

Honda joins a long line of EV companies

While the Honda Fit EV deal has been well received it is worth noting that not only Tesla, but also the likes of Chevrolet and Fiat, have joined the electric vehicle leasing charge. Some time ago we published an article which suggested that leasing may well be the way to the hearts and minds of general motorists and thankfully some of the major companies in the industry have taken these sentiments on board.

If you question anybody who was test driven an electric vehicle you will likely receive some very positive feedback but for some reason this feedback and this generally positive feel for the industry has not set the market alight.

Is leasing as cheap as it looks?

There's no doubt that there are some financial downsides to leasing a vehicle, the largest being the fact you will not own the vehicle, but the reality is that many people are happy to spend a relatively small outlay on a new EV. There are also various options to acquire the vehicle at the end of the leasing period, there are get out clauses for motorists and indeed the reality is that in some cases there is limited profitability and perhaps even capital losses for electric vehicle manufacturers in the short term. Thankfully, they are now looking at the bigger picture and the long-term game.

Conclusion

Slowly but surely, the general consensus in the electric vehicle market seems to be moving towards leasing in the short term as a means of promoting electric vehicles and what they have to offer. This is the perfect opportunity for electric vehicle manufacturers around the world to grab the attention of motorists, for a relatively small monthly outlay, and showcase their new electric vehicle technology.

So far the uptake of the Honda Fit EV has been relatively slow but there is no doubt that this new leasing arrangement will help in the short to medium term.