As a car buyer on a dealership lot, many questions go into your car buying experience. New or used? Full-size or mid-size? Financing, leasing, or paying in full? And more recently, gasoline or electricity? So many questions vary based entirely on the person shopping on the lot.
While all of these questions may seem overwhelming, they have been fairly typical considerations for car buyers for the past 20 or so years. Some years have been better for paying in full, while other years have shown huge drops in interest rates leaving financing a car as your best choice. Leasing a car, on the other hand, has always been seen as the black sheep of car buying.
While many aspects of a lease can be appealing, many would-be lessees are put off by the idea of mileage limits, and the hassle of possibly having to buy out your lease if you wanted a way out.
Volkswagen, however, is looking to change the way we view leasing while getting us hooked on EVs in the process.
Leasing Used EVs
With the launch of the ID line of vehicles, the top-selling automaker VW is starting to set itself apart from the pack even further by offering attractive electric vehicles with performance, range, and style.
With these EVs taking off in sales, VW has decided to take a different approach to used car sales. As used ID vehicles are traded into dealers, VW plans to offer lease plans on these used EVs, not only offering an affordable EV for consumers, but also keeping their battery packs in use, and in the hands of VW.
Keeping EVs On The Road
With current EVs on the road today, it is estimated that VW's current battery offerings would be able to last around 1000 charging cycles, as well as around 215,000 miles of use. More use than the typical gasoline-powered car. With this efficiency, it is estimated that VW would be able to go through two to three lease cycles on a single EV.
Not only does this keep green EVs on the road, but also offers affordable EVs for buyers who couldn’t typically afford one. With gas-powered cars and VW used lease options coming in at similar price points, buyers would be able to seriously consider electric cars, especially when they offer more miles in their lifetime than typical gas-powered engines.
It's A Greener Solution
As the world is turning to EVs for their environmentally friendly outward view on the public, some speculation has come into play regarding the long-term effects of EVs after the car’s life has come to an end.
While gas-powered cars can be reused with their individual parts removed, sold, and recycled after their life is over, Questions have arisen over the correct disposal of EV components after a battery is used up.
The VW used EV leasing program could offer a green way of disposing of vehicles as well, with VW planning to recycle leased EVs once the battery life begins to falter due to old age.
VW Keeping Their Batteries
In the new world of EV technology, early sales have shown that while gas-powered cars depreciate as a whole vehicle, EVs seem to hold their value due to the valuable components found in the battery.
This means that while the body of an EV may depreciate over time, that depreciation will be halted somewhat due to their internal battery’s value.
With VW reserving their used EVs for lease programs, VW will be able to hold on to their batteries, keeping the value of the battery once the vehicle has reached the end of its life, rather than being scrapped by the vehicle's owner.
While this perk is on the side of VW and not necessarily the consumer, it is another great business move that is bound to be copied in some way by other automakers and companies that aim to keep ownership of their batteries to keep their value after a car reaches the end of its life.
Will Leases Be The New Normal?
With these great new options for consumers, it is easy to imagine leasing a vehicle taking over as the new normal for driving a car home from a dealer, but it may take a while to take off.
Americans love new cars, and with typical incentives, financing a car still seems to be the most cost-effective way to bring home a car from a dealer lot. As EVs continue to take hold and technology improves, leasing a vehicle just might become the most cost-effective option for bringing home a car.
Only time will tell, but as VW unveils more vehicles in their ID lineup, it is hard to imagine passing on a used EV lease!