Most people don’t know that there are thousands of electric cars on the road today, and while some electric vehicles are quite expensive, there are also electric cars that can be economical to both own and operate.
There are many reasons to lease an electric car on your next vacation, including the fact that AAA members receive up to 20% off the base rate when booking an electric vehicle.
Leasing an electric car often comes with several benefits, such as comprehensive warranty coverage, tax breaks, and flexible contracts. These are some of the best electric car rental deals. Leasing offers consumers the opportunity to drive brand brand-new vehicles without the high upfront costs of buying one outright.
In this article, we’ll go over all the most common things you need to know before leasing an electric car.
What is Leasing?
With a lease, you make a monthly payment to a leasing company to drive a new car for a set number of months (usually between 18 and 36) and for a set number of miles. The payment is essentially the amount the car is expected to depreciate over the lease period. You’ll usually make a down payment as well.
Understanding Leasing a Electric Vehicle (EV)
There are generally two types of electric car leases: the personal hire contract (PCH) and the business hire contract (BCH). The PCH is designed for individuals who want the convenience of fixed monthly payments without worrying about vehicle depreciation. On the other hand, the BCH is aimed at businesses looking to add electric vehicles to their fleet. It offers the same benefits as the PCH, but also includes potential tax advantages since lease payments can be deducted as a business expense.
Benefits of Leasing an Electric Vehicle (EV)
- Reduced running costs: Electric cars are noticeably cheaper to maintain. With gasoline prices on the rise, an electric vehicle offers considerable savings on fuel costs. Plus, electric cars have fewer moving parts than their gasoline counterparts, which can reduce maintenance costs.
- Environmentally friendly: Electric cars produce zero emissions, making them a cleaner, greener alternative to conventional vehicles. This helps contribute to the fight against climate change and reduces your personal carbon footprint.
- Always drive the latest model: With leasing, you can trade in your vehicle for the newest model every two years. This means you’ll always benefit from the latest technologies and performance improvements in electric cars.
Read Also: Costly Car Leasing Mistakes to Avoid in 2025
Things You Need to Know Before Leasing an Electric Car
Understand How Electric Cars Work
Electric cars have been around for years, but most people only have experience driving gas-powered cars. So before you lease your next electric vehicle, make sure you educate yourself on how they work.
After all, the way an electric car works is quite different from a gas-powered car. Since electricity powers the engine instead of fuel, acceleration is immediate and smooth, unlike the more gradual acceleration of a gas engine.
Another obvious, but important, difference between gas and electric cars is how they are powered. As you already know, gas cars are charged at the pump. However, electric cars require special electric charging stations. Charging stations can be easily found through your phone in many public places, such as parking lots and shopping malls, and some even offer free charging. But, in most places, they are not as widespread as gas pumps. That’s why it’s important to know where electric charging stations are located along the route you want to take.
Consider the Range of Electric Cars Carefully
It’s important to consider the range of an electric car before you head out on your next road trip vacation. Different models have different ranges, and it’s critical to choose one that suits your needs. If you’re going on a long road trip, you should consider renting an electric car with a longer range. Some models even come with features that increase the range of your vehicle. Most electric cars can go up to 300 miles on a full charge.
Make Sure You’re Insured
Car insurance isn’t just for car owners. When it comes to leasing an electric car, one important factor that is often overlooked is insurance.
It’s essential to make sure you have the right insurance coverage for your rental. Not only will this help protect your finances if something happens while you’re driving the car, but it will also provide you with peace of mind and the assurance that you’re adequately covered. Talk to your AAA travel agent and make sure you have the right coverage for your electric car.
It’s also not a bad idea to double-check the rental company’s policy to make sure it provides enough protection for both you and your vehicle in the event of an accident.
Avoid Battery/Warranty Issues
Most EV leasing contracts are written for two to three years. During that time, you’re unlikely to have any issues that aren’t covered by the automaker’s new-vehicle warranty. The longer you have a vehicle, such as when you own it, the greater the chance that you’ll be responsible for an out-of-warranty repair bill.
Expect a New Experience
Perhaps the most important tip for leasing an electric car: expect your experience with the vehicle to be different. Most people aren’t used to electric vehicles and all the nuances that come with them. Expect the driving experience and really everything else to be different than a gas-powered car. Knowing that there will be a learning curve will make everything much easier overall. Electric cars aren’t difficult to drive, but it can take some getting used to.
Know the safety features
Before renting an electric car, keep in mind that they often come equipped with safety features that differ from those of gas-powered vehicles. Electric cars often have advanced driver assistance systems (ADAS), including automatic braking, collision warnings, and lane departure warning that can be more advanced than those in a traditional gas-powered vehicle. Since many electric vehicle models have driver assistance features, understand how all the safety features work before renting an electric car.
Tips for Renting an Electric Car
Electric vehicles are becoming increasingly popular due to their lower running costs, environmental benefits, and convenience. But, when it comes to renting an EV, there are a few key considerations you should keep in mind.
- Check the charging infrastructure of the area you plan to visit. Most EVs come with a charging cable and plug for use at home, but you may need additional wiring if you plan to use public charging stations. Be sure to research the availability of charging points at your destination so you’re not left with an empty battery!
- Consider the economic benefits of renting an electric car. Keep in mind that the cost of charging your EV can also be cheaper than with a gas or diesel vehicle, so this could help lower your overall rental costs.
Don’t forget about insurance! Many rental companies offer special insurance packages for EVs, but be sure to read the fine print carefully before signing up. It’s also important to know the restrictions.
You can save every day by taking advantage of AAA’s deals on lease cars. Find deals near you through Hertz as a AAA member today!
Read Also: Can You Lease an EV With Bad Credit?
Tax Credit for Leasing an EV
Electric vehicles are eligible for a federal tax credit of up to $7,500, but when it comes to purchases, both the car and the buyer are subject to numerous conditions: the vehicle must be manufactured in North America, the battery components and minerals must meet specific sourcing requirements, it must be priced below a certain threshold, and the buyer’s income must not exceed a certain amount.
Leasing an electric car also comes with an additional tax advantage: Your income does not affect your eligibility for the tax break. Unlike purchasing, where taxpayers must meet specific income criteria, leasing allows you to bypass these traditional limits. When considering your options for purchasing an electric vehicle, leasing emerges as an attractive option with financial benefits worth exploring.
Should You Buy or Lease an Electric Car?
Since leasing is popular with electric cars, there is a constant supply of two- and three-year-old models hitting the used car market. While some models are in high demand and sell for premium prices, others are surprisingly affordable. Even with a reduced degree of battery capacity and range, an inexpensive used EV can be a fantastic commuter vehicle with minimal operating costs. Some used EVs may even qualify for state or federal tax incentives.
When purchasing a used EV, you should follow the same basic principles of buying used vehicles as you would with any other used vehicle. That means getting a vehicle history report, obtaining appropriate used vehicle financing, and negotiate with dealer for a fair price.
