[voxel]

I wondering about other people's thought processes on whether to lease or own/buy.

1. Battery technology is changing and I doubt I will be owning this car for 10 years.... maybe 5 max. My current car is 10 years old but I will be giving that to family so normally I'm not the type of want a new car every 3 years but the ID4 might be the exception.
2. Depreciation for non-Tesla EVs are terrible. I read the expected value of a EV after 3 years is 48% of the original price (Tesla Model 3 Bucks Trend of Electric Vehicles Depreciating Rapidly) and 26% after 5 years.
3. New EVs will reduce the demand for older ID4 models so in five years few might want a 2021 ID4. i.e does anybody want a 2016 Nissan Leaf?

On the flipside, lease residual values already factor in the massive drop in value so I might as well buy and then sell/trade the ID4 in after 2-5 years (who knows).

What do other people think?

 

[Spin]

I purchased it because I feel this car will hold its value better than some other EVs. If not, I just might keep it longer than I have been keeping vehicles lately. The free charging somewhat mitigates any drop in resale value.

 

[Huey52]

I did likewise with similar rationale. But I plan to keep it quite some time (I haven't historically but do intend this time ... 🤷‍♂️

The 8-year battery warranty positively tipped the scales for me.

I purchased it because I feel this car will hold its value better than some other EVs. If not, I just might keep it longer than I have been keeping vehicles lately. The free charging somewhat mitigates any drop in resale value.

 

[wtatun]

I purchased both. Never a fan of leases. Was pressured pretty good by the finance guy to convert my purchase to a lease on the second one (different dealer than the first) - but shut that down quick.

 

[Spin]

I purchased both. Never a fan of leases. Was pressured pretty good by the finance guy to convert my purchase to a lease on the second one (different dealer than the first) - but shut that down quick.

I don't remember the exact numbers for the lease I was offered, but I remember thinking they were not giving me the full value of the tax credit, or the $2000 NYS rebate.

 

[Huey52]

Yep, full Fed tax credit, plus State grant, plus my full asking trade, with no BS fees, yielded one heck of a purchase deal for me.

I don't remember the exact numbers for the lease I was offered, but I remember thinking they were not giving me the full value of the tax credit, or the $2000 NYS rebate.

 

[Tinman]

1. Battery technology is changing and I doubt I will be owning this car for 10 years.... maybe 5 max. My current car is 10 years old but I will be giving that to family so normally I'm not the type of want a new car every 3 years but the ID4 might be the exception.
2. Depreciation for non-Tesla EVs are terrible. I read the expected value of a EV after 3 years is 48% of the original price (Tesla Model 3 Bucks Trend of Electric Vehicles Depreciating Rapidly) and 26% after 5 years.
3. New EVs will reduce the demand for older ID4 models so in five years few might want a 2021 ID4. i.e does anybody want a 2016 Nissan Leaf?

On the flipside, lease residual values already factor in the massive drop in value so I might as well buy and then sell/trade the ID4 in after 2-5 years (who knows).

What do other people think?

I'm not a fan of leases. For my situation, there was no compelling reason to buy.

I leased ID.4 because of iterations of your points 1, 2, & 3. Plus, immediately receiving the full federal $7500 tax credit and free fast charging for the full term of the lease. The pandemic has greatly reduced my driving. I know I will not be paying for lease overmiles. I wanted to stop waiting for the 'next best' EV. I wanted to get the three-year clock started, but not at Tesla prices (or in a car that did not have a display in front of the driver). Another compelling thing about the lease is that everything about ID.4 seems tailored to the three-year time period of the lease: warranty, Car-Net, DCFC, etc. Also, I did a single-payment lease, which reduced the money factor to not zero, but near zero.

I believe that the EV landscape will be completely changed by March 2024 when my lease is up. Especially, with regard to charging curves and fast charging infrastructure. If it hasn't, or if VW underestimated residual, or a million other things, I can buy the car and still have an ID.4 for very close to the MSRP I knew I would have to pay when I walked into the dealer. If ID.4 turns into the 2016 Leaf, I can let VW have the car or desperately wave a fat carrot at me to buy it.

My dream is that I can finish off my ID.4 lease with a Great Circle trip around the USA with free charging, turn in ID.4, and drive off in a Buzzzz. It's OK to dream.

 

[603_ID4]

I am going to go against the grain here, I prefer to lease, since you can still purchase at the end of the lease (if you love the car), or if there have been huge changes to battery tech, range, and features, the it gives you the chance to get out of the vehicle without too much hassle. You just need to know your needs going in (i.e the miles per year you will drive). I always figure go for more miles then you need so you have them if you go over, and worst case if you have too many miles you can end up on the positive side if you decide to buy the car. Some dealerships will also give you credit for your vehicle since it ends up being worth more than what they determine it will be worth when you sign the lease.

The other reason I prefer to lease is I love cars and usually get bored with mine after a few years and want to try something new. Leasing is much more friendly if you like to bounce from car to car.

 

[artgpo]

Leased for the first time in 56 years of buying. The rational is that EV technology is rapidly changing so that three years from now who knows? Our lease is for 36 months/19,000 miles a year. In five years we would exceed the battery warranty. Older we get the less we wish to risk large auto repair expenditures. I do not think the ID.4 is going to hold its value all that well. Sales figures in the US are less than stellar.

 

[Froggy]

I put too many miles per year on my vehicle for a lease to work out.

 

[hilld]

I hate payments, if I can't pay cash for a car, I won't buy it. This also applies to leases. The 7.5k federal tax credit and the 25k sales tax exemption for WA state made this car very attractive for a purchase. I get why people lease and it is a good way to try a car for 3 years and if they decide they like it, purchase it or simply hand it back. Just be careful they don't nickel and dime you for cosmetic items or wear and tear at turn in. I have heard lots of stories about people returning leased cars only to have to buy a full set of tires at turn in, pay for scratches and dents, etc.

 

[artgpo]

VW is offering the $7,500 tax credit only offered to buyers not lessees as a Capital Cost Reduction. While a buyer may only get part of the $7,500 tax credit due to their individual tax situation lessees get the entire amount.

 

[hilld]

VW is offering the $7,500 tax credit only offered to buyers not lessees as a Capital Cost Reduction. While a buyer may only get part of the $7,500 tax credit due to their individual tax situation lessees get the entire amount.

I wish I was part of the 61% of Americans that don't pay federal income taxes, but unfortunately, that is not me. I will get the full credit.

 

[Tinman]

I wish I was part of the 61% of Americans that don't pay federal income taxes, but unfortunately, that is not me. I will get the full credit.

There are plenty of reasons to take the full credit up front that have nothing to do with whether or not a purchaser pays any income taxes, or even has a full $7500 federal income tax liability. There's a (very slight) chance that they retroactively means test the EV tax credit or cap the covered purchase price. Never say never.

I hate payments, if I can't pay cash for a car, I won't buy it. This also applies to leases.

I agree. That's why I did a single-payment lease in March 2021, while realizing the full federal tax credit almost a full year before 2021 federal filing season begins. In effect, you paid almost double my 2021 out-of-pocket cost plus $7500 (refunded later) @~$45k for the purchase and assumed the risk of the residual value at month 36. I assumed the risk of not being able to turn the vehicle back in without getting nickel and dimed at lease-end. If the car is worth more than VW's month 36 residual estimate, I can make a second large payment on the car and keep it or sell it at a "profit". It's a crap shoot; different strokes for different folks.

 

[agzand]

I leased but the residual value on iD4 lease is pretty low, therefore I think I might purchase it at some point. I will hold off until software update in September, if that resolves the minor issues with the car and the recent iD3 fire turns out to be unrelated to battery, I might purchase it from VW credit about 6 months into my lease.

 

[JimmyVW]

I leased but the residual value on iD4 lease is pretty low, therefore I think I might purchase it at some point. I will hold off until software update in September, if that resolves the minor issues with the car and the recent iD3 fire turns out to be unrelated to battery, I might purchase it from VW credit about 6 months into my lease.

Wait until V3.0 for the real changes in the firmware
(Around the end of the year)

 

[Tinman]

I might purchase it from VW credit about 6 months into my lease.

Out of curiosity, what would be the advantage to you of doing that?

 

[Islander]

I leased, and more controversial still, I did a one-pay lease. The value of my trade-in plus the tax credit paid the full cost of the three-year lease (I even got a small check back from the dealer). The lease gives some protection against a possible rapid drop in the value of the car, and that's worth something. There's also a sales tax savings in my state (WA) if you lease.

 

[Mutriu]

Lease only works for folks that like the new car smell every 3 years and don't drive a lot of miles. IMO doesn't make sense to buy the vehicle at the lease end because most likely you will overpay in the total amount compared to straight financing at a low APR. That's exactly what I did. Had I leased and then bought the vehicle at the lease end I was going to pay about 4000 dollars more. Got 2% financing and finished up the dilemma.

 

[agzand]

Out of curiosity, what would be the advantage to you of doing that?

The interest rate on lease is pretty high, 3.4% was the VW credit rate and these past few months many dealers have been marking it up to ridiculous rates (6.5% was the norm in the Bay Area). My rate is 4.4%. So if I purchase at 2% I will save about $50 a month.