Yes, you can negotiate the terms of an electric vehicle (EV) lease much like you would with a traditional internal combustion engine (ICE) vehicle lease. This negotiation can include the lease price, the buyout value at the end of the lease, and how incentives like the federal tax credit are applied.
Key Points on Negotiating an EV Lease
- Lease Price Negotiation: You can negotiate the lease price for an EV just as you would for a conventional vehicle. Dealers may not be obligated to honor advertised lease deals, so negotiation can help you secure better terms. This includes negotiating the upfront cost, monthly payments, and other fees embedded in the lease terms.
- Inclusion of Tax Credits: Dealers decide whether and how to apply the federal EV tax credit to the lease. Some dealerships might inflate the vehicle’s MSRP or add dealer fees that effectively reduce the value of the tax credit benefit. Thus, it’s important to ask explicitly whether the tax credit is included in the lease deal and verify it in your contract paperwork.
- Buyout Value Negotiation: If you plan to purchase the EV after the lease term, you can negotiate the buyout price during the lease agreement or toward the end of the lease period.
- Watch for Markups: There can be dealer markups on the MSRP, sometimes significant (e.g., 14% on some models), that undermine advertised discounts or tax credits. Reviewing and questioning each line item on the lease paperwork ensures you do not pay inflated costs disguised as fees or other charges.
- Dealership Competition: Because dealers compete with one another, they often offer discounts or better lease terms to attract customers, giving you leverage to negotiate.
Recommendations
- Ask the dealer whether the EV tax credit is factored into the lease price.
- Demand transparency on the sales price, fees, and how incentives are applied.
- Negotiate the buyout price if you want the option to purchase the EV at lease end.
- Compare offers from multiple dealers to leverage competition for better terms.
- Focus beyond just monthly payments; inspect the full contract to avoid hidden costs.
In summary, EV leases are negotiable in various aspects including price, incentives application, and buyout options. Being informed and thorough during negotiation can help maximize your savings and get you a more favorable lease agreement.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-negotiate-the-terms-of-an-ev-lease/
