Interested in Hybrid and Electrical Mechanic Training? Learn Why So Many Consumers Are Leasing EVs
Leasing a vehicle refers to a customer driving it from a dealership for a contractually agreed amount of time and paying for its usage monthly instead of purchasing it immediately. Once the lease period is over, there is the option to renew and receive a new vehicle or purchase the vehicle from the dealer. Leasing also has several other benefits and is an effective way to get an EV or hybrid while mitigating some of the less favourable aspects of purchasing an EV or hybrid directly. As someone in hybrid and electrical mechanic training, you’ll better understand some of these positives surrounding leasing.
If you are in hybrid and electrical mechanic training and want to better understand the factors that lead customers to lease EVs over buying them, continue reading below!
Understanding EV Tech Advancements as a Hybrid and Electric Vehicle Mechanic
EVs are continually receiving technological upgrades that make past models seem inferior. As someone in hybrid and electrical mechanic training, you’ll understand how quickly technological developments have occurred in the EV and hybrid industry. Vehicles now have longer ranges, more powerful electric motors, and improved Advanced Driver Assistance Systems (ADAS). Therefore, once the leasing period is over for a vehicle, the person leasing can choose to renew the lease but receive a newer vehicle with all the improved technology for a similar price. Consequently, they get all the added benefits and upgrades that come with a new EV every time their lease is renewed.
How Clients Benefit From Purchasing After Their Lease
Used vehicles in the current auto market maintain their value better than in the past due to material shortages and delays for new vehicles. As such, when leasing an EV, at the end of the term, there is the option to purchase the vehicle and resell it for a higher price than it was purchased. This provides a quick turnaround in profit, and it is possible to go and lease another EV and repeat the process. However, the used car market is expected to see dips in car values as wait times on new vehicles are lower and raw materials are more readily available again.
Tax Credits May Help the Customer Save Money
With the push to get more and more EVs and hybrids on the roads in Canada, tax incentives which benefit owners and people leasing EVs and hybrids have been introduced. Sometimes, dealers pass these tax incentives to customers through lower price tags or cash incentives. This is more beneficial than buying an EV or hybrid brand new because the customer gets to save immediately from the onset of their lease. In comparison, if the EV or hybrid is bought brand new, the owner would only receive tax credits when filing their tax returns.
Another Advantage of Leasing EVs
As a prospective hybrid and electric vehicle mechanic, your training will cover EV batteries and teach you how to service, repair, and replace them. The reason for this is that these batteries do suffer a certain degree of degradation over their lifetimes.
Battery degradation means the battery won’t charge to maximum capacity due to dead battery cells. The EV or hybrid will indicate 100% charge, but the range will be shortened as it is only 100% of what the battery can charge. For EV and hybrid owners, this could be a problem after several years and will often require a battery replacement to achieve maximum range capability again. An individual leasing an EV or hybrid doesn’t have to deal with this problem, though, as once the lease for the vehicle is over, they return it to the dealer irrespective if the battery has lost some capabilities.
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