If you’re looking to lease a car, you may be stuck on what kind of car that would be. Should it be an all-wheel drive SUV? An economy sedan? Or just maybe … you’re considering an electric vehicle. Let’s explore leasing by the numbers.
Pre-pandemic, I would compare car types for leasing by the following metrics: What was the least amount of money down, usually including first month’s payment, a bank fee and the title/tags? And I would look for a 1% monthly payment off the manufacturer’s suggested retail price (MSRP). Every now and then, you would be able to find a deal about $100 better than those you’d see filling the shul parking lots. (Remember the Infiniti G37x?)
Post-pandemic, these metrics need to be reevaluated. Anything near that 1% mark is about as good as it’s going to get—we’re talking about leasing a $50,000 car for $600 per month. So what should we consider?
My best advice for getting the best deal, similar to those pre-pandemic numbers, would be to go with an electric vehicle. Many of them offer a $7,500 tax break, and some even have incentives that bring the price down and have no taxes at all! These are huge numbers when dealing with leases.
Let’s break it down: Every $3,000 off a car is about $100 off your monthly payment. So the lower you go, the better your lease will look. Plus, you have to consider the long-term savings with gasoline prices; despite a cost incurred by adding an EV charger to your home, you’re offsetting it by adding an insane amount of value in mileage.
For example, the best deal I’ve seen so far is the Polestar. I was recently quoted a lease for one at $500 per month with a $64,000 MSRP. (See you at Mincha!)
If you’re not exactly ready for electric, perhaps you could consider leasing one of the many qualifying hybrid vehicles, such as the Jeep Grand Cherokee or Wrangler 4XE, which also get that great $7,500 rebate. Either way, your new lease will be much more affordable—your wallet will thank you.
Eric Samson is a car enthusiast and entrepreneur. He can be reached at [email protected].
