I have been a fan of electric vehicles for a while. While you shouldn’t ditch your new ICE car to get one, I have a 17-year-old Accord that announces itself loudly when going in reverse.
I have heard that EV cars aren’t selling, that you should buy a used one, and that many people are leasing them. So, let’s look at a few entry-level options and how they compare new vs. leased vs. used.
The Excluded
These may still be great buying opportunities. For example, after rebates, a new Chevy Equinox can be had for $28K, or, if you want to wait until 2025, a 2023 Subaru Solterra can be purchased for $20K.
Although the Chevy Blazer EV, Chevy Equinox EV, and Honda Prologue are eligible for $7,500 in tax rebate incentives, they are too new for me to look at used car history.
The MINI Countryman is brand new, has limited supply, and has been eliminated.
I also removed the following six vehicles since they don’t have a 2022 model version: Nissan ARIYA, Subaru Solterra, Toyota bZ4X, Hyundai IONIQ 6, Lexus RZ, Genesis GV60.
Finally, The Audi Q4 e-tron and MINI Hardtop did not have lease offers available, so they were omitted.
The Competitors
Here, we see each car’s MSRP and then the cheapest price for 2023 and 2022 models via cars.com. I excluded cars in accidents, fleet vehicles, multiple owners, and cars with EV credits rolled into the price.
| Make | Model | MSRP | 2023 | 2022 |
| Nissan | LEAF | $28,140 | $12,999 | $14,997* |
| Hyundai | Kona Electric | $32,875 | $19,000 | $21,000* |
| Kia | Niro EV | $39,600 | $22,995 | $21,495* |
| Volkswagen | ID.4 | $39,735 | $22,200 | $24,595 |
| Ford | Mustang Mach-E | $39,995 | $27,262 | $25,273 |
| Hyundai | IONIQ 5 | $41,800 | $28,990 | $24,995 |
| Tesla | Model 3 | $42,490 | $26,000 | $24,500 |
| Kia | EV6 | $42,600 | $27,827 | $26,571 |
| Tesla | Model Y | $44,990 | $31,521 | $31,000 |
| Volvo | XC40 Recharge | $52,450 | $33,500 | $27,490 |
| Mercedes-Benz | EQB | $53,050 | $30,999 | $29,332 |
| Volvo | C40 Recharge | $53,600 | $27,278 | $27,531 |
| BMW | i4 | $57,900 | $36,990 | $35,500 |
New EV Tax Rebate
Only four of the competitors qualify for an EV Tax Credit
| Car | New MSRP | EV Tax Credit | New Price |
| Volkswagen ID.4 | $39,735 | $7,500 | $32,235 |
| Tesla Model 3 | $42,490 | $7,500 | $34,990 |
| Tesla Model Y | $44,990 | $7,500 | $37,490 |
| Nissan LEAF | $28,140 | $3,750 | $24,390 |
The LEAF is by far the cheapest car, but there is a reason for that: it has the worst range.
Range
| Car | New MSRP | Range | $/Rng |
| Tesla Model 3 | $42,490 | 272 | $156 |
| Kia Niro EV | $39,600 | 253 | $157 |
| Ford Mustang Mach-E | $39,995 | 250 | $160 |
| Hyundai Kona Electric | $32,875 | 200 | $164 |
| Tesla Model Y | $44,990 | 260 | $173 |
| Kia EV6 | $42,600 | 232 | $184 |
| Nissan LEAF | $28,140 | 149 | $189 |
| Hyundai IONIQ 5 | $41,800 | 220 | $190 |
| Volkswagen ID.4 | $39,735 | 206 | $193 |
| Volvo XC40 Recharge | $52,450 | 257 | $204 |
| Volvo C40 Recharge | $53,600 | 257 | $209 |
| BMW i4 | $57,900 | 266 | $218 |
| Mercedes-Benz EQB | $53,050 | 220 | $241 |
This is a crude way to represent range and price, but I wanted to understand how close these vehicles are in range.
Depreciation
If you want a new EV, you must understand how quickly they lose value. You can get a 2023 model of all these vehicles with less than 10,000 miles and excellent condition for an average of 39% less than their MSRP. 2022s are only 41% less.
| Car | New MSRP | 2023 Diff | 2022 Diff |
| Nissan LEAF | $28,140 | 53.81% | 46.71% |
| Hyundai Kona Electric | $32,875 | 42.21% | 36.12% |
| Kia Niro EV | $39,600 | 41.93% | 45.72% |
| Volkswagen ID.4 | $39,735 | 44.13% | 38.10% |
| Ford Mustang Mach-E | $39,995 | 31.84% | 36.81% |
| Hyundai IONIQ 5 | $41,800 | 30.65% | 40.20% |
| Tesla Model 3 | $42,490 | 38.81% | 42.34% |
| Kia EV6 | $42,600 | 34.68% | 37.63% |
| Tesla Model Y | $44,990 | 29.94% | 31.10% |
| Volvo XC40 Recharge | $52,450 | 36.13% | 47.59% |
| Mercedes-Benz EQB | $53,050 | 41.57% | 44.71% |
| Volvo C40 Recharge | $53,600 | 49.11% | 48.64% |
| BMW i4 | $57,900 | 36.11% | 38.69% |
You will even see some of these 2022 models have improved with depreciation, and that is due to the $4,000 rebate available. If you buy a used EV for less than $25,000 whose model year is at least two years older than the current year, you may be eligible to save $4,000 due to the Used Clean Vehicle Credit.
Any 2022 used EV listed for $25K can be only $21K. Volvos are dangerously close to this threshold. You may be lucky enough to soon get one for $21K, 60% off MSRP.
Lease Offers
The sheet below compares the October 2024 lease offers versus the two-year deprecation of car buying (via cars.com 2023 used prices).
We see that leasing a Tesla Model 3 for two years would save you over $7K, while renting a Mustang Mach-e is a terrible financial decision.
| Make | Model | Months | $/Mo. | Down | 2 Yr $ | 2 Yr Buy | L v Buy |
| Tesla | Model 3 | 36 | $299 | $2,999 | $9,175 | $16,490 | $7,315 |
| Nissan | LEAF | 36 | $249 | $2,649 | $7,742 | $13,496 | $5,754 |
| Volvo | C40R | 36 | $459 | $3,949 | $13,649 | $18,121 | $4,472 |
| VW | ID.4 | 36 | $299 | $3,499 | $9,509 | $11,774 | $2,265 |
| Volvo | XC40R | 36 | $559 | $4,005 | $16,086 | $18,183 | $2,097 |
| Mercedes | EQB | 36 | $439 | $5,013 | $13,878 | $15,499 | $1,621 |
| Tesla | Model Y | 36 | $439 | $2,999 | $12,535 | $13,469 | $934 |
| Kia | Niro EV | 24 | $149 | $3,999 | $7,575 | $5,720 | -$1,855 |
| BMW | i4 | 36 | $449 | $4,869 | $14,022 | $11,905 | -$2,117 |
| Hyundai | Kona EV | 24 | $311 | $1,914 | $9,378 | $5,749 | -$3,629 |
| Kia | EV6 | 24 | $179 | $3,999 | $8,295 | $4,318 | -$3,977 |
| Hyundai | IONIQ 5 | 24 | $159 | $3,999 | $7,815 | $3,325 | -$4,490 |
| Ford | Mustang | 39 | $524 | $5,004 | $15,655 | $5,328 | -$10,327 |
When buying a car, most people consider the monthly payments they will make. So leasing is an easy comparison because they are already making monthly payments. However, when you buy a car in cash and plan on owning it for 10+ years, it is hard to say whether paying $8,000 for an EV6 or IONIQ 5 for two years is acceptable.
Let’s play a game.
Let’s say you have another 30 years of car ownership ahead of you. Whenever you buy a new car, you are willing to spend $40,000 in 2024 money. We will exclude maintenance costs, taxes, and inflation to keep things simple.
| Cars Purchased | Years Per Car | Purchase Price | Trade-In | Total |
| 1 | 30 | $40,000 | $5,000 | $35,000 |
| 2 | 15 | $80,000 | $10,000 | $70,000 |
| 3 | 10 | $120,000 | $22,500 | $97,500 |
| 4 | 7.5 | $160,000 | $40,000 | $120,000 |
| 5 | 6 | $200,000 | $70,000 | $130,000 |
| 6 | 5 | $240,000 | $105,000 | $135,000 |
| 10 | 3 | $400,000 | $255,000 | $145,000 |
| 15 | 2 | $600,000 | $450,000 | $150,000 |
The lease cost of a Kia Niro EV ($39,600 MSRP) is $3,500 per year. This means leasing it every two years would cost you $105,000. Not only are you saving money compared to the national average, but you are getting a new vehicle every two years.
However, leasing a Mustang Mach-e ($39,995 MSRP) for $7,800 annually would cost $235,000 for thirty years—over 50% more than buying a new one every two years.
Leasing a KIA EV6/Niro, Hyundai IONIQ 5, or Tesla Model 3 is a sound financial decision.
Are They Any Good?
| Make | Model | C/D | Edmunds | KBB | M/T | USNews | AVG |
| Hyundai | IONIQ 5 | 10.0 | 8.3 | 9.4 | 9.4 | 8.7 | 9.2 |
| Kia | EV6 | 9.5 | 8.0 | 9.0 | 9.2 | 8.8 | 8.9 |
| Ford | Mustang | 9.0 | 8.2 | 9.2 | 8.4 | 8.9 | 8.7 |
| BMW | i4 | 10.0 | 7.8 | 9.2 | 7.5 | 8.7 | 8.6 |
| Tesla | Model 3 | 8.0 | 8.1 | 8.4 | 8.6 | 9.2 | 8.5 |
| Hyundai | Kona | 8.0 | 8.2 | 8.2 | 8.8 | 8.8 | 8.4 |
| Kia | Niro EV | 8.0 | 8.2 | 9.0 | 8.3 | 8.2 | 8.3 |
| Volvo | XC40R | 7.5 | 7.9 | 9.0 | 8.1 | 9.1 | 8.3 |
| VW | ID.4 | 8.5 | 7.8 | 8.8 | 8.4 | 7.9 | 8.3 |
| Tesla | Model Y | 7.5 | 8.1 | 8.2 | 8.8 | 8.4 | 8.2 |
| Volvo | C40R | 7.5 | 7.8 | 9.0 | 8.1 | 8.4 | 8.2 |
| Mercedes | EQB | 7.5 | 7.4 | 8.4 | 7.1 | 8.4 | 7.8 |
| Nissan | LEAF | 6.5 | 7.9 | 7.8 | 6.7 | 8.1 | 7.4 |
Final Thoughts
If you’re buying used or new, there are three choices for SUVs in the same price range. And if you’re wanting to lease an SUV, the EV6 and IONIQ 5 are great options.
I didn’t know much about the BMW i4, but since you can get a used 2024 model for under $40K, it may be a real possibility if you want a sedan. However, the Tesla Model 3 would be the sanest choice for most, whether leasing or buying.
Finally, even though I excluded the Hyundai IONIQ 6… It would have been the second-highest-rated car (9.0), has a lease option of 24mo/$219mo/$3,999 down, and $7500 off new purchases.
