
Plug-in electrics offer big savings with lease incentives
Right now, a lease on a new plug-in car can save you thousands over purchasing the car outright.
Automakers are piling big incentives on plug-in electric cars in an effort to move these pricey compact cars off the lot, and in some cases, the savings total more than $10,000.Lease deals from Ford, Toyota and Nissan all pitch 36-month contracts for less than $300 per month with less than $2,800 down. Most of these manufacturers also offer zero percent financing for up to 60 months.
But even if you want to purchase a plug-in outright, we found it's significantly cheaper to lease one and then buy it after the term expires.
Nissan, for example, is offering a $10,150 lease discount on the 2012 Leaf SV that allows customers to pay $199 per month after $1,999 down. When adding acquisition fees and the resulting purchase price after three years, the total cost is $25,847, nearly $3,000 less than buying one. Even if you receive the full $7,500 tax credit, the Leaf costs $28,550. The offer ends Jan. 31.
Sales of plug-in cars, both hybrid and full-electric, totaled more than 53,000 in 2012, according to data compiled by HybridCars.com. The Chevrolet Volt accounted for nearly half. An oversupply of lithium-ion batteries, slow or limited nationwide rollouts of new electric models and a general lack of demand has pushed automakers to roll out the kind of incentives buyers normally see on pickups and SUVs.
To that end, Ford is offering a $10,750 lease discount on the Focus Electric at Southern California dealers that sets a $249-per-month lease after $2,138 down. Ford said individual dealers determine the car's purchase price after three years, but even if the final price is greater than $15,198 (according to Kelley Blue Book), buyers will still save thousands off the $39,995 MSRP through this lease. For cash buyers, Ford is offering $2,000 rebates when financed through the company's credit arm and zero percent APR for 60 months. Their offers end April 1.
The Chevrolet Volt is available for $329 per month for 36 months after $2,599 down. Like Ford, Chevrolet dealers set the final purchase price. With an estimated $18,000 residual, this purchase is a wash, at about $32,114 total after a three-year-lease or $32,495 outright -- again, assuming you receive the full tax credit.
For the Toyota Prius Plug-in, which can only allow a maximum $2,500 tax credit due to its smaller battery, it's better to buy. Toyota offers $4,000 to $5,000 cash back and zero percent APR for 60 months, which on base models will equal a $28,985 price -- even better than the $269-per-month lease and $2,799 down.
Don't think automakers are suddenly generous or desperate. In a lease, the automakers own the vehicles, which allows them to claim the full federal tax credit and create such attractive monthly prices. So, in reality, Nissan and Ford are offering $3,000 rebates. That's still an impressive deal, especially considering that other similar models aren't discounted at all.
Unless you owe $7,500 worth of federal taxes on April 15, you won't receive the full $7,500 tax credit. Many automakers advertise the $7,500 credit to look like a cash rebate, except it's not. The IRS credits a variable amount up to $7,500 based on your taxable earnings, and only after all your deductions have been taken. According to the IRS, most American families earning less than $100,000 per year will not receive the full credit. Leases allow the buyer to save right away.
With $3,445 down, the Mitsubishi i-MiEV can be leased for $221 per month for 24 months. At the end, Kelley Blue Book estimates the i-MiEV will be worth $11,391, about 38 percent of its $30,675 price when new. Mitsubishi did not specify a purchase price when the lease expires, but at that low resale price, we bet it's safer to lease and score a fire-sale deal should you want to keep it.
Remember, not all these deals are available in all areas -- and not all dealers choose to participate -- so check online before heading out.
[Source: The automakers via Automobile]
Still not cheap enough for me given it would cost about $2000 to have an in home charger hooked up, (that is if they gave me one) and another $1000 for an extension cord and a tube to place it in from charger to reach the car (do not have a garage to park it in).
Then you have the limited range, the charge time, and the higher insurance fees.
If you live in a big city this would be great but if you don't like me then they are liabilities not assets.
That is unless you get a hybrid then you do not have the range problem but you still have all the rest.
EXPLORE NEW CARS
MORE ON MSN AUTOS
Quattroporte, GranTurismo, Alfa Romeo 8C recalled for rusting tie rods.
ABOUT EXHAUST NOTES
Cars are cool, and here at MSN Autos we love everything about them, but we also know they're more than simply speed and style: a car is an essential tool, a much-needed accessory to help you get through your day-to-day life. What you drive is also one of the most important investments you can make, so we'll help you navigate your way through the car buying and ownership experiences. We strive to be your daily destination for news, notes, tips and tricks from across the automotive world. So whether it's through original content from our world-class journalists or the latest buzz from the far corners of the Web, Exhaust Notes helps you make sense of your automotive world.
Have a story idea? Tip us off at exhaustnotes@live.com.

