zzdcar
Home
/
Reviews
/
Culture
/
Six Month Microleases Are Finally Getting People To Drive EVs
Six Month Microleases Are Finally Getting People To Drive EVs-May 2024
2024-02-19 EST 22:11:51

A general view of atmosphere during the celebration of the North American debut of the Polestar 3 at The Shed on March 28, 2023 in New York City

The ever-evolving landscape and about going green has forced automakers to get creative with their marketing and . Microleasing, according to , is the latest way to get butts in seats. The whole goal is to just get a prospective EV buyer behind the while they wait a few months for their dream EV to finally hit the market.

Bloomberg kicks off with an example from Polestar; while the highly coveted Polestar 3 has yet to actually arrive at dealerships, the automaker has started to offer microleases on its Polestar 2. For a little as five months, you’ll be able to drive an EV, then swap it in as soon as your desired EV arrives.

And microleasing isn’t the only strategy; other EV makers are opting for things like subscriptions to keep cars moving off their lots, at least for a while. EV inventory is piling up at plenty of dealerships in America as the “early adopter” phenomenon dies down, and plenty of prospective buyers are hesitant to commit to one vehicle when such rapid advancements are being made in the EV tech space. Why buy an EV now when next year you can buy an EV with better range and faster charging capabilities? Microleasing gives a prospective buyer the chance to experience EV life without having to commit to a technology that will become rapidly outdated.

Here’s a little more from Bloomberg:

While short-term setups may not be cheaper than car ownership in the long run, they are helping drivers dodge hefty upfront payments while EV prices and interest rates are still relatively high. There are also more EVs to hold out for than ever. Although the US market now boasts 55 distinct electric models, that number is expected to grow another 20% to 30% next year. New cars in the pipeline include the next iteration of the Hyundai Ioniq and the long-awaited Volkswagen ID.Buzz, as well as a parade of three-row SUVs.

Carmakers and dealers, meanwhile, can use microleases to more easily monetize a growing glut of EV inventory. Philipp Sadek, a principal at Boston Consulting Group, predicts subscriptions and short-term leases could soon account for up to 15% of new car transactions around the world, compared with “low single digits” now. “The car buying process today is still very tedious,” Sadek says. “With this, one moves from ownership to usership.”

In the pre-pandemic era, several automakers introduced subscription leases, which were essentially month-to-month leases that allowed subscribers to pop between vehicles every 30 days — and it didn’t really work. Drivers got tired of figuring out new controls in their cars every few months, and automakers were required to keep a ton of idle inventory on hand in the instance that someone might want to drive that specific car.

But the business model might have just needed to be built on EVs for it to make sense. In the ICE-powered car world, you could trust that, say, your Cadillac XT6 would remain pretty much the same for a few years; it made more sense to opt for a longer lease, then trade your car in when a newer, better model came out. In the EV era, though, massive advancements are made on the regular; a month-to-month lease might just be the perfect thing to convince drivers to make the switch.

Comments
Welcome to zzdcar comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Culture
I Entered My Lifted Miata In A Real Off-Road Race, Here's What Happened
I Entered My Lifted Miata In A Real Off-Road Race, Here's What Happened
I have two automotive loves: The first is the Miata, the second is off-road racing. For a while I raced air-cooled Volkswagens in the deserts of California and Nevada and I was lucky enough to co-drive in a class 11 stock bug in the Baja 1000 a few years...
May 15, 2025
Watch ABS Fail When MotorWeek Tests A 1997 Chevy S-10
Watch ABS Fail When MotorWeek Tests A 1997 Chevy S-10
MotorWeek’s is some of the on the internet. The long-running automotive news magazine has a treasure trove of tests after being on the air for over 40 years. Where else can you find detailed instrumented testing of long-forgotten cars like the or a ? MotorWeek’s recent Retro Review upload is...
May 15, 2025
Toyota Is Moving A Prewar 700-Ton Press Machine Halfway Around The World
Toyota Is Moving A Prewar 700-Ton Press Machine Halfway Around The World
closed its São Bernardo Plant in November 2023, marking the end of its first overseas production facility. The closure caps off a period of continuous car production in São Paolo, , lasting over 60 years. The plant was home to a Komatsu 700-ton press that predates itself. And now...
May 15, 2025
I Can't Get Enough Of This YouTuber Who Builds Tiny, Fully Functional Scale-Model Cars
I Can't Get Enough Of This YouTuber Who Builds Tiny, Fully Functional Scale-Model Cars
I love tiny, of . I have a that is roughly half the size of a normal cat, and she’s perfect. I own a 2013 , which is like the miniature version of a normal-sized vehicle (at least here in Texas) — but beyond that, I also own a Hot...
May 15, 2025
Subaru Had It Right All Along
Subaru Had It Right All Along
When first came to the United States, it sold small funky cars that were decidedly un-American. As the company grew its own identity and became more established in the U.S., it became the first automaker to offer an all-wheel-drive passenger car in 1975. Subaru was also an early-adopter of...
May 15, 2025
2024 Kia EV9: What Do You Want To Know?
2024 Kia EV9: What Do You Want To Know?
At long last, we are about to get behind the wheel of for the first time. Sure, , and sure, , and sure , but hey — what can you do? Anyway, before we get behind the wheel of this three-row electric beast, we want to know what you...
May 15, 2025
Copyright 2023-2025 - www.zzdcar.com All Rights Reserved