Introduction
If you are looking to buy an EV, leasing one might be a great way to experience the benefits of an EV without a long term commitment. Not only does this make sense in a field where battery technology is rapidly evolving, leasing an EV is now cheaper than leasing your average gasoline car, making it one of the most inexpensive options on the market.
We looked at the some of the most popular EV leases out there to see which one offered the best value and experience. We looked at five different models:
- Prologue (Honda)
- EV6 (Kia)
- Ioniq 6 (Hyundai)
- Model Y (Tesla)
- Model 3 (Tesla)
We evaluated these models based on 4 different factors, cost and value, charging and user experience, range and battery chemistry.
Cost and Value
The lease rate factor is a critical financial metric that helps you evaluate the cost-effectiveness of a lease. This factor, calculated by dividing the average monthly payment (including deposit) by the car’s MSRP, indicates the percentage of the vehicle’s value you’re paying monthly. Lower lease rate factors represent better value.
Based on current data, the Honda Prologue has the lowest lease rate factor and offers the best bang for your buck. The Tesla models are clearly at a premium to the rest of the market and understandably so because they are the most proven EVs out there.
Charging and User Experience
If you are getting an EV, leased or not, you might want to consider buying a level 2 charger for charging at home. This should cover 80-90% of your charging needs. But if you frequently take long trips that exceed 300 miles on a single day you will inevitably have to use a public DC fast charging network.
When it comes to public DC fast charging networks, it is a bit of a boom or bust scenario. There is the Tesla Supercharger network, which offers the best user experience, and then there are other networks like EVGo, Electrify America, which are all trying to catch up with Tesla. In fact, the Tesla Supercharger network is so good that it sometimes make sense to buy a Tesla just to get access to the network.
But both Hyundai and Kia are expected to get access to the Supercharger network in Q1 2025, which should level the the charging network playing field for both brands. The Honda Prologue already has access to the Supercharger network. All these EVs will most likely require an NACS adapter for its older models but are expected to incorporate NACS into its 2025 and later models.
Access to the supercharger network by itself does not guarantee a great user experience. Tesla’s Supercharger network experience has been great for Tesla owners largely because of the Tesla app and charging software which seamlessly connects or performs the “handshake” between the EV and the charging station. Whether a Tesla charging station can seamlessly integrate with a Kia or a Honda remains to be seen. This is why we think a Model 3 or Model Y is the best choice for you if you are going to rely a lot on public superchargers.
Range
The range of an EV, while important, is often slightly overrated as the deciding factor for choosing between different EVs. If you don’t take long trips and live in an area with a lot of charging stations, getting an extra 50 miles of range will have very little value. We did however break down the estimated range for each model:
- Prologue: Estimated 300 miles
- Ioniq 6: Up to 361 miles (long-range version with RWD)
- Kia EV6: Up to 310 miles (long-range RWD version)
- Tesla Model Y: Approximately 330 miles (Long Range AWD)
- Tesla Model 3: 272 miles for Standard Range (LFP) and 333 miles for Long Range (NMC)
Almost all 5 models provide a range between 250 – 350 miles on a single charge. This is more than enough for most users. But if you still suffer from range anxiety and want every last mile possible, the Ioniq 6 with 361 miles on its long-range version is the clear winner here.
Battery Chemistry
We previously covered the importance of battery chemistry in one of our articles here. Battery chemistry in EVs is relevant because it impacts performance, longevity, and safety. The two most common battery chemistries are both Lithium-ion chemistries. They are the Nickel Manganese Cobalt (NMC) chemistry and Lithium-Iron Phosphate (LFP) chemistry. NMCs offer higher energy density and acceleration but suffer from reduced safety and higher degradation. LFPs are a lot more safe and degrade slowly and are now increasingly being preferred as the battery chemistry of choice by OEMs across the world.
Almost all the 5 models compared here use the NMC battery chemistry, with only Tesla’s Model 3 standard range model having the LFP battery chemistry. This is probably a function of these OEMs using battery manufacturers that are not Chinese (LFP battery manufacturing is currently dominated by Chinese companies!). This is bound to change as more and more non Chinese OEMs adopt the LFP chemistry. But as of now, none of these models have a battery chemistry that is superior to the other.
Conclusion
So, which is the best EV leasing deal out there? There is no clear winner across all 4 categories but there each model offers a distinct value proposition.
Best Value: The Honda Prologue. If cost and value are important to you, get the Prologue
Best Charging & User Experience: The Tesla Model 3 or Y. If user experience and reliability are your most important factors, its hard to beat a Tesla
Most Range: The Hyundai Ioniq 6. I wouldn’t choose an electric car just for its range, but if you do, the Ioniq 6 is the way to go.