Planning to switch to an Electric Vehicle? Find Out If Renting an EV is Better Than Buying It

A rent or buy comparison of electric vehicles

A rent or buy comparison of electric vehicles

One of the best features of electric vehicles (EV) is their low running cost. One fully charged battery will drive the car for dozens of miles. Compare this to the ICE vehicles (Internal Combustion Engine), and the rising fuel costs always keep the conventional car owners peeved. On occasions, EV owners have complained about technical faults in the cars and two-wheelers. But we can expect these teething problems to get resolved as EV technology improves. 

However, strictly from a cost perspective, EVs score high in running costs but the price of an ICE vehicle is much lower than an EV. This has led many car owners to the dilemma of whether to buy or lease from an EV rental company.

Also Read: Planning to buy an electric car? How insurance is different from regular cars

Cost Comparisons – An entry-level electric vehicle is priced almost two times the cost of a regular vehicle of a comparable segment. Even in the two-wheeler segment, electric bikes can cost 1.5 times more than a petrol two-wheeler. This is largely because of the high cost of battery imports. But if you rent an EV instead, you are just paying monthly or daily usage charges. This will be significantly light on your wallet.  

No Concerns Over Depreciation – An asset like a car gets depreciated over time. After only a couple of years, the resale value of the car may seem harshly unfair to the car owner. Besides, depreciation reduces the Insured Declared Value of the car. So, you end up getting less money on your insurance claims. No such worries if you opt for electric vehicle rent instead. 

No Concerns Over Maintenance – The cost of car ownership includes a significant cost of the maintenance of the car. Maintenance cost is significantly low in EVs, but you will have to service parts like brakes and tyres in two-wheelers, and additionally car parts like windshield wipers, washer fluids, steering, air filter, suspensions etc. But then again, these costs wouldn’t bother you if you are not the car owner and rent it instead.

Also Read: Planning to take car loan? These banks offer the most affordable car-loans. See full list here

However, some of these arguments in favour of renting EVs may not hold for long. Earlier this year, the minister of road transport and highways, Mr. Nitin Gadkari stressed that the government is committed to bringing down the cost of EVs to the ICE vehicle levels. To achieve this, India plans to increase the production of lithium-ion batteries domestically. Besides, by buying an EV through a car loan or bike loan, you can claim tax benefits of up to Rs 1.5 lakhs on the interest portion. You will miss out on it if you rent the EV instead.

Also Read: Why short-term car loan tenures are a better choice

With charging stations’ infrastructure improving in India every day, buying an EV is feasible if you have long-term car ownership intentions. However, if you want to try out an EV and wait before the technology and infrastructure around it improves further, check the EV-on-rent plans in your area.

Source:

https://auto.hindustantimes.com/auto/electric-vehicles/ev-prices-to-be-as-good-as-ice-vehicles-within-a-year-nitin-gadkari-41655524684123.html

https://timesofindia.indiatimes.com/blogs/voices/ev-leasing-can-give-a-much-needed-boost-to-the-adoption-of-evs-in-india/

https://www.smartprix.com/bytes/major-ev-players-believe-leasing-scheme-to-be-a-game-changer/

https://www.pehalnews.in/should-you-rent-an-electric-vehicle-ev-before-buying-one-here-is-a-cost-comparison/2652578/

https://electrek.co/2022/06/26/buy-or-lease-electric-vehicle/

https://www.fleetmaintenance.com/equipment/battery-and-electrical/article/21250369/breakdown-of-ev-maintenance-expenses

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