Buying an electric vehicle (EV) is a big commitment. Plenty of Americans are curious enough to want to try it out. But many are not sure the fledgling infrastructure supporting EVs will meet their needs. Some, knowing how quickly technology can evolve, don’t want to commit now when the technology could improve quickly.
For these people, a cottage industry is developing — extremely short-term leases.
Polestar and the 5-Month Lease
EV-builder Polestar is the only automaker to commit to the idea. The company now offers leases with a 5-month, no-penalty walkaway clause.
But, Bloomberg reports, several other sources also offer short-term EV leases. AutoNation, one of the largest dealership groups in America with about 250 locations, “recently started offering its own ‘microleases’ in six- and 12-month increments.” Ivan Mihov, vice president of mobility for the company, tells Bloomberg, “With EVs in particular, obviously there are a lot of people on the fence.”
Some Car Subscriptions Let You Swap Into and Out of an EV
Some shoppers also use subscription services to test EV ownership.
Yes, you can subscribe to a car. Some automakers have experimented with car subscription services, where users pay a monthly fee that covers access to a car and insurance and can exchange the car for a different one within the automaker’s lineup at regular intervals.
Related: Should You Pay for a Car Subscription?
Volvo’s program, called Care by Volvo, includes its electric vehicles. Porsche’s Porsche Drive subscription program covers its electric Taycan.
Some companies that don’t build their own cars are getting into the EV subscription business. Bloomberg reports that both Sixt and Finn, Germany-based subscription services, offer subscriptions that include some electric cars.
Dealerships Benefit, Too
Microleasing is good for dealerships, which can “more easily monetize a glut of EV inventory,” Bloomberg notes. They will also help create a steady feed of recent used EVs, which are eligible for federal tax incentives under looser rules than those that apply to new EVs.
Leasing, traditionally about a third of the new car market, fell off dramatically during the COVID-19 pandemic. That interrupted a steady flow of lightly used cars that feed into the used car market. The normal pattern began to recover in 2023.
The idea is young, but early evidence shows it could work for many. “Since Polestar launched its flexible lease program in October, roughly half of the carmaker’s customers have opted for the product instead of a longer-term lease or buying outright,” Bloomberg notes.
