Electric vehicles (EVs) are becoming a popular choice in Singapore, thanks to increasing sustainability efforts and government incentives. But let’s be honest—leasing an EV can sometimes feel like navigating a minefield of potential penalties. From mileage limits to early termination fees, lease agreements often come with conditions that could cost you if you’re not careful. The good news? Avoiding these penalties is not as complicated as it might seem. With a little foresight and a few practical tips, you can keep those extra costs at bay.
Let’s dive in with actionable strategies that’ll save you money and headaches.
What Happens If You Exceed Your EV Lease Mileage?
One of the most common queries is, “What if I go over my mileage allowance?” Lease agreements typically come with strict mileage limits, and exceeding these limits can lead to hefty charges—think anywhere from $0.10 to $0.30 per kilometre.
To avoid these penalties:
Track your mileage regularly: Make it a habit to check your odometer at the end of each week. Many EVs have built-in apps or dashboards that can help you monitor your usage.
Plan long trips wisely: If you’re planning a road trip, consider renting another vehicle instead of using your leased EV. It might save you more in the long run.
Negotiate upfront: Before signing the lease, ask your dealership if they offer higher mileage packages. Paying slightly more upfront can sometimes be cheaper than excess mileage charges.
How to Keep Your Leased EV in Tip-Top Shape
Another major source of penalties? Wear and tear. But what does “normal wear and tear” even mean? For most leases, it refers to minor scratches or dings that come with regular use. Anything beyond that could result in extra charges.
Here’s how to avoid those fees:
Get regular maintenance: Stick to your vehicle’s maintenance schedule. For EVs, this includes keeping the battery in good condition and ensuring software updates are installed promptly.
Fix minor issues early: Have a small scratch or dent? Get it repaired before returning the car. It’s often cheaper to handle repairs yourself than to leave it to the dealership.
Keep it clean: It sounds simple, but a tidy car can go a long way. Regularly wash and vacuum your EV to avoid extra cleaning fees.
What If You Need to End Your Lease Early?
Life happens. Maybe you’re moving out of Singapore or upgrading to a newer EV. Ending a lease early can be expensive, with fees sometimes running into the thousands.
Here’s how to minimise these costs:
Explore lease transfers: In Singapore, platforms like Carousell often have users looking to take over leases. Your dealership might also have a programme for lease transfers.
Negotiate with your dealer: If a transfer isn’t an option, talk to your dealer about early termination fees. Sometimes, they’re open to waiving or reducing costs under certain circumstances.
Plan ahead: If there’s even a slight chance you’ll need to terminate early, choose a lease with flexible terms.
Are Late Payments a Problem? Absolutely!
Late lease payments don’t just hurt your wallet; they can also damage your credit score. With the rise of automated payment systems, there’s really no excuse for missing deadlines anymore.
Tips for staying on track:
Set up autopay: Link your lease payments to your bank account or credit card for automatic deductions.
Use reminders: If autopay isn’t your thing, set calendar alerts a few days before the due date.
Communicate with your dealer: If you’re ever in a financial pinch, reach out to your dealer immediately. They may be able to offer temporary solutions.
Why Reviewing Your Lease Agreement Matters
How many of us actually read the fine print? Yet, that’s where the devil truly lies. EV lease agreements are full of clauses that could catch you off guard if you’re not careful.
Before you sign:
Understand the mileage policy: Know exactly how much you’ll be charged if you exceed your limit.
Check wear and tear definitions: Ask your dealer for examples of what constitutes “excessive” wear and tear.
Look into early termination details: Some leases have hidden fees for breaking the agreement early—know them upfront.
Looking for an EV Delivery Partner? Check Out EVFY!
If you’re leasing an EV for business purposes, partnering with a reliable delivery service like EVFY can help you make the most of your investment. With a 100% electric fleet and optimised routes, EVFY not only helps you stay eco-friendly but also ensures maximum efficiency.
Want to learn more? Contact EVFY today and discover how they can transform your delivery operations while keeping costs under control.