Electric vehicles (EVs) are revolutionizing the way businesses operate, especially in logistics and delivery. Yet, there’s a catch: EVs depreciate faster than their traditional counterparts. Some studies suggest EVs lose up to 50% of their value in the first three years, compared to 35-40% for internal combustion engine vehicles. For businesses, that’s a huge financial risk.
EV leasing is a game-changing solution that eliminates these depreciation headaches. Let’s explore how leasing mitigates depreciation risks while offering businesses unparalleled flexibility and cost-efficiency.
How Does EV Leasing Transfer Depreciation Risks?
The biggest advantage of leasing an EV is risk transfer. Here’s how it works:
Ownership remains with the leasing company.
When you lease an EV, you’re essentially renting it for a fixed period. The leasing company retains ownership and, more importantly, the risk of depreciation.No unexpected losses.
If the market value of the EV drops drastically—perhaps due to rapid advancements in EV technology—you don’t have to worry. At the end of the lease, you simply return the vehicle.
This makes leasing particularly appealing for businesses that want predictable costs and minimal exposure to fluctuating asset values.
Why Are Monthly Payments Lower with Leasing?
Leasing is cost-effective because it’s designed around the expected depreciation of the vehicle. Instead of paying the full purchase price, you only pay for the vehicle’s usage over the lease term.
Manufacturer incentives: Many EV manufacturers offer rebates and tax credits that leasing companies pass on to customers. This directly reduces your monthly payment.
No capital tie-up: Unlike purchasing, leasing doesn’t lock your capital into a rapidly depreciating asset. Businesses can allocate these funds to growth initiatives, marketing, or other operations.
For example, a business might save thousands annually by leasing EVs compared to buying them outright. That’s cash you can reinvest into your company.
How Does Leasing Offer Flexibility for Tech Upgrades?
The EV industry evolves at breakneck speed. Newer models with longer ranges, faster charging, and better technology are released almost every year. Owning an EV means being stuck with outdated technology, but leasing solves this problem.
Frequent upgrades: At the end of your lease, you can upgrade to a newer model with improved features.
Adapt to business needs: If your fleet requirements change—say, you need larger EVs for increased cargo—you can switch to a different vehicle size when renewing the lease.
This flexibility ensures your business always has the best tools to stay competitive in a rapidly changing market.
What Are Predetermined Residual Values and Why Do They Matter?
Residual value is the estimated worth of a vehicle at the end of its lease term. Leasing agreements typically lock this value in advance, providing businesses with clarity and financial security.
No surprises: If the vehicle’s market value dips below the residual value, the leasing company absorbs the loss.
Simplified returns: You’re not responsible for reselling or dealing with depreciation losses. Simply return the vehicle and walk away.
This predetermined structure makes leasing a low-risk option for businesses concerned about fluctuating EV resale values.
Are There Tax Benefits to Leasing EVs?
Yes, EV leasing can offer significant tax advantages.
Tax credits and rebates: Leasing companies often claim EV tax credits and pass the savings onto customers through reduced lease costs.
Expense deductions: Lease payments can often be categorized as operating expenses, potentially lowering taxable income.
These financial benefits make leasing not only practical but also economically advantageous.
How Does Data-Driven Leasing Improve Risk Management?
Innovative leasing companies now use data analytics to enhance decision-making and manage risks.
Battery performance tracking: Connected vehicle technology monitors battery health, enabling better predictions of residual value.
Market insights: Data helps leasing companies adjust pricing and terms to reflect real-world conditions, ensuring fairness and transparency for lessees.
This tech-driven approach ensures businesses get the best value while minimizing depreciation concerns.
Why Choose EVFY for Your EV Leasing Needs?
At EVFY, we specialize in providing electric vehicle leasing solutions tailored to businesses. With our fleet of efficient, fully electric vehicles, we help companies cut costs, reduce emissions, and stay ahead of the curve.
Our EV Offerings:
BYD T3
Max Payload: 780 kg
Cargo Volume: 3800 L
Range: Up to 300 km
Charge Time: AC 7.6h / DC 1.3h
Perfect for small-scale deliveries, this van offers excellent range and quick charging capabilities.
DFSK EC35
Max Payload: 1100 kg
Cargo Volume: 4800 L
Range: Up to 331 km
Charge Time: AC 5.9h / DC 1.0h
For larger cargo and longer distances, the DFSK EC35 is the ideal choice.
Golden Dragon XML5036
Max Payload: 1730 kg
Cargo Volume: 6500 L
Range: Up to 250 km
Charge Time: AC 7.6h / DC 1.3h
Designed for heavy-duty operations, this vehicle handles big loads effortlessly.
DFSK EC31
Max Payload: 1280 kg
Cargo Volume: 3500 L
Range: Up to 280 km
Charge Time: AC 5.9h / DC 1.0h
Compact yet powerful, the EC31 is ideal for urban deliveries in tight spaces.
SRM T3
Max Payload: 1625 kg
Cargo Volume: 3500 L
Range: Up to 300 km
Charge Time: AC 8.1h / DC 1.3h
For heavier goods and longer routes, the SRM T3 combines durability with efficiency.
At EVFY, we’re more than just a leasing company—we’re your partner in sustainability and efficiency. By choosing us, you gain access to the latest EV models, flexible lease terms, and data-driven insights that maximize your business potential.
Ready to Future-Proof Your Fleet?
Switch to EV leasing today and say goodbye to depreciation risks. Contact EVFY now and take the first step toward smarter, greener business operations.