How a Financial Planner Leases an EV
By John Owens
A little over three years ago I wrote a blog post on buying a car. It was the peak of the supply chain crisis, I didn’t have an existing vehicle, and I was moving to an area where having wheels wasn’t optional.
The supply chain crisis at the time really limited my options – I was intrigued by EVs, the new Ford Maverick pickup truck at the time, plug-in hybrids – but the reality slapped me in the face. All those options were at dealers far out of the way, salespeople I didn’t know, and big markups on the sticker price. The fact is, I could buy a new Subaru Forester for sticker price from a family friend, or a new Hyundai Elantra for slightly over sticker from a stranger. I chose the former. Locked in a low rate at 2.9% before inflation and rates ticked up, and put $100 down.
I’ve long considered a car to be a tool – less about vanity or status – but merely a means to get around. And I truly loved my Forester – it carted friends around Lancaster, got loaded up for annual beach trips, and persevered in cold and snowy PA winters.
But in time I’ve become more intrigued by EVs and their capabilities. BKFi being a fully remote firm – I work from home, take the train a couple of times a year to NYC for company events and meetings. My family is largely in eastern Pennsylvania as well. And unlike in my early 20s, I tend to hop on a plane for longer trips instead of enduring 8-10 hour drives. So the range factor is less of a consideration now than it was a few years ago.
And I always felt a bit of FOMO from my last car search – having limited options to choose from.
Finally, I feel a bit of social responsibility. Since most of my driving is local – around town or on errands, an EV would not only save me some money on gas – it would also reduce my carbon footprint. And while I recognize that for many folks, EVs have not become affordable enough yet, I’ve found myself in a position where I can spend a little more on a vehicle to have less of an environmental impact.
There’s one more factor here that I’d be remissed if I left out - it’s key to the story. I have absolutely been captivated by the Ford F-150 Lightning – Ford’s fully electric, full-size pickup truck, for years… and I’d be lying if I said that didn’t impact my decision making here.
As with many major purchases I make, it took a lot of time and deliberation. I originally drove the Ford F-150 Lightning last fall on a test drive and decided not to make the leap. At the time, the MSRP was over $70,000, and I was unlikely to receive the EV tax credit the federal government offers. Financing that purchase was going to cost nearly $900+ per month – a big increase from my Forester payment.
Plus, I had an underlying concern. With EV technology rapidly evolving – China’s BYD claiming recently they have a car that can recharge in minutes – buying a $70,000 EV today might be the car equivalent of paying $2,000 for a Gateway computer in 2000 (my parents did this, and I have a lot of cringeworthy instant messenger memories from that old desktop, but prices were about to go down big time).
The more you pay for a car, the more you actually need to care about depreciable value, especially if you think you’ll want to upgrade again in a few years.
All this was to say, buying an actual Ford F-150 Lightning, nearly doubling my car payment, for a vehicle I speculated would depreciate more quickly than most if EV technology takes off – would not be a sound financial move.
So I put a pin in that idea for a few months. From time to time, I’d visit the Ford website and scour incentives. They were getting better, but not great. Finally, early in March, I noticed shift – suddenly lease incentives on the 2024 Lightnings were much better.
Ford was having trouble moving the 2024 inventory even into early 2025 (apparently not everyone loves the Lightning as much as I do) and was willing to slash on the lease quite a bit.
Even better for me – while I’m not able to get the EV tax credit, the leases weren’t eligible for the Federal tax credit to begin with... so Ford effectively worked that $7,500 credit into the price as a rebate.
I did the inventory search and found a few 2024 Lightnings in PA not too far from me. Estimated the payment to be in the $600/mo range for a 39-month lease if I traded in my Forester that had about $5,000 in equity in it. This was much more reasonable and didn’t leave me with the potential of owning a truck with a $45,000 loan that was selling for $25,000 in a few years – that’s a risk that Ford is taking instead.
One dealership had the Flash model – which is slightly above the base – for $590/mo, but they seemed to jerk around on price, not matching what Ford quoted me on their website – and they were over an hour away. The dealer in town had the slightly nicer Lariat model – all black, dual sunroof, leather interior, for about $25 more a month, and was more transparent about pricing. Plus, all the service could be done about 2 miles from my apartment (not that EVs need any oil changes).
I test drove the Lariat and was sold – unlike most pickup trucks, this drove nice – a smooth ride, a huge frunk to load stuff in, tons of legroom for all passengers, and a nice bed to load my bike and beach chair.
Ultimately, they settled on the 36-month lease instead of the 39-month lease for one key reason – a 36-month, 36,000-mile bumper-to-bumper warranty. Anything major breaks before I have to turn it back in – it’s their problem, not mine.
When it comes to some of the numbers that factored into the decision, my car payment went up about $150/mo. My car insurance actually dropped about $20/mo. So the real consideration is fuel.
I’ve estimated that I’ll drive about 8,000 miles a year (although the lease gives me 10,500), and that most of my charging will be done at home at 20 cents per kWh.
Here's a succinct and clear table comparing the two vehicles:
Vehicle Fuel Cost Comparison
| Vehicle | Fuel/Energy Type | Cost for 8,000 Miles |
|---|---|---|
| 2022 Subaru Forester | Gasoline ($3.30/gallon) | $910.80 |
| Ford F-150 Lightning Lariat | Electricity ($0.20/kWh) | $768.00 |
The savings fuel wise isn’t a ton, but it helps offset by about another $10/mo.
Finally, there’s the environmental impact. I’ll be emitting about 40% less due to this change.
Vehicle Emissions Comparison
| Vehicle | Energy Source | Total CO₂ Emissions (8,000 miles) |
|---|---|---|
| 2022 Subaru Forester | Gasoline | 2.45 metric tons |
| Ford F-150 Lightning Lariat | Electricity | 1.48 metric tons |
Ultimately, I do think that a car continues to be a tool to get from one place to another. And that there are a variety of scenarios where buying makes more sense than leasing. I don’t recommend leasing when you have young kids, a long commute, or plan to drive the car into the ground. But sometimes – both for financial and personal reasons – you’re better off leasing if you’re comfortable with the risk – both of knowing you’ll always have a car payment, and that you’re expected to return the car in like condition when the lease is up.
Until the next time I’m back at the dealership, drive safe!