Why are US EV leases soo much cheaper than in the UK?

Why are US EV leases soo much cheaper than in the UK?

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Pistonheadsdicoverer

Original Poster:

377 posts

53 months

Thursday 16th May
quotequote all
Just watch a video about Toyota and Nissan EV prices in the US and one shocking stats is that you can get a BZ4X from about $129 on a 2 year lease with 5000 miles and 9 months money down. I mean, that's about 1/4 of the price here. Why are their prices so much competitive compared to ours?

Mad Maximus

473 posts

10 months

Thursday 16th May
quotequote all
Cus America. Everything is cheaper over the pond
Everything except healthcare again Cus America.

off_again

13,079 posts

241 months

Thursday 16th May
quotequote all
A large amount of competition, manufacturers who offer MASSIVE incentives to get cars on the road, a very competitive dealer network that might get stuffed with cars they cant sell, so punt them out at a big discount (on lease) and not forgetting that there are the possibility of local state or federal incentives too.

GT9

7,564 posts

179 months

Thursday 16th May
quotequote all
Mad Maximus said:
Cus America. Everything is cheaper over the pond
Everything except healthcare again Cus America.
Almost as if there's a link between quantity over quality and buggering up your health.

raspy

1,798 posts

101 months

Thursday 16th May
quotequote all
Pistonheadsdicoverer said:
Just watch a video about Toyota and Nissan EV prices in the US and one shocking stats is that you can get a BZ4X from about $129 on a 2 year lease with 5000 miles and 9 months money down. I mean, that's about 1/4 of the price here. Why are their prices so much competitive compared to ours?
You might want to do some proper research rather than watching random videos;

"Recently, Toyota turned heads with a $129 per month and $1,999 due at signing lease “deal” on the electric bZ4x SUV. Is it real, though?

First thing to know — this is the manufacturer’s offer, not an actual offer from a dealer who can sell you the car. It requires a dealer contribution (i.e., a dealer discount) of $1,353 to make those numbers work.

A dealer is not obligated to honor that discount.

Second, this manufacturer offer only applies to 2023 base XLE models in the San Francisco Region — in which there are precisely zero matching vehicles, seeing as we are well into 2024."

https://leasehackr.com/blog/2024/4/23/is-it-real-t...



Pistonheadsdicoverer

Original Poster:

377 posts

53 months

Thursday 16th May
quotequote all
raspy said:
You might want to do some proper research rather than watching random videos;

"Recently, Toyota turned heads with a $129 per month and $1,999 due at signing lease “deal” on the electric bZ4x SUV. Is it real, though?

First thing to know — this is the manufacturer’s offer, not an actual offer from a dealer who can sell you the car. It requires a dealer contribution (i.e., a dealer discount) of $1,353 to make those numbers work.

A dealer is not obligated to honor that discount.

Second, this manufacturer offer only applies to 2023 base XLE models in the San Francisco Region — in which there are precisely zero matching vehicles, seeing as we are well into 2024."

https://leasehackr.com/blog/2024/4/23/is-it-real-t...
Thanks for the link.

I see a Q8 E-tron there for $599/£472 with no deposit (i.e, the equivalent of 1 + 35), 7500 miles
https://pnd.leasehackr.com/d/240531-1714710696

In the UK? £956.51.... https://leasing.com/independent-brokers/gridserve-...

Sheepshanks

35,063 posts

126 months

Thursday 16th May
quotequote all
raspy said:
First thing to know — this is the manufacturer’s offer, not an actual offer from a dealer who can sell you the car. It requires a dealer contribution (i.e., a dealer discount) of $1,353 to make those numbers work.

A dealer is not obligated to honor that discount.
That's common on PCP deals in the UK. On leases some dealers will rebate part of their profit - common on VW Group deals.

Of course in the US there's no VAT and EVs are often subsidised by the State. I think the headline price on a Model 3 in California is just over $200/mth

James6112

5,433 posts

35 months

Thursday 16th May
quotequote all
Unless i’m missing something.
A Tesla Y is around 1/2 the price in the US





Can you buy a RHD in the US & get it shipped?!

Edited by James6112 on Thursday 16th May 23:15

ShortBeardy

166 posts

151 months

Thursday 16th May
quotequote all
that Tesla price is a little "enthusiastic"
It includes the 7.5k Federal Tax credit and an estimated fuel saving of 6k compared with a similar ICE car.
so the list is 13.5 k more...
Most will get the Federal Tax credit (which is given at point of sale), but realistically you at least need to add 6k to get a sales value

raspy

1,798 posts

101 months

Friday 17th May
quotequote all
Pistonheadsdicoverer said:
Thanks for the link.

I see a Q8 E-tron there for $599/£472 with no deposit (i.e, the equivalent of 1 + 35), 7500 miles
https://pnd.leasehackr.com/d/240531-1714710696

In the UK? £956.51.... https://leasing.com/independent-brokers/gridserve-...
Q8 E-tron quote includes the $7,500 federal tax credit too.

Yeah, so if you're converting from $ to £, cars might seem cheaper in the USA, but a lot of stuff is vastly more expensive there than here. Just look at the cost of a short haul flight in the USA vs a short flight from UK to France, and the cost of fresh fruit and veggies there is insane.

Sheepshanks

35,063 posts

126 months

Friday 17th May
quotequote all
ShortBeardy said:
that Tesla price is a little "enthusiastic"
It includes the 7.5k Federal Tax credit and an estimated fuel saving of 6k compared with a similar ICE car.
so the list is 13.5 k more...
Most will get the Federal Tax credit (which is given at point of sale), but realistically you at least need to add 6k to get a sales value
It's odd how there's so many rules and regulations in the US (an American colleague who lives in France says California makes French bureaucracy seem simple) yet they can include fuel savings in the headline price. That saving disappears when you click through to buy.

Cars have always been super-cheap to lease in the US though - their used car prices are far higher than ours.

Dave Hedgehog

14,686 posts

211 months

Friday 17th May
quotequote all
ShortBeardy said:
that Tesla price is a little "enthusiastic"
It includes the 7.5k Federal Tax credit and an estimated fuel saving of 6k compared with a similar ICE car.
so the list is 13.5 k more...
Most will get the Federal Tax credit (which is given at point of sale), but realistically you at least need to add 6k to get a sales value
US displayed prices do not include sales taxes? Is that correct.

autumnsum

435 posts

38 months

Friday 17th May
quotequote all
Used car prices are higher in the USA too, we have it really good on used cars.

off_again

13,079 posts

241 months

Friday 17th May
quotequote all
Pistonheadsdicoverer said:
Just watch a video about Toyota and Nissan EV prices in the US and one shocking stats is that you can get a BZ4X from about $129 on a 2 year lease with 5000 miles and 9 months money down. I mean, that's about 1/4 of the price here. Why are their prices so much competitive compared to ours?
And that Toyota lease deal is real. There are plenty of Tesla's around me here in California, but wow, suddenly there are a lot of BZ4Z's now. I have seen around 5 in the last week alone (all different colors). I am sure that Toyota is losing money on each one, but they are absolutely flooding the market and its working so far.

Big Nanas

2,063 posts

91 months

Friday 17th May
quotequote all
My (ex-pat) friend lives in San Francisco and he's literally just changed his current EV for a Hyundai Ioniq 5.
The negotiations went from $480 a month with $6500 down, to $329 a month with $0 down.
I've been with him when he negotiates before, and it's really quite something how he does it (but he always was good with this sort of thing).

As generally the way with the US, this was a stock-car and with the upcoming update for the Ioniq 5 imminent, I guess they're motivated to move their current stock.

dvs_dave

9,040 posts

232 months

Friday 17th May
quotequote all
Headline grabbers excluding all fees and taxes, with incredibly limited availability.

You’re not going to score one of these deals, and the OTR price is always a good bit higher.

US cars aren’t especially cheap (and used are expensive), and doing exchange rate comparisons is meaningless. Compare the price to average household incomes in local currencies to get a feel for real world affordability. A $50k car in the US is the equivalent of a £50k car in the UK.

dvs_dave

9,040 posts

232 months

Friday 17th May
quotequote all
ShortBeardy said:
that Tesla price is a little "enthusiastic"
It includes the 7.5k Federal Tax credit and an estimated fuel saving of 6k compared with a similar ICE car.
so the list is 13.5 k more...
Most will get the Federal Tax credit (which is given at point of sale), but realistically you at least need to add 6k to get a sales value
It also excludes all fees and taxes/VAT. Add on 10-20% to that depending on which state/city you’re in.

Edited by dvs_dave on Friday 17th May 20:25

mikef

5,254 posts

258 months

Friday 17th May
quotequote all
Having bought and leased cars in California - prices are much cheaper than in the UK; I bought a new 4L Ford Explorer for USD 13K and a Ford F150 Lightning for USD 20K. Several years later I sold the F150 in the UK for more than I paid for it new

Most car finance deals in the US are 0% or close to that, with zero deposit (UK 0% offers usually require something like. 50% deposit)

dvs_dave

9,040 posts

232 months

Friday 17th May
quotequote all
mikef said:
Having bought and leased cars in California - prices are much cheaper than in the UK; I bought a new 4L Ford Explorer for USD 13K and a Ford F150 Lightning for USD 20K. Several years later I sold the F150 in the UK for more than I paid for it new

Most car finance deals in the US are 0% or close to that, with zero deposit (UK 0% offers usually require something like. 50% deposit)
Lol, It’s not 2004 anymore. F-150 Raptor (Lightning’s modern equivalent) starts at about $80k, plus fees and taxes. So close to $100k otr.

ShortBeardy

166 posts

151 months

Saturday 18th May
quotequote all
US car prices typically don't include
-a delivery fee (from the manufacturer to the dealer),
-any state taxes due (different in every state and noting that some do not charge state tax) also in some cases tax level can be different in different towns.
In addition most dealers charge a documents fee (title and license), and sometimes if the market will bear it and they are feeling frisky, a dealer markup.
One of the upsides of buying a Tesla in the US is that you buy direct from a factory outlet (Tesla owned dealer), and there is no third party. Prices are transparent and fixed.

However, Tesla move price up and down to control stocking levels as customer demand and factory production rates change - a bit like buying air tickets. This in itself causes some people to have heartache, but you just have to make your value decision at the time of purchase and dont look back.