How to Buy an Electric Car

I recently made a good deal on my third electric car, and it reminded me of how different the process is than shopping for an ordinary gas-powered vehicle.

While much of the conventional car-buying advice still applies, there are additional steps that, when done correctly, can save you thousands of dollars. Here’s the strategy I’ve developed over the past 10 years of electric vehicle shopping that will help you get the best deal on the right car.

What incentives and rebates are available?

Without financial help such as incentives, you'll pay much more for EVs than their gas counterparts. Incentives, which vary from one car to another, might also affect which EV you will choose.

There are three general types of incentives:

• Cash incentives from your state and local governments and, in some cases, electricity companies.

• A federal tax credit of $7,500 if you purchase an EV from a qualifying manufacturer.

• Local perks such as access to carpool lanes, free charging and free parking.

Since I planned to get the Hyundai Kona EV, I knew I would get a $2,000 rebate check from California’s Clean Vehicle Rebate Project and $1,500 off the price of the car from my electricity company, Southern California Edison. The car qualifies for the $7,500 federal tax credit as well, bringing the potential amount of support available in my case to $11,000.

Also, I got carpool-lane access, a huge plus in the traffic-clogged Los Angeles area.

Should I lease or buy an EV?

Electric cars often have special financing programs from the manufacturer. To find what’s available, go to the carmaker’s website and look for a tab that says something like “offers” or “local specials.”

You may see both lease and purchase options, but experience has shown me that it’s best to lease an electric car because:

• EVs depreciate quickly, 52% in three years, according to Car and Driver. If you purchase an EV and want to sell after, say, five years, you will have lost more money than with a gas car.

• The technology is evolving rapidly so your EV will be outdated in three years.

• The travel range of electric cars is growing quickly. I got 73 miles per charge in my first EV, the 2011 Nissan Leaf, 103 miles from my 2012 Toyota RAV4 EV and 258 miles in my Kona.

• Some EV batteries lose their ability to fully recharge after a few years.

Part of my decision to get the Hyundai (besides good reviews from experts) was based on the manufacturer offering a lease special for that month: $1,999 in drive-off fees and a $199 monthly payment for a three-year lease offering 10,000 miles a year.

To get this relatively low monthly payment, Hyundai reduced the cost of this car, which stickered for $39,000, by a whopping $12,000. That discount includes the $7,500 tax credit, which in the case of a lease goes to the manufacturer, and the $1,500 support from the local utility company.

The other available incentive, the $2,000 state rebate, went into my pocket.

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