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  • EVs are getting better fast, and you want one. Here’s why you might want to lease, not buy

    EVs are getting better fast, and you want one. Here’s why you might want to lease, not buy

    I’d lease, not buy, if I were shopping for an electric vehicle today.

    Not because I doubt EVs’ benefits, convenience or reliability, but because volatile prices and evolving technology make them likely to improve faster — maybe a lot faster — than we’re used to with the mature technology and economics of internal combustion engines, or ICE.

    Tesla's repeated price cuts have caused other EV makers to follow suit.

    Tesla’s repeated price cuts have caused other EV makers to follow suit.

    As appealing as many of today’s EVs are, there’s a good chance one with longer range, better features, a more appealing price — or all of the above — will be available in a time frame closer to the expiration of a 36-month lease than the eight-plus years many buyers keep a new car or truck.

    “Everything about EVs is moving very quickly,” said Alex Knizek, Consumer Reports’ chief of EV testing. “What you buy today may be obsolete tomorrow.”

    That’s not to say any EV bought today won’t work tomorrow, next year, or probably 10-20 years from now. It does mean you may be able to get a better vehicle soon, for the same price, maybe even less.

    On top of that, S&P Global Mobility analyst Stephanie says owning an EV is in many ways a new lifestyle, from easy charging at home to planning long trips around charger availability along the way.

    “Leasing is an opportunity to find out if it works for you,” she said.

    The Ford Mustang Mach-E has seen repeated price cuts and added a second battery chemistry for the 2024 model year.The Ford Mustang Mach-E has seen repeated price cuts and added a second battery chemistry for the 2024 model year.

    The Ford Mustang Mach-E has seen repeated price cuts and added a second battery chemistry for the 2024 model year.

    ‘Unexpectedly under water’

    Consumers like predictability, but with EVs, everything’s a moving target: Price, capability, residual value.

    In just the last 60 days:

    • Market leader Tesla slashed prices, forcing other automakers to follow suit. Tesla price cuts became almost routine in 2023 as the automaker responded to growing competition.

    • Ford announced faster charging and longer range for the 2024 Mustang Mach-E.

    • Ford cut F-150 Lightning prices up to $5,500, angering some early buyers.

    • Chevrolet dropped prices of its new Blazer EV by as much as $6,520.

    “It’s a lot of mental calculus,” Cox Automotive Erin Keating said. “Some Tesla owners found themselves unexpectedly under water.”

    Beyond pricing volatility, Keating added that leasing makes some EVs eligible for tax credits not available with an outright purchase.

    The number of EVs eligible for those credits will increase every year as automakers scramble to source batteries in countries the U.S. considers reliable strategic and business partners.

    That will make more EVs affordable, increasing the number of models shoppers can consider.

    More: The 2024 Chevy Blazer EV might put a charge into GM’s ambitious electric vehicle plan

    More: I tested one of GM’s first highway EV fast-chargers. Here’s how it went.

    More: The 2024 Chevy Blazer EV might put a charge into GM’s ambitious electric vehicle plan

    ‘We haven’t even decided which plug to use’

    Battery technology — a key to EV range and convenience — is also evolving rapidly — around 8% annually, according to auto writer and EV expert John Voelcker.

    Ford, for instance, just added a battery with a new, less expensive chemistry to the Mach-E.

    “Charging, batteries and range are the big topics,” Consumer Reports’ Knizek said. “Battery technology is changing rapidly, from chemicals to physical packages and electronic controls. The 2020 model of a vehicle may go 190 miles on a charge, while the 2022 can go 225.

    The award-winning 2024 F-150 Lightning pickup has been held for quality review since Feb. 9, 2024, Ford said. They'll begin shipping the vehicle to dealers after the review is complete.The award-winning 2024 F-150 Lightning pickup has been held for quality review since Feb. 9, 2024, Ford said. They'll begin shipping the vehicle to dealers after the review is complete.

    The award-winning 2024 F-150 Lightning pickup has been held for quality review since Feb. 9, 2024, Ford said. They’ll begin shipping the vehicle to dealers after the review is complete.

    “Consider the switch to Tesla’s charging system,” he added. “That’s a fundamental change in powertrain technology. We haven’t even decided which plug to use yet.”

    Beyond that, EV makers regularly add new features. Some come as over-the-air software updates, but others will be rolled out to increase the appeal of next year’s model. That’s true of ICE vehicles, too, but the range of improvement to EVs may be wider.

    Battery performance and longevity are also open questions. California, which sets the pace for nearly all EV policy in the U.S., requires a 10-year/150,000-mile warranty, but there’s no generally accepted way to measure a used EV battery’s efficiency and future performance. That’ll be a determining factor in the value of a used EV, a major concern if you own an EV, somebody else’s problem if you leased.

    “I think some delay in EV uptake is people waiting for improvements in batteries, range and charging,” Keating said. “Customers still need to see battery-lifecycle and repair-cost trends.”

    2024 Chevrolet Blazer EV electric five-passenger midsize SUV2024 Chevrolet Blazer EV electric five-passenger midsize SUV

    2024 Chevrolet Blazer EV electric five-passenger midsize SUV

    The case for keeping your EV

    On the other hand, it’s hard to beat not having a car payment. EVs are so tech-laden it’s easy to think of them like a mobile phone, where new features trained many owners to trade up every couple of years.

    “We’ve so conditioned people to behave on the evolutionary timetable of cellphones that it’s hard to wrap your head around the idea of buying something and using it for seven to 10 years, ” Keating said, “but that’s what a vehicle is for most people.”

    And a lot of those people will probably consider missing out on a few new features, a fair trade-off for not writing a big check every month.

    Maybe EVs aren’t that different from ICE vehicles after all.

    Contact Mark Phelan: 313-222-6731 or mmphelan@freepress.com. Follow him on Twitter @mark_phelan. Read more on autos and sign up for our autos newsletterBecome a subscriber.

    This article originally appeared on Detroit Free Press: Lease or buy an EV? They’re getting better fast. What to consider



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  • Von der Leyen warns China’s Xi on ‘market distorting practices’

    Von der Leyen warns China’s Xi on ‘market distorting practices’

    French President Emmanuel Macron (R) gestures as he greets European Commission President Ursula von der Leyen ahead of the Chinese President’s arrival at the Elysee presidential palace. Ludovic Marin/AFP/dpa

    European Commission President Ursula von der Leyen has warned Chinese President Xi Jinping that the European Union will not tolerate Beijing’s “market distorting practices” ahead of a three-way meeting in Paris on Monday.

    Xi was scheduled to meet von der Leyen and French President Emmanuel Macron at the Élysée Palace on Monday morning. He arrived in the French capital on Sunday on a six-day European trip which will also include stops in Serbia and Hungary.

    Chinese state subsidies for its electric vehicle and steel industries pose a serious threat to European industries and could even lead to “de-industrialization in Europe,” von der Leyen said, in comments made public.

    “China is currently manufacturing, with massive subsidies, more than it is selling due to its own weak domestic demand,” von der Leyen said. “This is leading to an oversupply of Chinese subsidized goods, such as EVs [electric vehicles] and steel, that is leading to unfair trade,” she added.

    Von der Leyen said “current imbalances in market access are not sustainable and need to be addressed.”

    The European Commission announced last year that it would examine possible tariffs on electric cars from China. Chinese electric vehicle giant BYD has signed a deal to begin manufacturing cars in Hungary, where Xi will end his European trip on Friday.

    Von der Leyen emphasized that the EU is not seeking to “decouple from China,” describing Europe’s relationship with China as “one of the most complex, but also one of the most important.”

    According to reports from Paris, Xi’s state visit will focus on the wars in Ukraine and the Middle East, economic issues and climate protection. Cooperation in the fields of culture, sport and science are also on the agenda.

    Following the meeting at the Élysée Palace, Macron and Xi plan to meet in the afternoon for one-on-one talks. A Franco-Chinese business meeting and a state banquet are scheduled for the evening.

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  • Chinese electric vehicle giant with surging profits

    Chinese electric vehicle giant with surging profits

    China’s BYD posted a record annual profit for 2023 on Tuesday, just months after surpassing Tesla to become the world’s leading electric vehicle seller.

    Here’s what you need to know about the Chinese EV firm with global ambitions.

    – ‘Build Your Dreams’ –

    Known as “Biyadi” in Chinese — or by the English slogan “Build Your Dreams” — BYD was founded in 1995 in the southern industrial hub of Shenzhen.

    It initially specialised in the design and manufacture of batteries before moving into the automotive sector in 2003.

    Close government cooperation in Shenzhen — where the public bus fleet has already fully transitioned to electric models — gave it an important boost.

    The firm recorded a net profit of 30 billion yuan ($4.16 billion) last year, according to a filing to the Shenzhen Stock Exchange, up 80.7 percent year-on-year from 16.6 billion yuan in 2022, reaching an all-time high.

    BYD’s biggest advantage over competitors is scale, Tu Le, founder and managing director of Sino Auto Insights, told AFP.

    The firm’s high production volume allows them to “aggressively price their vehicles and keep pressure on struggling EV startups and (original equipment manufacturers), including Tesla”, said Le.

    Last year BYD became the first manufacturer to pass the five million milestone in terms of hybrids and all-electric vehicles sold, cumulatively — crowning itself “the world’s leading manufacturer of new energy vehicles”.

    Many foreign automotive giants, including Tesla, BMW, Mercedes and Audi, depend on BYD for their batteries.

    – State backing –

    The firm has long benefited from generous subsidies from Beijing for electric vehicles — support that has angered other governments.

    China has spearheaded a targeted industrial strategy to boost its EV sector, pouring vast state funds into domestic firms as well as research and development.

    Between 2014 and the end of 2022, the Chinese government said it had spent more than 200 billion yuan ($28 billion) on subsidies and tax breaks for EV purchases alone.

    The approach has given Chinese firms a critical edge in the race to provide cheaper, more fuel-efficient EVs over leading US automakers, which have not always enjoyed such state largesse.

    Demand for EVs has soared in recent years in China, which is the world’s biggest emitter of polluting greenhouse gasses.

    BYD, whose investors include US investment titan Warren Buffett, wants electric and hybrid vehicles to lead its sales by 2035.

    That push saw it announce sales of 526,409 all-electric cars in the fourth quarter of 2023 — surpassing Tesla’s 484,507 in the same period.

    Sales have been helped by the fact that BYD’s electric vehicles are cheaper, with its cars selling for less than $30,000 on average, while Tesla’s go for north of $40,000, according to financial magazine Barron’s.

    BYD also sold more than 400,000 plug-in hybrid electric vehicles in the fourth quarter.

    But despite its dominant position in the Chinese market, a number of growing domestic brands, including XPeng, Nio and Geely, are nipping at its heels.

    XPeng said a total of 141,601 vehicles were delivered in 2023, while Nio reached 160,038 — both up from the year before.

    Under intense pressure to outdo each other, China’s automakers are engaging in a price war, especially with consumer spending slowing as the country’s post-pandemic recovery stutters.

    – All electric, with global ambitions –

    BYD ceased production of gasoline-powered vehicles in 2022 and now focuses exclusively on hybrid and electric models.

    It launched a European offensive in 2022 at the Paris Motor Show.

    The company said earlier this year that its future EV factory in Hungary would begin production in three years, making it the first Chinese firm to manufacture passenger cars in Europe.

    That move builds on its existing operations in the central European nation, including an electric bus factory.

    It has said it hopes the factory will “accelerate the entry of new energy passenger vehicles into the European market” as well as deepen its global footprint.

    But not everyone is happy with BYD’s westward expansion.

    Last year, the European Union launched an investigation into Chinese subsidies for its EV sector, saying that Chinese state support has squeezed its own firms in local markets and threatening to impose tariffs in retaliation.

    pfc/reb/sco

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