If you are a loyal fan of this blog, you know I am 100% committed into leasing a car for life.
And so are my clients.
There is one big exception. And that is hybrid and all-electric cars. They are THE WORST!!!
It is one of the biggest hustles in the car-selling industry. (The second-biggest hustle are run-flat tires… stay tuned for a post about that.)
We are quickly moving away from gas-powered cars and into all-electric cars:
Car manufacturers boast about all-electric car batteries with 80,000 or even 100,000-mile warranties.
This sounds absolutely fantastic, but it is one big whopper of a magic trick.
It is an illusion. Because car manufacturer warranties only cover hybrid and all-electric batteries when they fail completely. That is, they permanently drain to 0%…
This (almost) never happens.
Because once the batteries lose about 50% of their normal capacity, the car is effectively dead. And since it is (almost) impossible to have a battery register a 0%… it is all but impossible to submit a warranty claim!!!
Pretty cool hustle, eh?
Yet, we only find out about this once we get into a hybrid or all-electric car. And by then, it is too late – we are heading deep into their scam.
Hybrid and all-electric cars often lose their effective charge after 3 years or so. It is like our smartphone batteries. They slowly lose power as it recharges. And about 3 years in, these batteries are toast. Fuel efficiency plummets. And the battery no longer has the power it once had. (This is especially true if we drive a lot of hills or live in extremely hot or cold locations.)
When battery capacity drops below 50%, it can leave drivers stranded on the side of the road.
To add insult to injury, these drivers pay to tow their cars to the dealership – only to be told their battery “passed the test” and is not covered under warranty. Nice:<
Owners are forced into replacing these batteries on their own dime.
And these batteries are super expensive… at least $2,500.00 to replace (some higher than $5,000.00).
The worst part is the market value of hybrid and all-electric vehicles PLUMMET after 3 years. This makes it all but impossible to flip our end-of-lease car for a profit.
Leasing companies are taking a bath on end-of-lease cars… forced to sell at auction at serious discounts.
It will be interesting to see how this all plays out in the future as every manufacturer is committed to all-electric cars in the next few years.
But for me, I will only get a gas-powered car for my next lease.
I see one of your clients used your system to get a heck of a deal for the Hyundai Ioniq? I know you don’t like electric cars, but do you like the Ioniq. If not, do you have any other recommendations?
Any time I am looking into getting a certain car, I track down a forum. Here is one for the Ioniq.
Right now, the only auto manufacturer I trust with this new electric technology is Volvo. And they are all in on electrifying their entire fleet of new vehicles soon.
The Hyundai Ioniq is more than half the price of a similar Volvo. And if I was looking purely at saving money (and getting over 60 m.p.g.), the Ioniq would fit the bill for me.
Of course, Tesla’s entire fleet of vehicles is electric. But, their cars are HIGHLY unreliable (terrible build quality). And Tesla vehicles are HIGHLY expensive (they never discount the price of their vehicles).
Is it better to get a plugin hybrid (not even sure what it means)?
Conventional hybrid vehicles travel short distances in pure-electric mode. A plug-in hybrid (one in which we recharge the battery with a plug connected to a source of electricity) travels extended distances with little or no help from the gasoline engine. Even before the charge is depleted, the gasoline engine… a.k.a. an internal combustion engine (ICE)… may be called on to provide extra power for recharging the battery, accelerating, passing, and merging.
In simple speak, a plug-in hybrid (a.k.a. PHEV) is designed to travel further than a conventional, non-plug-in hybrid. So, if I was driving a lot and did not enjoy the “plugging in” hassles, I would choose a conventional hybrid.
There is also the cost factor. For example, the Hyundai Ioniq plugin is more than $2,000.00 more expensive than a similar conventional hybrid.
I am not a fan of electric cars because the technology remains unreliable. We can see this with our smartphones. Battery advancements lag (while computing power seems to double every year).
So, which is better: a conventional or plugin-hybrid? I would choose a conventional hybrid. Because remembering to plug in is a hassle. And for me, it is not worth saving a few extra miles to the gallon (and paying thousands in extra cost).