Recently I took my wife shopping for a new car, to replace her 2017 Audi Q5. After researching similar new models, she decided to test drive a Genesis GV70. After negotiating the price, the salesman estimated the monthly payments at $1,061 if 100% financed, as we typically recommend. He confided that if we leased the electric version (EV) rather than purchasing, the monthly payment would drop to only $693 under a 36-month lease. That’s a payment savings of $368 a month or $4,416 a year, reducing her investment in the car by almost 35%. We could invest the extra $4,416 to earn higher returns elsewhere.

Why the substantial savings? Over the past two years, automakers have rolled out dozens of new electric models. Unfortunately demand has lagged. leading to an EV inventory glut. That’s resulted in an array of discounts and other promotions, including cheaper lease deals to get the cars off the dealers’ lot.