2024 GMC Sierra EV Lease May Double Hummer EV’s
If you’re considering leasing a new electric truck, the 2024 GMC Sierra EV might have caught your eye with its sleek design and impressive specs. However, a closer look at the leasing numbers reveals that the monthly payments for the new 2024 GMC Sierra EV could be nearly double that of its cousin, the GMC Hummer EV, despite having very similar starting prices.
Why The Sierra EV Costs So Much More Than The Hummer EV
The 2024 GMC Sierra EV, with a starting MSRP of $99,495, has a shockingly high monthly lease cost of $1,745 over a 36-month term based on 10,000 annual miles and no money down. On the hand the GMC Hummer EV, priced above $98,000 is available, for lease at a more affordable rate of $999 per month without any upfront payment required.
The key reasons behind the lease cost for the 2024 GMC Sierra EV are its residual value of only 53% after 3 years and a high money factor equivalent to an 8.18% interest rate. In comparison the Hummer EV maintains around 76% of its value. Has a lower money factor resulting in an 8.06% interest rate. Although the difference, in interest rates is small the Hummers higher residual value significantly reduces lease expenses by $746 compared to the 2024 GMC Sierra EV.
How Residual Value Plays Its Role In Leasing
The residual value, which is the value of a car, at the conclusion of a lease plays a role in calculating lease expenses. Leasing involves covering the decrease, in value of the vehicle during the lease duration.
With a starting MSRP of $99,495, GMC predicts the 2024 GMC Sierra EV will be worth just $52,000 after a 3-year lease – a massive depreciation of over $46,000. The sharp decrease, in worth plays a role in the $1,745 monthly lease fee for the 2024 GMC Sierra EV as that loss in value is spread out and included in your monthly payment.
Conversely the Hummer EVs impressive 76% retained value means it will hold onto more of its price. This leads to a lease cost despite having a similar initial price compared to the 2024 GMC Sierra EV. The notable contrast in retained values, between these two vehicles is the factor contributing to the Hummers affordable monthly lease payments.
Lack Of Incentives And Tax Credits For 2024 GMC Sierra EV
The high cost of leasing the 2024 GMC Sierra EV is also influenced by the absence of tax credits and other incentives. Typically numerous electric cars qualify for a tax credit of, up to $7500 which usually reduces the lease cost. However, both the 2024 GMC Sierra EV and Hummer EV have starting prices exceeding the $80,000 cap, disqualifying them from this valuable incentive.
Without these credits and incentives to reduce the capitalized cost, the 2024 GMC Sierra EV faces an uphill battle in providing an affordable lease offer. The Hummer EV is of shielded from this situation because of its higher resale value. However the 2024 GMC Sierra EV faces the impact of this absence of discounts through its high monthly payment.
Why You Should And Shouldn’t Lease The GMC Sierra EV
On paper, leasing the 2024 GMC Sierra EV gets you a cutting-edge electric truck loaded with compelling features like a 440-mile range. Leasing offers the advantage of being able to switch to a vehicle every years without committing to a purchase. Many lease agreements also come with maintenance coverage protecting you from repair costs.
However, the financial case for leasing a 2024 GMC Sierra EV is tough to justify. At over $1,700 per month, you’d be paying almost twice as much as leasing GMC‘s flagship Hummer EV. The Sierra’s rapid depreciation, high interest rate, and absence of tax credits make it disproportionately expensive from a leasing perspective.
Buyers interested in a 2024 GMC Sierra EV lease should probably wait to see if GMC offers price reductions or vastly improved lease terms down the line. As it stands now, leasing the new electric Sierra is likely to induce sticker shock rather than excitement over switching to a zero-emissions truck.
There Are Far Better EV Truck Lease Deals Available
The 2024 GMC Sierra EV may be one of the most anticipated new electric trucks, but its lease offering can’t match the compelling value provided by competitors like the Ford F-150 Lightning, Rivian R1T, and even the Chevy Silverado EV as of August 2024:
Ford is offering the F-150 Lightning for just $452 per month with $0 down thanks to a massive $9500 rebate. That’s a great deal for a truck with a $56,900 MSRP.
Rivian’s R1T can be leased for as low as $559 monthly, also factoring in the $7500 federal tax credit. Rivian’s off-road beast starts at $69,900.
While not as cheap as Ford or Rivian, the Silverado EV’s $1,554 monthly lease with around $4,000 down looks downright reasonable compared to the 2024 GMC Sierra EV’s $1,745.
Budding electric truck fans have some great affordable lease options to pick from, but the 2024 GMC Sierra EV unfortunately isn’t one of them at this point in time. Hopefully GMC finds a way to build more value into the Sierra’s lease so it can be as popular as the truck itself is impressive. For now, the 2024 GMC Sierra EV remains a stellar choice for a purchased electric truck, but leasing one is likely to leave your wallet feeling zapped.
