Our advice to lease EVs, not buy them is apparently being taken to heart by most EV shoppers who favor Hyundai. But what about the “First owner” part of the warranty terms?
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The overwhelming majority of Hyundai electric vehicles are leased, not purchased outright by their first owner. We communicated with Randy Parker, CEO, of Hyundai Motor America, who told us, “As the interest for EVs continues to evolve, Hyundai is utilizing the tax credit for EV leases to support customers interested in making the transition to a zero-emissions vehicle.” So just how many new Hyundai EVs end us driving off the lot as leases rather than purchases? “Currently, about 80% of our Hyundai EV deliveries are leased,” said Mr. Parker. “Tax credit eligibility for leases allows us to provide consumers with more attractive Hyundai EV lease offers by fully passing on the credit. And we look forward to qualifying for some portion of the purchase credit when 2025 model year IONIQ 5’s hit dealerships later this year.”
Background Story: Five Reasons Leasing a New EV Makes More Sense Than Buying
Hyundai’s Amazing Warranty - And How It Apples to Leased Vehicles
One reason we praise Hyundai vehicles so loudly in our brand coverage and in reviews is that the company offers the best warranty in America. While other companies offer a warranty ending at as little as four or five years, Hyundai’s warranty spans a full ten years or 100,000 miles. However, there is an asterisk next to the 10/100 part of the warranty. It only applies to the original owner of the vehicle. So, how does that work if the vehicle is leased and at the end of the lease the person buys out the lease to keep the car? The actual first owner is the leasing company.
We spoke to Michele Tinson, our daily contact at Hyundai, for clarification. Without hesitation, she answered by saying, “Original Owner is defined as the first retail purchaser of the vehicle who took delivery of the vehicle on its date of first use. If the vehicle was first placed in service as a lease vehicle, and the lessee purchased the vehicle at the end of the lease, the 10 years/100,000 miles Powertrain Limited Warranty remains in effect.” So, to be clear, an original lessee can start off with a lease, then buy the vehicle from Hyundai at the lease end, and still enjoy the entire duration of the amazing warranty.
Hyundai is one of the leading electrified vehicle brands in America. Not only is Hyundai vying for second place in battery-only vehicle deliveries, but the brand has also been the alternate of choice to Toyota for hybrid-electric vehicles in America for some time. Add in the company’s plug-in hybrid-electric and hydrogen-fuel-cell electric vehicles, and Hyundai is easy to call one of the most diverse green vehicle manufacturers in our market.
Read our review of the 2025 Hyundai Ioniq 5N here.
Hyundai is offering EV buyers a very convenient way to hedge against depreciation by offering amazing lease deals. This is true of many brands, but Hyundai’s Ioniq 5 deals seem to be very generous. If the vehicle value is much lower than the lease buy out, turn it in. If the value is fair and you like the vehicle, you can opt to purchase it. In the unlikely event we have another market disruption and supply is again constrained driving up used vehicle prices, you can buy and then sell at a profit. Leasing offers a Hyundai shopper every conceivable option to win the hand they are dealt. And since the full warranty applies to lease buy-outs, a Hyundai owner has peace of mind.
Our thanks to Hyundai for being so responsive and offering clarification on this topic.
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John Goreham is a credentialed New England Motor Press Association member and expert vehicle tester. John completed an engineering program with a focus on electric vehicles, followed by two decades of work in high-tech, biopharma, and the automotive supply chain before becoming a news contributor. He is a member of the Society of Automotive Engineers (SAE Intl.). In addition to his eleven years of work at Torque News, John has published thousands of articles and reviews at American news outlets. He is known for offering unfiltered opinions on vehicle topics. You can connect with John on Linkedin and follow his work on our X channel. Please note that stories carrying John's by-line are never AI-generated, but he does employ Grammarly grammar and punctuation software when proofreading.
Image of new Hyundai owner by John Goreham.
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