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 other hand, the GMC Hummer EV, priced above $98,000, is available for lease at a more affordable rate of $999 per month with no upfront payment required.

The key reasons behind the higher 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 and has a lower money factor, resulting in an 8.06% interest rate. Although the difference in interest rates is small, the Hummer's 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 term.

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 depreciation of over $46,000. This sharp decrease in worth plays a role in the $1,745 monthly lease fee for the 2024 GMC Sierra EV, since that loss in value is spread out and included in the monthly payment.

Conversely, the Hummer EV's impressive 76% retained value means it holds onto more of its price. This leads to a lower lease cost despite a similar initial price compared to the 2024 GMC Sierra EV. The notable contrast in retained value between these two vehicles is the main factor behind the Hummer's more 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 $7,500, 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 offering an affordable lease. The Hummer EV is somewhat shielded from this issue because of its higher resale value, while the Sierra EV feels the full impact of missing out on these discounts through its higher monthly payment.

Why You Should And Shouldn’t Lease The GMC Sierra EV

On paper, leasing the 2024 GMC Sierra EV gets you an advanced electric truck loaded with compelling features like a 440-mile range. Leasing also offers the advantage of switching vehicles every few years without committing to a purchase. Many lease agreements come with maintenance coverage that protects against 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.