Electric car lease deals offered to spur sales

Starting Saturday, Honda is cutting the monthly cost Starting Saturday, Honda is cutting the monthly cost of existing leases on its FIT EV from $389 to $259. Electric car sales are growing but are still a fraction of overall U.S. auto sales. (Nov. 17, 2010) Photo Credit: AP

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Auto companies are hoping lower lease prices can put a charge into sluggish sales of electric cars.

Honda announced yesterday that it's slashing the monthly lease cost of its tiny Fit EV by one third, following similar moves by other automakers. Honda also is throwing in other goodies, such as a free home charging station and unlimited mileage.

Electric vehicles once were billed as the answer to high gas prices and dependence on foreign oil. But U.S. oil production is rising, gas supplies are abundant and pump prices have remained relatively stable the past three years, making consumers reluctant to switch. There's also the worry that an electric car could run out of juice on longer trips.

As a result, electric car sales, while growing, are only a tiny fraction of overall U.S. auto sales. Automakers sold just over 12,000 pure-electric vehicles in the United States through April, according to Ward's AutoInfoBank and Tesla Motors. That's less than 1 percent of the 4.97 million cars and trucks sold during the same period.

On Long Island, there were just 522 electric cars in 2011 out of a total of 2,569,978 vehicles registered here, according to an auto census by R.L. Polk & Co.

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Automakers generally lose money on electric cars. But they have been subsidizing sales by lowering prices. Chrysler CEO Sergio Marchionne said earlier this year that his company will lose $10,000 on every Fiat 500 electric vehicle it sells. Others have reported similar losses.

With the Fit EV, Honda is offering a $259-per-month lease, down $130 from the initial $389 per month offer when the car went on sale last July.

The reduced lease price starts Saturday and will apply to existing EV leases, Honda said.

The three-year lease requires no money down and comes with free routine maintenance, collision insurance coverage and a free 240-volt home charging station, the company said yesterday. The car buyer must take care of installation.

With Tom Incantalupo

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