Honda Slashes Fit EV Lease Price

Honda Motor Co. will reduce the monthly payment on U.S. leases of its electric Fit subcompact hatchback by one-third to $259 on June 1 in an effort to jump-start weak sales and match discounting by rivals.

The company's sweetened three-year lease deal requires no money down and offers unlimited mileage, free routine maintenance, collision coverage and a free 240-volt home charging station. The lower rate also will be applied to previous Fit leases. The car can only be leased, not purchased outright.

Honda has leased only 174 Fit EVs in America since the car debuted with limited distribution last summer. In the January-April period this year, deliveries of electric-only cars by all brands accounted for just 12,000 of the nearly 5 million light vehicles sold in the U.S. That includes 4,750 of EV startup Fisker Automotive's $69,900 Model S sedans delivered in the first quarter.

Honda's mainstream competitors have begun launching cut-rate EV lease deals. In January Nissan introduced a lower-priced version of its electric Leaf compact car, which leases for $199 per month and $1,999 down. Last week General Motors said it will offer a $199-per-month/$999-down lease on its new Chevrolet Spark subcompact EV when it debuts in California and Oregon in June.