Leasing an EV

When leasing an EV, you can reap the benefits of the federal EV tax credit. You'll also have more EV models to choose from: Many EVs that don't qualify for the federal tax credit when the car is purchased do indeed qualify for the credit when leased through a commercial financing company.

Not all leasing companies will apply the federal EV tax credit to your lease agreement. If they don't, then you can't claim the credit yourself. That's because the leasing company owns the vehicle and is the only entity eligible to claim a federal tax credit. Check with your dealer to verify a lease will include the value of the tax credit. And before you sign the paperwork, make sure the dealership hasn't unreasonably marked up the sale price to compensate for the savings.

Lease deals change monthly, and eligibility may vary by state or region. We recommend checking automaker websites for current offers. Dealership staff can also provide customized lease quotes for specific vehicles.

Check out the available state and utility incentives to see whether you can further reduce your leasing costs. Typically the lease term must be at least 2 years. Additional eligibility requirements may apply, so don't skip the fine print. Some participating dealers can apply the incentives at the time of sale, further reducing your down payment or monthly bills.

The plug-in EV market is rapidly growing as more models are introduced, battery range increases, and technology improves. In some cases, that can cause high depreciation for new EV purchases. Incentives on new vehicles can also impact EV market values. Leasing allows drivers to try out an EV for a few years without the risk of depreciation as the market evolves.

In most cases, when you lease a vehicle for 2 to 3 years, any major maintenance issues are covered under manufacturer warranties.

Everything is negotiable. If you do your research ahead of time, you can negotiate with confidence. Ask questions and don't be embarrassed to request information in writing.