EV Leases In 2025:
EV Leases In 2025: Deals, Incentives and Tips
Get insights on the best lease deals and incentives. Learn why now is the perfect time to go electric.
Leasing electric vehicles is gaining momentum as a smart and flexible choice. Affordable options are expanding as EV technology improves and adoption grows.
Excluding direct-to-consumer brands like Tesla, nearly 80% of new EVs purchased at dealerships are now leased, up from just 16% in 2023 and far above the industry average of 20%.
This surge is partly fueled by the game-changing "leasing loophole". For the federal tax credit of up to $7,500, leasing companies can bypass the strict criteria applied to consumer-purchased EVs. These savings are often passed to consumers, making leasing highly attractive and affordable.
Leasing provides access to cutting-edge EV technology without requiring a long-term commitment. Affordable deals and lower maintenance and fuel costs make EV leasing ideal for frequent upgraders or people looking to explore the electric lifestyle cost-effectively.
With potential changes to federal EV incentives and the possible closure of the "leasing loophole," now is the ideal time to lease an EV and enjoy the benefits of driving electric.
Why Lease an EV?
Leasing an EV is a smart choice for those who want the perks of electric driving without the long-term financial commitment. It provides flexibility and the chance to drive a modern, high-tech vehicle.
Great for First-Time EV Drivers
Leasing is a low-risk way to explore different EV models before committing to ownership.
Flexible Leasing Options
Leasing an EV can offer shorter terms, lower monthly payments, and easy upgrades to the latest EV models.
Access to the Latest Technology
Leasing offers greater access to upgraded models including the latest safety features, better battery ranges, and modern in-car technology.
Looking to Save Money on an EV in 2025?
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The Advantages of EVs
Leasing an EV also allows you to experience the many advantages of driving electric.
Cleaner Driving
Electric vehicles are cleaner than gas-powered vehicles across their entire lifecycle in every state.
Lower Maintenance Costs
EVs have far fewer parts than traditional gas cars and require no oil changes, leading to about 50% lower maintenance costs.
Fuel Savings
Fuel costs for an EV (EV charging) are much cheaper than gasoline costs per mile in every state. On average, EV drivers save around 60% on fuel costs. Check out savings per mile and per trip in your state here.
Imagine never having to visit a gas station again, or needing an oil change again or worrying about unpredictable gas prices. With an electric vehicle, this could be your reality—while potentially saving thousands of dollars a year.
Curious how much you could save switching to an EV? Try our nonprofit’s EV Cost Savings Index and see how affordable driving electric can be for you!
How To Find The Best EV Lease Deals for 2025
Electric vehicle lease deals are more competitive than ever. Many manufacturers and dealerships offer record-low rates, substantial tax credits, and unique incentives like loyalty bonuses and cash-back offers.
Popular models are priced to attract both new and seasoned EV drivers.
Several websites can help you find the perfect EV lease to match your needs.
When starting your search, it’s a good idea to browse several platforms to compare lease offers, incentives, and vehicle options. This approach increases your chances of securing the best deal and finding the EV lease that perfectly fits your budget and lifestyle.
💡 Pro Tip: Lease terms and offers vary by region. Always verify details with local dealerships for the most accurate pricing. Also, check our EV leasing tips below to learn how to dive into the details of EV leases beyond the sticker price.
Here are a few of the top websites to explore for the best EV lease deals available as of January 2024:
Top Resources for EV Lease Deals
1. TrueCar
TrueCar provides comprehensive lease and financing options for a wide range of EV models. Current deals include the Hyundai Ioniq 5 at $280/month and the Volkswagen ID.4 at just $185/month. The platform highlights vehicles with 0% APR financing, such as the Kia EV6 and Ford Mustang Mach-E, and cash incentives up to $7,500. With these tools, TrueCar makes it easy to compare deals, explore savings, and negotiate effectively with dealerships.
2. Electrek
Electrek’s EV Lease Guide provides regularly updated information on the best EV lease deals across the U.S., focusing on affordability and flexibility. It highlights current offers from manufacturers and dealers, including competitive leases for popular models like the Ford Mustang Mach-E (starting at $249/month) and the Hyundai Ioniq 5 (starting at $159/month). The site also emphasizes special incentives like Costco member discounts and regional-specific savings, making it an essential resource for budget-conscious EV shoppers.
3. InsideEVs
InsideEVs offers comprehensive information on EV and hybrid lease and financing deals. Its monthly updates feature affordable leases, such as the Kia Niro EV at $149/month and record-low rates for vehicles like the Ford F-150 Lightning. Additionally, the site provides detailed insights on state-specific incentives, making it a go-to resource for discovering localized offers tailored to your area.
4. CarsDirect
CarsDirect highlights top EV lease deals like the Nissan LEAF at $129/month and the Hyundai Ioniq 6 at $159/month. The platform also showcases bonuses such as free home chargers, loyalty discounts, and conquest offers, helping EV shoppers discover the best deals for their budget. Additionally, CarsDirect excels at identifying promotions that stack incentives, allowing buyers to maximize their savings.
Explore electric car lease deals to find the best options that fit your budget and lifestyle.
Federal EV Leasing Incentives: What You Need to Know
Federal EV tax credits, up to $7,500 for new EVs and $4,000 for used ones, play a key role in keeping EV leasing affordable in 2024 and could still be available through 2025.
While consumers leasing an EV cannot claim the tax credit directly, leasing companies can. They often pass these savings on to you in the form of reduced lease payments.
How It Works
Under IRS regulations, leased EVs are classified as "commercial vehicles." This allows the leasing company—often the automaker’s finance division—to claim the full tax credit. Unlike credits for purchased EVs, leasing benefits are not subject to:
- Assembly location requirements
- Battery sourcing rules
- Vehicle pricing caps
- Income limits for buyers
What to Ask Before Leasing
Does the EV qualify for the credit?
Confirm vehicle eligibility with the leasing company.
Are savings passed to you?
Leasing companies aren’t legally required to pass on savings. It’s best to confirm how credits affect your lease.
Some companies explicitly advertise these savings with phrases such as “EV Lease Bonus” or “Hybrid/Electric Federal Tax Credit.”
Is the Federal Tax Credit Going Away?
Federal EV tax credits could be subject to potential policy changes. Act quickly to lock in this benefit.
State-Level EV Incentives
State incentives often stack with federal credits, lowering EV lease costs further.
Be sure to check:
- Availability of Funds: Some programs may run out of funding, so act quickly.
- Income Limits: Check if your income qualifies for the incentive.
- Vehicle Requirements: Ensure your EV meets all eligibility criteria.
- Application Deadlines: Submit your application within the required timeframe, often 90-120 days after purchase or lease.
- Lease Terms: for example, some incentives apply only to leases of at least 24 or 36 months.
- Tax Implications: Determine whether the incentive counts as taxable income.
- Additional Incentives: Beyond the incentives below, explore other state, regional, city or utility company programs for extra financial benefits. Many states offer additional EV leasing incentives, which can further reduce your costs. Often, they stack on top of the federal credit that the leasing company receives.
First explore state-specific programs here and then check on the government or utility company site to see if the program is running and if you/your EV qualifies.
Our EV Incentives checklist can help further. You can see if your state has a cash for clunkers program to trade in old, polluting vehicles. If you are in California, you can also check EV Incentives in California.
EV Lease Incentives By State
Here is a noncomprehensive list of states where you might find EV incentives for leasing:
California
Clean Cars 4 All provides income-eligible residents in select air districts up to $12,000 to replace older polluting vehicles with cleaner options, including electric vehicles, hybrids, or e-bikes. In 2024, it expanded statewide under the Driving Clean Assistance Program (DCAP).
Colorado
Colorado Energy Office EV Tax Credits: Colorado offers state tax credits for the purchase or lease of new electric vehicles, including battery electric and plug-in hybrid models, with credits of $5,000 for vehicles priced up to $80,000 and $2,500 for vehicles priced up to $35,000. Lease agreements must be at least two years, and some dealerships allow the tax credit to be applied as a point-of-sale discount.
Connecticut
Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR): This program offers rebates for purchasing or leasing new or used electric vehicles with an MSRP under $50,000. Starting January 1, 2025, rebate amounts will include up to $1,500 for standard BEV purchases or leases, with additional Rebate+ incentives of up to $4,500 for new vehicles and $5,000 for used vehicles for income-eligible residents.
Delaware
Delaware Clean Vehicle Rebate Program: This program offers cash rebates of up to $2,500 for purchasing or leasing new or used battery electric or plug-in hybrid vehicles, with applications required within 90 days of purchase.
Maine
Efficiency Maine EV Rebates: Efficiency Maine offers EV incentives for low-income Mainers, with up to $7,500 for new BEVs, $3,000 for PHEVs, and $2,500 for used EVs. Eligibility requires income verification through programs like HEAP or SNAP, and vehicles must meet price limits ($55,000 for cars, $80,000 for trucks/vans). Leases must be at least 36 months. Rebates are available as instant discounts or via a claim process.
New Jersey
New Jersey's Clean Energy Program: Charge Up New Jersey offers up to $4,000 for leasing or purchasing new EVs and $250 for Level 2 chargers, with applications processed on a first-come basis. It may be possible to claim savings directly at dealerships or through prequalification for income-based incentives.
Rhode Island
Rhode Island DRIVE EV and PowerUpRI Programs: Residents can receive up to $1,500 for new EVs, with additional rebates for income-eligible applicants or used vehicles. The PowerUpRI program offers up to $1,000 for installing residential EV chargers, depending on income and installation needs.
*Disclaimer: This is not a substitute for financial or tax advice nor is it necessarily up to date. Note that incentives do change periodically and can run out of funds.
Act Quickly: EV Incentives May Be Time-Sensitive
To lock in these financial benefits, consider leasing an EV now before any modifications to EV programs take effect.
If federal EV credits end, these incentives could disappear, though state, local, or utility rebates might still apply. But again, state incentives change regularly and can run out of funds.
Don’t wait—act now to take advantage of current EV leasing incentives. Explore state-specific EV incentives here.
Is It Better to Lease or Buy an Electric Vehicle?
Leasing an EV can offer flexibility, lower upfront costs, and wider access to the $7,500 federal tax credit, making it ideal for first-time buyers or those who like to frequently upgrade.
Buying allows for equity building, avoids lease restrictions such as mileage limits, and long-term savings after the car is paid off.
Deciding between leasing and buying an electric vehicle (EV) ultimately depends on your personal circumstances, priorities and driving habits
Here’s a breakdown of some key points to consider:
The Benefits of Leasing an EV
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Broader Access to Federal Tax Incentives
- While a number of new and used vehicles qualify, many more EVs and individuals can benefit from the $7,500 federal tax credit via the "leasing loophole".
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Potentially Reduced Upfront Costs and Lower Monthly Payments
- Leasing usually requires less money upfront compared to buying and payments are typically lower than financing payments.
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Protection Against Depreciation
- If automakers lower EV prices, lessees are not affected, unlike buyers who may experience significant depreciation.
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Flexibility to Upgrade
- Leasing lets drivers upgrade to new EV models regularly as technology advances.
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Ideal for First-Time EV Buyers
- Leasing offers a low-risk way to "test the waters" with an EV before committing to long-term ownership.
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No Long-Term Maintenance Responsibility
- At lease-end, you return the vehicle without worrying about maintenance or battery degradation.
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Potentially Predictable Costs
- Leases can include bundled maintenance packages, GAP insurance, and other services, providing clearer cost expectations.
The Benefits of Buying an EV
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For Big Drivers, No Mileage Limits
- Lease agreements typically impose annual mileage caps (e.g., 10,000–12,000 miles/year). Exceeding these limits can incur costly fees. Buying an EV gives you the freedom to drive as many miles as you want. In fact, the more you drive, the more you save on fuel vs a gas car!
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Long-Term (and potentially immediate!) Cost Savings
- Owning a vehicle for many years eliminates monthly payments after the loan is paid off. It frees buyers from the cycle of continuous lease payments for new vehicles.
- If you’re a big driver/using lots of gasoline, the savings of buying an EV can be immediate – starting from the first day you stop shelling out money for gasoline and maintenance. For instance, if you were spending $900/month on gas, the savings on buying an EV may well be more than that – even including your monthly EV car payments!
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Ownership Equity
- Buyers build equity in the vehicle, which can later be sold or traded in.
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Freedom from Restrictions
- No penalties for excessive wear, mileage overages, or unauthorized vehicle modifications.
- Breaking a lease early can result in substantial financial penalties.
- Leasing companies can also require full coverage insurance, which can be more expensive than basic coverage for owned vehicles.
-
Personal Satisfaction
- Some people prefer owning their vehicle outright.
Leasing Tips and Considerations
When leasing an EV, keep these tips in mind:
1. Understand Lease Costs Beyond Monthly Payments
- Review all costs: Include down payments, taxes, fees, and any bundled options like insurance or maintenance. Bundled packages may simplify budgeting or provide added value.
- Check residual value: A higher residual value lowers monthly payments but may increase the buyout cost. Compare to market trends for fairness.
- Be cautious of low advertised rates that exclude significant upfront or hidden charges or exclusions.
- Compare total lease costs: Assess affordability over the full lease term. Check to see if lease payments go up at any point during the lease.
- Consider checking Leasehackr: This is a community-driven platform for car leasing and financial literacy, offering a discussion forum, lease calculator, pre-negotiated deals. A crowdsourced database of real-world contracts can help users compare and secure better deals.
2. Evaluate Mileage Allowances Carefully
- Confirm the lease mileage cap (typically 10,000–12,000 miles/year).
- Estimate your driving habits to avoid expensive overage fees.
- If close to the cap, paying for extra miles upfront may be more cost-effective.
3. Leverage the Federal EV Tax Credit
- Leasing allows lessees to indirectly benefit from the $7,500 federal tax credit.
- Confirm with the dealer how the tax credit is applied to lower your lease cost.
- Check if state or local incentives can further reduce costs.
4. Consider Future Upgrades
- Leasing offers the opportunity to upgrade to newer EV models as technology advances. Opting for shorter lease terms (e.g. 24–36 months) can help you stay updated with innovations.
- Keep in mind that leases are typically inflexible, and breaking a lease early can incur significant costs.
5. Evaluate Lease Buyout Options
- Review the buyout price in the contract and compare it to the vehicle's projected market value.
- This option may be advantageous if EV demand or resale value is strong at lease-end.
6. Warranty, Insurance and Maintenance Coverage
- Check to see if the lease includes bumper-to-bumper warranty coverage for repairs.
- Confirm if maintenance packages or GAP insurance are included to minimize unexpected costs.
7. Understand Wear-and-Tear Guidelines
- Understand wear-and-tear terms to avoid lease penalties.
- Maintain the vehicle and document its condition during the lease.
8. Plan for Charging Needs
- Assess the availability of home charging and public charging stations.
- Home EV charging is more convenient and affordable than public charging.
By following these tips, you can ensure a cost-effective EV leasing experience that aligns with your driving habits and financial goals.
Conclusion: Drive Into the Future with an EV Lease
Leasing an electric vehicle in 2024 offers an opportunity to experience cutting-edge technology, lower costs, and flexible options while contributing to a cleaner future.
With federal tax incentives, affordable lease deals, and state-level programs sweetening the pot, leasing has become an attractive gateway into the electric lifestyle. Whether you’re a first-time EV driver or a seasoned enthusiast, leasing allows you to enjoy the benefits of electric driving without long-term commitment.
As federal incentives and policies may shift, there’s no better time to act. Take advantage of today’s deals and incentives to explore the exciting possibilities of driving electric.
Ready to Make the Switch?
Use tools like our nonprofit’s EV Cost Savings Index and EV Roadmap to make an informed decision and find the perfect EV lease for your needs. Let’s drive toward a cleaner, more sustainable future—one EV lease at a time.
Leasing An EV FAQ
Are EV Leases Worth It?
EV leases are worth it for drivers seeking lower upfront costs, flexibility, and access to the latest technology. They allow you to benefit from the $7,500 federal tax credit, avoid depreciation risks, and easily upgrade to newer models every few years.
Do Leases Count for the EV Tax Credit?
Yes, leased EVs qualify for the $7,500 federal EV tax credit. The leasing company, classified as the vehicle owner, claims the credit and often passes the financial benefits on to consumers through reduced monthly payments.
What Is the "Leasing Loophole"?
The "leasing loophole" allows leased EVs to qualify as commercial vehicles under IRS regulations, making them eligible for the full $7,500 federal tax credit. Unlike purchased EVs, leased vehicles bypass restrictions like assembly location, battery sourcing rules, pricing caps, and income limits. Leasing companies often pass these savings on to consumers through reduced monthly payments.
Are There Additional State-Level Incentives for Leasing EVs?
Yes, many states offer additional incentives, such as cash rebates, tax credits, or point-of-sale discounts. Programs vary by location and may include income limits, vehicle requirements, or lease term minimums. Check here first and then check your state’s webpage on EV incentive programs for specific details.
What Are the Benefits of Leasing an EV?
Leasing offers:
- Flexibility to upgrade every few years.
- Access to the latest EV technology.
- Protection from depreciation risks.
- Broader indirect benefit from the $7,500 federal tax credit.
Is It Cheaper to Lease an EV?
Leasing an EV is typically cheaper upfront and monthly compared to purchasing. Lease payments usually only cover the vehicle’s depreciation, and the federal tax credit is often applied to reduce costs further. However, total costs depend on factors like mileage limits and lease terms.
How Do I Find the Best EV Lease Deals?
To secure the best lease deal:
- Compare offers from multiple dealerships.
- Use resources like Electrek, InsideEVs, TrueCar and CarsDirect for updated EV lease guides.
- Consider checking Leasehackr for more information from a community-driven platform on leases.
- Look for regional and manufacturer-specific deals, including Costco incentives and loyalty discounts.
- Verify offers directly with dealerships to ensure accuracy.
Can You Lease A Used EV?
Yes, you can lease a used EV, but there are some key considerations:
- You may still qualify for a federal tax credit of up to $4,000 under the IRA.
- Check the battery’s health carefully, as wear and tear from previous use may reduce range or lead to costly repairs, especially for vehicles with over 100,000 miles. Some older EVs may also lack compatibility with newer charging networks and connectors.
- Visit our Used Electric Car Guide for more information.
What Happens at the End of an EV Lease?
At lease-end, you can:
- Return the car to the dealership.
- Purchase the car for the residual value stated in your lease agreement.
- Lease or buy a new EV to stay updated with advancements.
Why Is Now a Good Time to Lease an EV?
With federal incentives and competitive lease deals available in 2024, leasing an EV is more affordable than ever. However, potential changes to incentives and the "leasing loophole" may affect future costs. Acting now ensures you benefit from the current favorable conditions.
Why Is Leasing an EV a No-Brainer?
Leasing an EV offers lower upfront costs, affordable monthly payments, and flexibility to upgrade to newer models as technology advances. Additionally, leased EVs can qualify for the $7,500 federal tax credit via the "leasing loophole", making it a cost-effective way to drive electric without a long-term commitment.