How to Take Advantage of the EV Car Leasing Hack

The “EV car leasing hack” typically refers to how a buyer can get an electric vehicle (EV) at a more affordable price by leveraging federal and state tax incentives, manufacturer discounts, and unique leasing arrangements. Read on to learn more.

Federal EV Tax Credit Applied to Leases

• How It Works: The federal tax credit for EVs (up to $7,500 in the U.S.) is available to manufacturers when the vehicle is leased. Since the leasing company, not the individual, owns the car, they receive the credit.
• The Hack: Many leasing companies pass this savings on to the lessee in the form of lower monthly payments, effectively reducing the cost of the lease.

State Incentives for EVs

• Some states offer additional rebates or tax incentives for EVs. When leasing, these incentives may also be applied, further reducing the cost. For example, states like California and New Jersey provide significant rebates that can be applied to leases.

Manufacturer Incentives

• EV manufacturers often showcase special discounts or lease deals to promote their vehicles, especially for models they want to sell quickly. Combining these with federal and state incentives can result in a very low monthly payment.

Short-Term Leasing Benefits

• Leasing for 2–3 years allows you to benefit from the latest EV technology without worrying about depreciation or battery wear.

Avoiding the Cap on Federal Credits

• Some manufacturers, like Tesla and GM, previously hit the cap for federal EV tax credits. However, with leasing, the credit may still apply regardless of the manufacturer’s cap status because the leasing company claims the credit.

Example of Savings:

• Suppose you lease an EV with a retail price of $40,000.
  • The leasing company applies the $7,500 federal credit to your lease.
  • A state rebate of $2,000 further lowers the cost.
  • Manufacturer incentives of $1,500 apply as well.
  • This could translate into $11,000+ in savings, significantly lowering monthly lease payments.

Tips to Maximize the Hack

1. Shop Around for Leases: Compare offers from different dealerships and leasing companies.
2. Ask About Incentive Pass-Through: Ensure the leasing company applies the federal credit and any state incentives to your lease.
3. Monitor Manufacturer Deals: Look out for promotions, especially toward the end of the year or quarter.
4. Stack State and Local Incentives: Many local utilities and municipalities offer additional rebates for EVs.
   
   
   

THE TAKEAWAY

The EV leasing hack is available now but the new Congress in 2025 may modify or eliminate this federal credit. Keep that in mind as you are you shopping.

Sources: EV Car Answers Editors, ChatGPT, Nissan