- The $7,500 federal EV tax credit expires on Wednesday, and it probably won’t come back.
- It’s the reason why EV leases are so cheap, so if you want an affordable EV, you should act soon.
- There are great deals on both mainstream and luxury EVs, you just have to know where to look.
The time has come. Later this coming week, the federal clean vehicle tax credit will disappear, and many of the “I can’t believe this price” lease deals will go with it. But it’s not gone yet, and you can still get a truly absurd price. Here’s how to do it.
While the $7,500 EV tax credit expires on Sept. 30, it is possible that many automakers might continue to eat those costs themselves and continue to offer aggressive deals through the year. But long-term, there’s no guarantee of that. This is a great weekend to go EV-shopping—perhaps the last great one for a while.
First off, at this point, you’re going to be fighting with a lot of other customers for a rapidly shrinking supply of cars. That’s why I’d suggest striking a deal this weekend; most dealers are good enough at inventory management that they’ll be running low by Tuesday. Second, I’d skip the “let me talk to the manager” step by just browsing on a leasing forum or using a car broker. At this point, it’s more about knowing who has excess inventory than squeezing the finance manager, so this can kill two birds with one stone.
I jumped on Leasehackr this morning to scour for deals, and I’m shocked by what I’m seeing.
While Leasehackr is not the only lease deal forum, and I haven’t used a broker myself, it seems to be the one with the most consistently eye-popping deals. Here are a few that caught my eye. But note that lease deals in general are region-specific, and I’m looking in California, where inventory is plentiful and deals tend to be great.
The Deal King: Hyundai Ioniq 5
Hyundai dealers are offering crazy deals on new Ioniq 5s.
Photo by: InsideEVs
Part of why you see so many more Hyundai Ioniq 5s than Kia EV6s is that Hyundai has long offered much more aggressive lease deals. As the cheap-lease free-for-all ends, the Ioniq 5 still reigns. I saw this one advertised for $157 a month for 36 months, with $3,000 due at signing (I’m not including specific broker information because I can’t speak to the quality of different brokers, and deals are changing rapidly).
That adds up $8,495 over the life of the lease (the first payment is included), meaning your net effective payment is $235 a month. That’s for a car with a native Tesla-style NACS port, faster charging speeds than anything else remotely affordable and 318 miles of range. That’s all the EV most people need, at a price that’s hard to argue with.
The Luxury Play: Pick Your Poison
BMW and Mercedes have both been trying to clear out EV inventory. You can get great deals on EVs from both brands. The BMW i4 is one of my favorite EVs, and I’ve seen deals advertising 36-month leases for $399 a month for 36 months with $3,000 due at signing. If you must have a crossover, you can get an ex-loaner Mercedes EQE SUV for as little as $399 a month for 36 months with $3,5000 due at signing. That’s a helluva deal for something with an MSRP of $80,000.
But there is a catch with these luxury-brand leases. For EV deals, Mercedes, BMW and Audi seem to be advertising ultra-low-mileage leases that only give you 7,500 miles per year. Since the average American drives over 12,000 miles a year, make sure that’s not a dealbreaker.
Cadillac incentivized leases tend to come with 10,000 miles a year, which is much more reasonable. If you’re interested—and based on our experiences, you should be—you can get an Optiq or a Lyriq for under $400 a month with about $3,500 down. But that’s a two-year lease, so the down payment stings a little harder.
Affordable Alternatives
Photo by: Mack Hogan/InsideEVs
Photo by: Volkswagen
While the Ioniq 5 is our go-to non-Tesla recommendation, I personally leased a Chevy Blazer EV last year because the deals are just as good. I’m willing to sacrifice charging speed and driving dynamics for more space and ground clearance, so I’d recommend looking at what your local Chevy dealer is offering.
I found two-year deals for both the Equinox EV and Blazer EV that require a one-time payment of less than $6,000. One-pay leases are not always the best if you worry about exiting early, or if you don’t have upfront cash, but it’s hard to argue with these numbers. At $6,000 all-in, you can get a spacious electric crossover with over 300 miles of range for just $250 a month.
A lease deal on a Chevy Equinox EV.
Photo by: InsideEVs
If paying up front isn’t your jam, rest assured that you still have more options. First, your local Chevy dealer may be willing to arrange a similar deal with less down. But you can get another of the segment staples for cheap. Volkswagen ID.4 leases are cheap as hell right now. I saw a base-model, rear-wheel-drive version offered for 24 months at 7,500 miles a year for just $99 a month with $3,000 due at signing. If you want an all-wheel-drive, long-range ID. 4Pro, you might be able to get one for $139 a month with $3,000 down.
Examples, Not Promises
These are example deals, because every lease is different. You won’t qualify for every rebate, and you’ll need good credit to get these rates. But I’m writing about these deals to show you just how much money is sitting on the table. You just have to find a way to grab some yourself.
The good news is it’s never been easier. There are forums like Leasehackr and plenty of car-buying services out there to ease the pain. Or, if you don’t want to deal with a broker fee, do what I did: Put it requests at multiple dealers, and don’t show up in person until you have a real offer, including all taxes and fees, in writing. You can’t afford to be playing games, because time is running out.
Contact the author: Mack.Hogan@insideevs.com.
