TL/DR –

While buying an EV is still a bougie dream at $56K, leasing one is like getting designer shoes on sale—affordable and you can change them next season. Thanks to Uncle Sam’s $7,500 tax credit loophole for leases, you can snag a fancy Hyundai Ioniq 5.. And with some leases dropping below $300 a month, it’s practically a crime not to consider going electric.

EV Leases Are Getting Cheaper: Here’s Why

It’s getting more affordable to lease electric vehicles as interest rates push up car-buying costs, and dealers offer incentives to clear out EV stock.

Owning a car is expensive—new cars averaged $48,401 in July, according to Kelly BlueBook data. For EVs, it’s even steeper at $56,520, but leasing is emerging as a more budget-friendly option for those hesitant about going all-in on electric.

“There are some absurdly cheap deals on EV leases right now,” says Ivan Drury, director at Edmunds. “Leasing is not just for testing the waters—it’s affordable and a no-brainer for many consumers.”

Another perk? The federal $7,500 tax credit for clean vehicles has fewer restrictions for leases compared to purchases. For example, when you lease, you don’t need the car to be made in the U.S., making models like the Hyundai Ioniq 5 eligible for discounts.

Lease payments vary, but consumers can sign deals for around $300 a month, says Sean Tucker from Kelley Blue Book. Some of the lowest rates are for the 2024 Kia EV6, which had rates as low as $319 in August, according to KBB.

Drury notes the average EV lease payment is $578 a month, but these prices are a steal compared to outright ownership, making leasing a great choice for those on the fence about EVs.

Original Story at www.cbsnews.com