By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
IndebtaIndebta
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
9
Notification Show More
News
Microsoft poaches top Google DeepMind staff in AI talent war
6 hours ago
Videos
Most Americans can’t answer basic retirement questions: Survey
22 hours ago
Videos
How Airbus beat Boeing to become the world’s biggest plane maker
22 hours ago
News
White Brook Capital Partners Q2 2025 Commentary
23 hours ago
News
EU must strengthen Asian security ties despite US pressure, says Kaja Kallas
1 day ago
News
US embassy in China warns exit bans risk straining bilateral relations
1 day ago
Videos
Stocks slide amid Israel-Iran conflict, President Trump calls for Iran to make a deal
2 days ago
Videos
Why It Feels Like Every Company Suddenly Wants To Sell You Protein
2 days ago
Videos
Stocks drop and oil surges following Israel’s attack on Iran, black box found from Air India crash
3 days ago
Aa
IndebtaIndebta
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
Indebta > Finance > Now is the time to lease, not buy, an EV
Finance

Now is the time to lease, not buy, an EV

News Room
Last updated: 2023/05/16 at 5:43 AM
By News Room
Share
5 Min Read
SHARE

If you’ve been considering purchasing a new electric vehicle, you’re undoubtedly aware of the shifting financial and political landscape of pricing and incentives. And if you’re not, you should be… and I’m here to help navigate.

Contents
Why is now the time to lease an EV?What qualifies an EV for a tax credit?Which electric vehicles qualify for tax credits?What do tax credits mean for EV leases?

Instead of looking to purchase, the time is right to lease a new EV.

Why is now the time to lease an EV?

It’s always nice to be able to make payments toward owning your vehicle outright. However, the recent changes to federal tax credits for EVs have created a situation where leasing might be the better option. That’s because you open yourself to a greater range of vehicles still qualifying for tax credits. These credits can better affect your actual monthly payment instead of simply serving as a means to reduce your tax liability in a given year.

Sound confusing? Somewhat, but it’s all simple.

Plus: As Chevy nixes its Bolt EVs, there’s just one electric car for under $30K

What qualifies an EV for a tax credit?

Under the current rules of the Inflation Reduction Act, as it pertains to acquiring a new electric vehicle, for a vehicle to be eligible for the max $7,500 tax credit, it needs to undergo final assembly in North America. Fifty percent of the value of the battery components must be produced or assembled in North America. Forty percent of the value of the critical minerals sourced for the battery need to come from the U.S. or one of our free trade partners.

Finally, the manufacturer’s suggested retail price (MSRP) for vans, SUVs, or trucks has to be under $80,000 and under $55,000 for other vehicles. Income limits also apply.

Which electric vehicles qualify for tax credits?

The Cadillac Lyriq, Chevy Blazer, Bolt, Bolt EUV, Equinox, and Silverado, the Ford
F,
-0.26%
F-150 Lightning, the Tesla
TSLA,
-0.97%
Model 3 Performance, Model Y AWD, Model Y AWD Long Range, Model Y Performance, and then the various trims of the Volkswagen ID.4.

See: EVs that qualify for the up to $7,500 tax credit or partial credit

Some vehicles still qualify for the $3,750 partial credit, including the Ford E-Transit and Mustang Mach-E, the Rivian
RIVN,
+4.11%
R1S and R1T, and the Tesla Model 3 AWD Long Range or RWD Standard Range. A few plug-in hybrid vehicles (PHEVs) also qualify for full or partial credit, but I’m just listing pure battery-electric vehicles (BEVs) right now.

Learn more: What is EV, BEV, HEV, PHEV? Here’s your guide to types of electric cars

As you can see, a good handful of models qualify for tax credits. But that list leaves off tons of otherwise great EV options. For example, you don’t get a credit if you buy the Hyundai Ioniq 5 or the Kia EV6. The list does not include any Mercedes-Benz EQ models, none of the upper-rung Tesla models, nor any Audi or Porsche
POAHY,

 models.

What do tax credits mean for EV leases?

The way the Inflation Reduction Act is written, a leased vehicle qualifies for the tax credit. It’s considered commercial because you’re technically renting your vehicle from the bank that owns it during your lease period. So, the bank will get the lease credit. Automakers are using this indirectly to lower your lease payment.

Since a new vehicle lease typically considers the automaker’s finance arm as the vehicle owner, the finance arm can direct the tax credit to the lease. This lowers the lease’s cost and lowers your monthly payment. It’s almost like you put $7,500 down right off the top.

The credit maxes out at $7,500 for vehicles under 14,000 lbs, which we’re dealing with here…even on the insane 9,000-pound GMC Hummer EV.

Automakers use this creative financing to create more attractive EV leasing deals, even for EVs that don’t qualify under the purchase rules.

Don’t miss: ‘A used-car factory shutdown’: How the used-car market could get worse for buyers and what could reverse that pattern

Now’s the time to dig deeper and find automakers ready to dole out the lease deals. And another good news is that since this tech is improving reasonably quickly, you’ll be prepared for enhanced models as they come online two and three years later.

This story originally ran on Autotrader.com.

Read the full article here

News Room May 16, 2023 May 16, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Microsoft poaches top Google DeepMind staff in AI talent war

Stay informed with free updatesSimply sign up to the Artificial intelligence myFT…

Most Americans can’t answer basic retirement questions: Survey

Watch full video on YouTube

How Airbus beat Boeing to become the world’s biggest plane maker

Watch full video on YouTube

White Brook Capital Partners Q2 2025 Commentary

A look forward Market Commentary Year to date the S&P 500 (SP500,…

EU must strengthen Asian security ties despite US pressure, says Kaja Kallas

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

- Advertisement -
Ad imageAd image

You Might Also Like

Finance

Should I Keep The Mortgage In Divorce?

By News Room
Finance

What Qualifies As An HSA Eligible Expense?

By News Room
Finance

This Biden Student Loan Forgiveness Opportunity Ends In Just Weeks

By News Room
Finance

What You Really Need To Know

By News Room
Finance

4 Ways To Avoid Fake Shipping Fee Swindles

By News Room
Finance

Dell Supports Endeavor Miami’s Quest To Empower Black Founders

By News Room
Finance

The World’s 10 Most Expensive Cities To Live

By News Room
Finance

Biden Sends Student Loan Forgiveness Emails To 800,000 Borrowers

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?