The Real Reason Behind Those Surprisingly Low Payments

Over the past few years, electric vehicles (EVs) have exploded in popularity — and if you’ve looked into leasing one, you might’ve noticed something curious:

💡 EVs often lease better than their gas-powered counterparts.
Lower payments, smaller down payments, and sometimes jaw-dropping deals on high-tech vehicles.

So what’s the catch?
Well… there isn’t one. But there is a hidden reason behind the numbers.

🚀 The #1 Reason EVs Lease So Well: Federal Tax Credits

While buying an EV comes with its own incentives, leasing unlocks them in a different — and often more powerful — way.

🔍 How It Works:

• When you lease an EV, you’re not the legal owner — the leasing company is.
• That leasing company can claim the full $7,500 federal tax credit.
• Instead of pocketing it, they often pass most (or all) of that savings onto you in the form of lower monthly payments or bonus lease cash.

It’s essentially a subsidized discount built into the lease, and it’s not dependent on your personal tax situation.

🏛 State Incentives Sweeten the Deal

Many states offer stackable EV incentives that apply to leases too, such as:

• 💸 California Clean Vehicle Rebate ($1,000–$7,500)
• 🔌 New Jersey: No sales tax on EVs
• 🌲 Colorado: Up to $5,000 off (as of 2025)

These additional kickbacks either reduce your due-at-signing cost or lower your effective monthly payment even further.

📉 Real-World Example

Let’s say a gas-powered compact SUV leases for $319/month with $2,500 down.
But the EV version (same MSRP range) might lease for $259/month with just $1,499 down — even though it costs more to manufacture.

That’s the incentive cash working behind the scenes.

📊 Other Reasons EVs Lease Better

• Higher residual values — especially for brands like Tesla and Toyota
• Manufacturer push: automakers want more EVs on the road to meet emissions targets
• Lower risk for leasing companies: EVs typically require less maintenance and return in better shape

🧠 Bottom Line

Leasing is one of the smartest ways to get into an EV, especially while federal and state incentives are still flowing.

Unlike buying — where your ability to claim a tax credit depends on your income and taxes — leasing builds those perks into the deal upfront.
You benefit from the savings without the paperwork or tax-season wait.

🔗 Ready to Compare EV Lease Deals?

👉 See the Best EV Lease Offers Right Now
Ranked by Lease Value Rating (LVR) — so you can spot real value at a glance.