If you've been wanting an electric car but everything seems too expensive, there's some good news on the horizon. A whole lot of EV leases are due to expire in 2026, which should lead to something of a glut, according to data analyzed by JD Power.
We have the revised IRS clean vehicle tax credit to thank. This was revamped under the Inflation Reduction Act, and while tough new battery sourcing rules and a requirement for final assembly in North America have meant many fewer EVs are eligible for the tax credit when bought new, a loophole that considers a leased vehicle to be a commercial sale means any leased EV is eligible for the $7,500 incentive, which can now be subtracted from the price of the EV at the time of sale or leasing.
Since there's also no price cap on the EV or income cap on the buyer, leasing is often a better idea than purchasing outright when it comes to new EVs, particularly for people who are worried about long-term battery degradation. (In fact, this is an overblown fear that is not backed up by data from older EVs, other than the early Nissan Leaf, which does not have active battery cooling.)
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