Database / Guides / Leasing vs buying an EV (after the tax credit ended)
The $7,500 federal credit is gone — for purchases and leases. That rewrote the lease-vs-buy math for EVs, so here's how it actually pencils out now.
Before September 30, 2025, leasing had a famous loophole: the commercial clean-vehicle credit let dealers claim $7,500 on leased EVs with none of the income or assembly restrictions buyers faced, and pass the savings through as lease cash. That credit ended on the same day as the purchase credit. Today, neither buyers nor lessees get federal help — the playing field is level, and it's level at zero.
Technology risk. EV range, charging speed, and prices are still moving fast — a car that's competitive today may look dated in three years. Leasing transfers depreciation risk to the lender, which matters because EVs have been depreciating harder than gas cars. If you like a new car every few years and drive predictable mileage, leasing an EV remains the lower-stress option. Just know you're paying for that flexibility: with no credit to offset it, lease payments reflect the full depreciation hit.
Fuel savings compound. The average EV in our database costs about $784 a year to fuel versus thousands for a gas car — savings you keep every year you own it, and they grow the longer you hold. Buyers also dodge mileage limits and wear-and-tear charges, and today's lower EV prices (the average EV here starts around $97,739) mean less to finance than two years ago. If you keep cars 6+ years and can charge at home, buying usually wins.
Compare total three-year cost, not monthly payments: lease payments × 36 plus due-at-signing, versus 36 months of loan payments plus expected depreciation minus fuel savings (our fuel-cost calculator gives you the fuel side). Get the money factor and residual in writing on any lease — dealers can mark up the money factor quietly. And whatever you choose, the cheapest entry point in our database is the 2027 Chevrolet BOLT at $28,995 before destination.
Not financial advice. Tax situations differ; the credit dates above reflect federal law as of October 2026.
No. The commercial clean-vehicle credit that dealers used to pass $7,500 through to lessees ended September 30, 2025 — the same day as the purchase credit.
Leasing still wins if you want a new car every 3 years and fear depreciation; buying usually wins if you keep cars 6+ years and charge at home, since fuel savings compound.
Total 3-year cost on both sides: all lease payments plus due-at-signing versus loan payments plus depreciation minus fuel savings. Never compare monthly payments alone.
Figures: U.S. EPA via fueleconomy.gov, model years 2025–2027. Updated October 2026.