Looking to put a huge holiday ribbon on a new EV? There’s a widespread belief that buying a new car is always much cheaper than leasing it in the long run. However, we’ve found six EV lease deals that shatter that myth, with terms that pass the entire commercial clean vehicle Federal tax credit to the lessee and enable the lessee to eventually own the vehicle for thousands of dollars less than paying cash up front.
As mentioned last month, some folks are using the “1-day lease” to take advantage of these deals by buying out their lease almost immediately. This enables the federal tax credit to be applied without stipulations on foreign made vehicles with foreign made batteries or owner tax bracket considerations. Ask about this at your local dealer.
However, do the math to make sure that an early payoff is cheaper than riding out the full term, especially if the intent is to finance the buyout, as all the lease deals mentioned below except for one have a money factor that translates to an APR that is significantly less than current new car interest rates. Also, in the relatively high inflation environment we are unfortunately enjoying right now, it could be wise to defer the payment of over half the cost of the car to three years from now when the US dollar could be worth a lot less than it’s worth today.
Lexus currently has a lease offer on the $62,100 RZ450e Premium that’s $499/month for 36 months, $5999 due at signing, and the option to buy for $28,808 at the end of the lease. These compelling terms are a result of a huge $15,000 lease incentive that significantly reduces the capitalized cost of this five-seat SUV with a 220-mile range, zero to sixty time of 4.6 seconds, and 34.9 cubic feet of cargo space behind the rear seats.
During the three-year lease term, tallying up the $5999 plus 35 payments of $499 (the first month is paid for at signing) adds up to $23,464. At an assumed 9% tax rate on the up-front capitalized cost reduction, down, and first payment ($1818) as well as on each subsequent payment ($45/month), the total cost to lease the RZ450e is $26,899.
At the end of the lease term, buying the three-year-old RZ450e will cost $29,808 plus $2683 tax for a total of $32,491. All-in, the lease-to-own cost adds up to just $59,390.
In comparison, paying cash up front at delivery will cost a whole lot more: $62,100 MSRP plus $5,589 tax, less a paltry $1000 rebate, comes out to $66,689. That’s $7,299 more than walking the lease-to-own path! For the nearly 80% of consumers that finance auto purchases, Lexus does have a 2.49% promo rate on a 48-month loan, and with $7318 down the payment comes out to be $1323/month. Which is a lot, but after three years, the payoff is only $15,661. Still, the total cost to own the RZ after three years on the promo rate is $69,596 – that’s $10,200 more than leasing it.
By the way, the .00324 money factor (APR 7.78%) on Lexus’ RZ450e lease offer is relatively lofty compared to the rest of the deals mentioned here, which range from 1.68% to 4.58%. So it may be possible to save even more money by buying out the lease early and refinancing at a lower rate.
Toyota continues to improve its lease terms on the bZ4X, now down to $349/month for 36 months, $3999 due at signing, and the option to buy for $21,381 at lease end for the base XLE trim in front-wheel-drive configuration that MSRPs at $44,544. Assuming a 9% tax rate and working though the same math used on the Lexus RZ450 lease offer results in a lease-to-own cost of just $41,627.
An all-cash purchase is a much more costly proposition: its $44,544 MSRP plus 9% tax adds up to $48,553, which is almost $7000 over the lease-to-own cost. Toyota has a financing promo that’s a little better than paying cash – a $2500 incentive tied to a 48-month loan at 1.99% – but with $4626 down, monthly payment of $899, and payoff of $10,667 after three years, the lease-to-own method still comes out thousands ahead, by $5710 to be exact.
We found a couple of dealers with a relatively modest discount on this five-passenger SUV capable of covering 252 miles on a full charge, holds 27.7 cubic feet of cargo behind the rear seats, and scoots from zero to sixty in 6.7 seconds. Mossy Toyota and Toyota of North Hollywood in California are listing their front-drive bZ4X inventory at around $1700 below MSRP, which seems to be on par with TrueCar pricing estimates for the rest of the country except for the eastern seaboard states from Virginia northward, where it seems the bZ4X sells for a slight premium. Check for Toyota bZ4x deals in your area.
Thanks to Subaru’s consistently excellent lease terms, this marks the third time in a row that the Solterra is being featured in our EV Deals write-up. Last month it was highlighted as the only all-wheel-drive EV with an average monthly lease cost under $400 (which is still the case), and now we’re talking about it again because its zero-down, $399/month lease with the option to buy for $25,421 at 36 months calculates to an after-tax lease-to-own total of just $44,077. That’s over six grand less than either paying cash up front or taking advantage of Subaru’s 72-month 0% financing offer, both costing $50,380 after adding a 9% tax on its $46,220 MSRP.
The Solterra is built on the same dedicated modular EV platform as the Lexus RX450e and Toyota bZ4X, with the Solterra and bZ4X appearing to be near-identical twins when compared to the RZ450e’s slightly larger exterior and properly painted front fenders. The Solterra also bears a close resemblance to the bZ4X in interior dimensions and performance, capable of carrying 29 cubic feet of cargo behind its rear seats and hustling from standstill to 60mph in 6.5 seconds – numbers that are closer to the bZ4X versus the upscale RZ450e.
Where the Solterra truly outshines its platform twin and similar electrics from other marques is its tremendous value due to lease terms that allow the lessee to walk away from the all-wheel-drive SUV after paying a total of just $16,381 over three years, tax included. That’s nearly two grand less than a front-drive bZ4x XLE, and nearly three grand less than a front-drive Nissan Ariya Engage or rear-wheel-drive VW ID.4 Pro.
The EQB300 4MATIC is an all-wheel-drive five-seat SUV that carries 22 cubic feet of cargo behind its second-row seats (a third row option is available), goes 232 miles on a charge, and accelerates from standstill to 60mph in seven seconds. Its current 36-month lease offer of $519/month, $5613 at signing, and option to buy for $29,057 at termination tallies up to an after-tax lease-to-own cost of $58,240. That’s $4098 less than an all-cash purchase at its $59,300 MSRP minus a $2,299 “dealer participation” discount that’s built into said lease offer, plus 9% tax. Mercedes-Benz lease offers on other EQB-Class trim levels should result in similar savings over a cash deal since they all share the same 49% residual and have a money factor that’s still on the low side (effective APR of 3.29%, versus 2.28% for the EQB300).
We didn’t find any Mercedes-Benz dealership websites that advertise discounts on new inventory, but a quick check of car shopping websites indicates that average discounts ranging from about $1000 in the Northeast to over $5,000 almost everywhere else can be expected. Check for Mercedes-Benz EQB-Class deals near you.
Now that improved-for-2024 models are already arriving at dealerships, the favorable lease terms on the 2023 C40 Recharge core (MSRP $56,390) will likely disappear sooner than later as inventory continues to dwindle. At $483/month for 36 months, $3933 due at signing, and lease-end buyout of $30,543 based on a residual of 54%, lease-to-own costs $2799 less than paying cash up front for this five-passenger, all-wheel-drive SUV that rockets from zero to sixty in 4.2 seconds, travels 226 on a full charge, and carries 15 cubic feet of cargo with all seats in place. Costco members can save even more by taking advantage of the current member-only $1000 incentive on the purchase or lease of a new Volvo.
Looking for a luxury-branded all-wheel-drive five-passenger electric SUV that can squeeze close to 300 miles out of a full charge? The Audi Q8 e-tron comes close at 285 miles, which is at least 50 miles farther than the other luxury-branded vehicles mentioned so far in this article. But that longer security blanket comes at a cost, as the total outlay to own the Audi at lease termination is over $18,000 more expensive than the Lexus RZ450e, Mercedes-Benz EQB300 4MATIC, or Volvo C40 Recharge. To be fair, the Q8 e-tron is larger – built to punch in a heavier weight class that includes the Mercedes EQE, BMW iX, and Tesla Model X – so its higher price (MSRP $78,035) should be expected.
Audi’s current lease offer of $599/month for 36 months, $6493 due at signing, and the option to purchase for $42,919 at lease end currently adds up an attractive lease-to-own deal that costs $2249 less than an all-cash transaction at a 9% tax rate.
Curiously, we haven’t seen many dealer-advertised discounts or improved lease offers on the Q8 e-tron since late summer despite a decent amount of available inventory, but car shopping websites like Cars.com and TrueCar seem to indicate that dealer discounts of $4000 or more are out there in some areas. Check for Audi Q8 e-tron discounts in your area.
… and the rest
The rest of the sub-$80K EV lease offers we evaluated for the lease-to-own scenario worked out to be more expensive than an all-cash transaction. However, most resulted in costing significantly less than financing, assuming a 72-month loan at 6% APR, or if available, at the lowest manufacturer promo rate. So savvy consumers that prefer to put cash to to work elsewhere rather than tie it all up in an expensive depreciating asset should seriously consider leasing over financing if one of these 2023 electrics are in the crosshairs: Mercedes-Benz EQE 350 4MATIC SUV ($8687 lease-to-own savings over financing), BMW i4 eDrive35 ($5,373 savings), Audi Q4 e-tron 40 Premium Plus ($5307 savings), Kia EV6 Wind AWD ($4611 savings), Nissan Ariya Engage FWD ($3544 savings), Hyundai Ioniq 6 SEL RWD ($3025 savings), Volvo XC40 Recharge Core ($2600 savings), Kia Niro EV Wind ($935 savings).
Interested in the Hyundai Ioniq 5? If you want to own it, buy it. We crunched the numbers on the on the 36-month Ioniq 5 SEL RWD lease, and with a lease-to-own cost of $54,801, it would take $3465 more to possess after three years compared to taking out a 72-month loan at 6% with $5647 down. The Ioniq 5 lease suffers from a high money factor that translates to 7.7% APR, a relatively high 61% residual, and a $7500 lease incentive that is no better than the rebate on a purchase.
Want a VW ID.4? Well, those seeking ownership that qualify for the full Federal EV tax rebate should be better off buying rather than leasing. For those that don’t qualify, it’s a wash, which is roughly the same story for the Ford Mustang Mach-E. As for the Ford F-150 Lightning, just buy it if you’re playing for keeps because the lease-to-own method on a 36-month lease, particularly on a Lariat that qualifies for a $7500 retail incentive on a purchase as well as the $7500 Federal EV tax rebate, could cost over $10,000 more than financing it.
How about a Model 3 or Model Y? Both have very compelling 36-month lease terms, but only for those that want to ditch the car after three years. Sadly, there is no option to buy out a recent Tesla lease.
In a high-tech move that we can all get behind and isn’t dystopian at all, the City of Barcelona is feeding camera data from its city buses into an advanced AI, but they swear they’re not using the footage to to issue tickets to bad drivers. Yet.
UPDATE 06DEC2025: the ticket bot cometh to Chicago.
Last month, the Chicago Transit Authority (CTA) contracted with Hayden AI to equip six of its transit buses with AI-powered license plate readers intended to target illegally parked vehicles in an area bound by North Avenue, Roosevelt Road, Lake Michigan and Ashland Avenue.
As with similar pilots in Barcelona and NYC, the Hayden AI technology captures information from vehicles illegally blocking bus and bike lanes, then submits its “findings” to a human reviewer for confirmation. If the reviewer agrees with the AI, they can issue a fine of $90 for parking in a bus lane, $250 for bike lane obstruction, $50 for parking in expired meters outside of the central business district, and $140 for personal vehicles parked in commercial loading zones.
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Despite those hefty fines, Chicago Mayor Brandon Johnson is quick to point out that the goal of the program isn’t to generate revenue.
“Every Chicagoan deserves a transportation system that is safe, reliable, and efficient,” said Mayor Johnson, in a statement. “By keeping bus and bike lanes clear of illegally parked vehicles, the Smart Streets pilot helps us protect our most vulnerable road users while improving the daily commute for riders across the city.”
The official release makes no mention of the fact that Hayden AI’s system generated nearly $21 million in revenue for the city in just a few months, despite the fact that thousands of those ticketed weren’t doing anything wrong.
We wrote about some of these issues back in Jun. You can read that original article, below, and let us know what you think of Chicago’s “non-revenue” claims in the comments.
Barcelona ticketing AI; via Hayden AI.
Barcelona and its Ring Roads Low Emission Zone have earned lots of fans by limiting ICE traffic in the city’s core. The city’s latest idea to promote mass transit is the deployment of an artificial intelligence system developed by Hayden AI for automatic enforcement of reserved lanes and stops to improve bus circulation – but while it seems to be working as intended, it’s raising entirely different questions.
“Bus lanes are designed to help deliver reliable, fast, and convenient public transport service. But private vehicles illegally using bus lanes make this impossible,” explains Laia Bonet, First Deputy Mayor, Area for Urban Planning, Ecological Transition, Urban Services and Housing at the Ajuntament de Barcelona. “We are excited to partner with Hayden AI to learn where these problems occur and how they are impacting our public transport service.”
Currently operating as a pilot program on the city’s H12 and D20 bus lines, the system uses cameras installed on the city’s electric buses to detect vehicles that commit static violations in the bus lanes and stops (read: stopping or parking where you shouldn’t). The Hayden AI system then analyses that data and provides statistical information on what it captures while the bus is driving along on its daily route.
Hayden AI says that, while it photographs and records video sequences and collects contextual information of the violation, its cameras do not record license plates or people and no penalties are being issued to drivers or owners of the vehicles.
So far so good, right? But it’s what happens once the six mont pilot is over that seems like it should be setting off alarm bells.
Big Brother Bus is watching
“You are being recorded” sign in a bus; via Barcelona City Council.
The footage is manually reviewed by a Transports Metropolitans de Barcelona (TMB) officer, who reportedly reviewed some 2,500 violations identified by AI in May alone. But, while the system isn’t being used to issue violations during the pilot program, it easily could.
And, in fact, it already has … and the AI f@#ked up royally.
AI writes thousands of bad tickets
NYC issued hundreds of thousands of tickets; via NBC.
When AI was given the ability to issue citations in New York City earlier this year, it wrote more than 290,000 tickets (that’s right: two-hundred and ninety thousand) in just three months, generating nearly $21 million in revenue for the city. The was just one problem: thousands of those drivers weren’t doing anything wrong.
What’s more, the fines generated by the AI powered cameras were supposed to be approved only after being verified by a human, but either that didn’t happen, or it did happen and the human operator in question wasn’t paying attention, or (maybe the worst possibility) the violations were mistakes or hallucinations, and the human checker couldn’t tell the difference.
In OpenAI’s tests of its newest o3 and o4-mini reasoning models, the company found the o3 model hallucinated 33% of the time during its PersonQA tests, in which the bot is asked questions about public figures. When asked short fact-based questions in the company’s SimpleQA tests, OpenAI said o3 hallucinated 51% of the time. The o4-mini model fared even worse: It hallucinated 41% of the time during the PersonQA test and 79% of the time in the SimpleQA test, though OpenAI said its worse performance was expected as it is a smaller model designed to be faster. OpenAI’s latest update to ChatGPT, GPT-4.5, hallucinates less than its o3 and o4-mini models. The company said when GPT-4.5 was released in February the model has a hallucination rate of 37.1% for its SimpleQA test.
I don’t know about you guys, but if we had a local traffic cop that got it wrong 33% of the time (at best), I’d be surprised if they kept their job for very long. But AI? AI has a multibillion dollar hype train and armies of undereducated believers talking about singularities and building themselves blonde robots with boobs. And once the AI starts issuing tickets to the AI that’s driving your robotaxi, it can just call its buddy AI the bank to send over your money. No human necessary, at any point, and the economy keeps on humming.
But, like – I’m sure that’s fine. Embrace the future and all that … right?
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The Japanese agriculture equipment experts Kubota are partnering with Norwegian tech startup Kilter to co-develop, pilot, and promote the new Kilter AX-1 ultra high-precision weeding robot across Europe.
To accomplish those goals, the Kilter AX-1 uses a patented tech package it calls “Single Drop Technology.” Single Drop Technology combines AI weed recognition and ~6 mm placement accuracy to deliver micro-doses directly to weeds, protecting the crop and minimizing the impact to the surrounding soil.
Getting that 6 mm droplet application wasn’t easy. “You can’t buy a field-ready droplet applicator off the shelf,” Anders Brevik, CEO of Kilter, told AgTechNavigator. “We had to design one that survives years of dust, vibration, temperature swings, and long operating days, while keeping droplet size, timing, and placement consistent. That takes deep agronomy knowledge, a lot of engineering, and thousands of hours of field testing.”
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Kilter says growers can reduce herbicide use by up to 95% by adopting the new AX-1, shifting selectivity from chemistry to smart application.
Kubota Europe’s Smart Farming Solutions Division, launched back in 2024, is working with the company’s European dealer network to train up sales staff and integrate the Kilter robot into Kubota’s broader farm solutions portfolio. There’s no word, yet, on pricing or if/when we’ll get the Kilter in North America.
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Autonomous electric tractor concept; by John Deere.
Energy independence and cost control are top of mind for farmers, and more companies are rolling out electric equipment that can be charged by solar, wind, or even on-farm biogas. With the debut of its latest next-generation electric tractor at Agritechnica last month, John Deere is signaling that it intends to lead that revolution.
John Deere says the E-Power electric tractor prototypes that it’s been quietly teasing since 2022 will be as quiet as a car, as easy to drive as a golf cart, and require minimal upkeep – and all while providing the same performance as the company’s beloved diesel tractors.
“Our goal with the E-Power tractor is to ensure it performs the same jobs as its diesel counterparts and works with the same implements, while unlocking incremental value,” explains Derek Muller, business manager for battery electric vehicle systems at John Deere. “Through our electric lineup, we’ll look to reduce operational and maintenance costs, deliver powerful and reliable performance, and intuitive operation.”
The latest electric John Deere tractor prototype, recently unveiled at Agritechnica, is equipped with a 100 hp drive motor and two, additional motors. One 130 continuous hp electric motor for the PTO, and a third for the hydraulic pump. They’ll draw power from up to five KREISEL li-ion battery packs, allowing customers significant pricing flexibility based on their ability to determine how much power and run time they need (and are willing to pay for) to get their jobs done.
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Electric John Deere tractor
130 hp electric tractor shown at Agritechnica; by John Deere.
The customization will go well beyond just battery size. Deere plans to offer customers a number of different tractor and equipment options, and keep costs competitive by basing them on a vehicle common architecture.
“John Deere aims to develop a single electric concept that customers can configure to their own needs,” writes Bob Karsten, at Future Farming. “Buyers will be able to choose the number of batteries (up to five, totalling 195 kWh), the axle type (narrow or wide track), and the cab (either an orchard cab or the familiar 5M cab). In essence, buyers select their preferred battery capacity. With the largest battery (195 kWh), the tractor can operate for eight hours. The target is to enable fast charging up to 80% in 30 minutes.”
Deere revealed one version of that upcoming electric tractor (above) at Agritechnica last week, but despite being an early prototype, it’s a fully functional piece that’s already seen duty with some of John Deere’s most trusted customers.
Daniel, an orchard customer from California, said his experience with the electric tractor led him to believe it could help ease training new operators, “I do think the tractor is much easier for drivers to understand it and to drive it. It would take less time to teach them [operators] how to use it.”
Tyler, a vineyard customer in California, believes that a new electric tractor could help his operation meet its sustainability goals, “When we look at our carbon footprint, greenhouse gas emissions, we want to try and reduce those as we run our equipment to farm our vineyards, we want to be conscious of the community at large.”
You can check out a quick, virtual walkaround of John Deere’s E-Power electric tractor concept in this (admittedly older) video released around the ACT Expo, and expect more details and possible configurations at the upcoming CON/AGExpo conference in March.
John Deere E-Power configurations
SOURCE | IMAGES: John Deere.
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