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.
We’ve been following Rivian’s quest to develop an in-house electric two-wheeler for years now, dating back to 2022 when we spotted them poaching top electric bicycle talent from companies like Specialized. But despite years of development work, no one on the outside really knows what the company’s micromobility startup ALSO is truly working on. And thanks to several strange teaser videos shared by the apparent skunkworks program, we still don’t know.
We had a pretty good idea that the company has its sights set on an honest-to-goodness electric bicycle, at least based on what Rivian CEO RJ Scaringe said back in 2023.
Rivian spun out a startup called ALSO to focus its micromobility work, and they’ve been hard at work both on and offline. ALSO’s social media team has kept up a steady drip of eclectic teasers, often showcasing a single component without any explanation or background. And it appears they’ve spent big ad money on getting those teasers in front of a large audience.
For example, one post showcases the copper windings of two different motor stators, showcasing what appears to be two different sizes of relatively small-diameter hub motors, though perhaps one is the stator of a mid-drive motor. Two motors would be surprising on an electric bicycle. While it’s been done many times, dual motors are usually found on out-of-class e-bikes that are essentially small electric motorcycles skirting motorcycle laws. A single motor is plenty powerful for street-legal e-bikes, and thus dual motors would only seem necessary on something intended for more power than a typical electric bicycle.
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Another clip shows a control board that has a surprisingly large footprint for something that would conceivably be stored in the frame or body of a conventional electric bicycle. It also looks to have connections for two different motor phase wires, implying driving a pair of motors from the single board. Back in 2010, I headed up an electric bicycle startup developing a model with a completely enclosed front triangle, which could be a solution that would support housing such large-format electronic components within ALSO’s presumed e-bike.
A window in the large circuit board also gives us a partial view of a pair of wheels that seem roughly bicycle-sized, also revealing a conventional fork and disc brake rotor on the wheel.
The potential for dual motors and some large fairing to conceal that circuit board would imply the possibility of something larger than a typical e-bike, perhaps even a moped or light electric motorcycle. The same clip also appears to reveal an engineer working on a gray metal component that looks suspiciously like a rear swing arm, which would lead us to believe that the bike would feature rear suspension.
Despite some of those clues that would imply something bigger or more powerful than a typical e-bike, other teasers show people “riding” along a sidewalk on invisible bikes, miming pedaling actions, which would imply functional pedals. And another teaser displays a belt pulley of what could be a belt drive on the pedal drivetrain, though it could also be a final drive coming from a centrally mounted motor.
In yet another strange post, the bike is completely blurred out, but we can see a rider holding what are likely a set of handlebars awkwardly close to his waist, which would be a position more commonly seen on a standing electric scooter than on an e-bike or e-motorcycle. However, he may also be straddling the bike and simply standing closer to the bars.
He also appears to be wearing a jacket with back armor, something rarely seen among e-bike riders but much more common in the motorcycling world (though I’ve advocated for it on e-bikes, too).
On the other hand, the bike or skate helmet worn by the rider still implies that we’re back in the bike world, not the moto-world.
Keeping the hype train rolling, another short video shows a partial view of the battery in various stages of assembly. The cylindrical cells look like 18650 or 21700 cells, used in many electric vehicles, but most commonly light electric motorbikes and e-bikes. While the camera is too zoomed in to determine the size of the battery, it looks like the cells are arranged in a fairly tightly packed configuration with frequent and close-spaced reversing of the cells. This is done to weld the cells in series – a necessary step for increasing the voltage of the pack.
But the fairly small number of cells grouped together in a single orientation, perhaps as few as six (though it could be more due to the limited framing of the shot), would imply a somewhat small battery by motorcycle standards, potentially around 20Ah or less, if using relatively common 3.5Ah 18650 cells arranged in a 6p configuration. That puts us back in electric bicycle territory (or an underspec’d electric moped), though there could be multiple battery packs to increase the overall capacity.
But pushing back towards something larger is the sophisticated LED lighting setup, which uses two powerful LED segments to create what might be a high/low beam configuration. We rarely see such powerful lighting on electric bikes and find this setup more often on seated electric scooters and motorbikes. But then again, ALSO is part of Rivian and thus would easily benefit from Rivian’s automotive-level components and supply chain.
Then there’s a censored shot of two people on the bike in question, with a child strapped into a kid’s safety seat, implying a utility or cargo bike configuration that can allow for a passenger on the rear rack.
Plus, to make things even more interesting, these shots are all interspersed with artistic designs, strange kinetic wind art, penguin furries, crystal prisms, nature themes, and other seemingly random motifs that either point to the artistic whims of ALSO’s social media folks or are just random red herrings to confuse us further.
Basically, there are many clues, some of them seemingly contradictory, none of which really tell us that much more than we already knew, which is that ALSO is building personal electric vehicles of some unknown type.
The company says all will be revealed on October 22, so we’re on the edge of our seats waiting for that reveal. It could be a major shakeup in the industry, or the company could go the route of basically every other automotive company that tried to build an e-bike and failed miserably. Time will tell.
But there’s one thing I can say for sure. I’ve covered e-bikes longer than just about anyone else in this industry, and this is the weirdest freaking launch lead-up I’ve ever seen.
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Ford blamed slowing demand for electric vehicles after announcing plans to slash another 1,000 jobs at its Cologne EV plant in Germany.
Ford cuts jobs in Germany over weak demand for EVs
In a press release on Thursday, Ford announced plans to cut another 1,000 jobs at its plant in Cologne, Germany.
“In Europe, demand for electric cars remains well below industry forecasts,” the company said. Ford is blaming weak demand for EVs, saying it will move from a two-shift operation to a single-shift operation, starting in January.
The proposed plans from last year include cutting about 4,000 jobs in Europe by the end of 2027, or about 14% of its European workforce. The job cuts will be primarily in Germany and the UK as part of a broader restructuring. Tuesday’s announcement will raise it by another 1,000.
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Earlier this year, Ford faced a historic worker strike in Cologne that disrupted production. The news announced on Tuesday will likely affect vehicle production again.
Ford Explorer EV production in Cologne (Source: Ford)
Ford currently builds electric vehicles, including the Explorer and Capri, in Cologne, but it’s facing new competition from BYD and other low-cost EV makers from China.
Although Ford is blaming weaker-than-expected demand for EVs, according to the latest data from the European Automobile Manufacturers’ Association (ACEA), 1,011,903 battery electric vehicles (BEVs) were registered in the EU in the first seven months of 2025, led by increases in Spain (94.5%), Germany (59,2%), and Italy (60.3%).
Ford’s electric vehicles in Europe from left to right: Puma Gen-E, Explorer, Capri, and Mustang Mach-E (Source: Ford)
If you look at the most recent registration data from the German Federal Motor Transport Authority (KBA), Ford registered 10,924 BEVs in Germany through August, or less than 15% of the nearly 74,000 vehicles it sold.
The shortcomings come despite Ford investing nearly €2 billion ($2.4 billion) to upgrade the facility to produce electric vehicles. Ford also offers the Puma Gen-E, the electric version of its best-selling vehicle in Europe. It was the first EV to qualify for the full £3,750 ($5,000) discount from the UK’s recently launched Electric Car Grant program.
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Rivian broke ground on its long-planned Georgia factory today, with the goal of getting cars off the line in 2028. The company plans to build its highly anticipated R2 and R3 vehicles there, though it will start initial production of the R2 in its existing Illinois plant in the interim.
The plant will be built in a rural area outside Social Circle, Georgia, about an hour East of Atlanta. Rivian has also announced an East Coast Headquarters in Atlanta, which will support the new plant.
The factory was originally supposed to open in 2024, but has been significantly delayed. Most recently, Rivian decided to pull forward production of the R2 and move it to the company’s existing factory in Normal, Illinois, saving over $2 billion in short-term costs. It made this announcement alongside the unveiling of the R2 and R3.
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But Rivian still has targets to meet, and those targets were imposed by entities with rather deep pockets. As is the case with many economic development projects, the company has grants from the state of Georgia and loans from the federal government, each of which have timetables attached.
The plan now is for the factory to start producing cars in 2028. The factory will be built in two phases, each with 200,000 units of capacity, with the plans to use that capacity to expand sales outside of North America.
Today’s groundbreaking represents a big win for Georgia, which has attracted significant amounts of investment in EV-related manufacturing as a result of President Biden’s Inflation Reduction Act.
Since Biden’s EV push, Georgia alone has seen 22 facilities announced, representing $24.4 billion in investment and 26,400 EV jobs, per the BlueGreen Alliance’s EV Jobs tool. This is despite Georgia Governor Brian Kemp being a climate change skeptic… but at least he still wants the state to have good EV jobs, and attended today’s groundbreaking. Georgia’s two Democratic Senators, Jon Ossoff and Raphael Warnock, have both provided significant support in bringing these EV jobs to the state.
Rivian’s project was the largest of these announced facilities at the time of its announcement, with 7,500 planned jobs. But since then, Hyundai’s upcoming Georgia factory and its 10,000+ planned jobs exceeded it in size. The two factories, combined, make up the majority of planned EV jobs for the state of Georgia.
However, it’s still a strange time for EVs in the US. Not only are the federal EV tax credit and other EV manufacturing incentives ending (even though the far higher subsidy received by gas cars remains), some of Georgia’s other EV investment has recently been thrown into question.
Rivian has not suffered a similar fate, but there could be unanticipated future roadblocks along the way, depending on how committed the current occupier of the White House is to destroying American industry.
But for Rivian’s part, it says that EV credits aren’t required to make its plans for the factory pencil out. Alex Hoffman, its Chief Policy Officer, said “we did not build this company based upon federal tax incentives.”
Despite this, the company is still breaking ground at what could be considered a shaky time for building EV plants in the US – maybe the EV tax credit isn’t necessary to make the plans pencil out, but the $8 billion in loans and support from governments seems to have made enough difference to keep plans on schedule, this time.
The company hosted an event this weekend for the community, which thousands of people attended. Rivian says the plant will start vertical construction in 2026, and vehicles will start rolling off the line in 2028.
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