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.
There is no state more associated with cars and car culture than Michigan – and the state that’s home to the Motor City has just taken a huge step into the future with the deployment of its first-ever all electric police vehicle.
The 2024 Ford Mustang Mach-E patrol vehicle is assigned to the Michigan State Police State Security Operations Section, and will be to be used by armed, uniformed members of the MSP specializing in general law enforcement and security services at state-owned facilities in the Lansing, MI area.
“This is an exciting opportunity for us to research, in real time, how a battery electric vehicle performs on patrol,” says Col. James F. Grady II, director of the MSP. “Our state properties security officers patrol a substantially smaller number of miles per day than our troopers and motor carrier officers, within city limits and at lower speeds, coupled with the availability of charging infrastructure in downtown Lansing, making this the ideal environment to test the capabilities of a police-package battery electric vehicle.”
In those tests, the EVs have impressed – but the MSP has been hesitant to commit to a BEV until now. “We began testing battery electric vehicles in 2022, but up until now hybrids were the only alternative fuel vehicle in our fleet,” said Lt. Nicholas Darlington, commander of the Precision Driving Unit. “Adding this battery electric vehicle to our patrol fleet will allow us to study the vehicle’s performance long-term to determine if there is a potential for cost savings and broader applicability within our fleet.”
President-elect Donald Trump has vowed to declare a national energy emergency as soon as he takes office Monday, months after promising voters that he would cut their electric and gasoline prices in half in the first year of his administration.
“To achieve this rapid reduction in energy costs, I will declare a national emergency to allow us to dramatically increase energy production, generation and supply,” Trump told supporters at a rally in Potterville, Michigan last August. “Starting on day one, I will approve new drilling, new pipelines, new refineries, new power plants, new reactors and we will slash the red tape.”
The president-elect reiterated as recently as Dec. 22 his intention to “declare a national energy emergency” on the first day of his administration. He vowed to issue a series of executive orders to reverse Biden administration policies on natural gas exports, drilling and emissions standards.
Trump plans to establish a National Energy Council led by North Dakota Gov. Doug Burgum, his pick to lead the Department of the Interior. Burgum said during a Senate hearing on his nomination this week that he expects the council to be established through an executive order.
It is unclear whether emergency declaration would be largely symbolic or would invoke broader powers that go beyond the executive orders on energy that Trump is widely expected to issue Monday. The president-elect’s transition team did not respond to a request for comment.
“My anticipation is that it will be a rhetorical declaration of an energy emergency,” said Mike Sommers, president of the oil industry’s lobby group American Petroleum Institute. “When you bundle together the executive orders, that will be the answer to what to do about the energy emergency.”
There are several emergency statutes Trump could invoke that are related to energy, said Glenn Schwartz, director of energy policy at the consulting firm Rapidan Energy. Emergencies are often loosely defined under federal law, giving the president broad discretion to use them as he sees fit, Schwartz said.
And Trump would likely face little pushback from the courts because they are reluctant to challenge presidential determinations related to national security, Schwartz said.
“What you end up with is that even if Trump were to expand his emergency powers in unprecedented ways, it is not clear that courts would step in to halt any of these resulting actions,” the analyst said.
Likely emergency authorities
There is a clear precedent for Trump to invoke emergency authority to promote power generation and expand the nation’s fuel supply, Schwartz told clients in a research report published last Thursday. Authorities using the powers would waive certain environmental and pollution rules related to energy.
Trump could issue fuel waivers under the Clean Air Act to allow gasoline onto the market that would otherwise violate federal air quality standards, the analyst said. Presidents have often used such waivers whenever they needed to stretch the country’s gasoline supply and keep prices in check, he said.
Trump could also invoke the Federal Power Act to order power plants to run at maximum capacity and not comply with pollution limits, Schwartz said. The energy secretary can invoke the act during wartime or when a sudden increase in demand or a shortage of electricity creates an emergency situation.
The provision has been rarely used since World War II and has mostly been reserved for situations where extreme weather has overwhelmed power plants, Schwartz said.
The largest grid operator in the U.S., PJM Interconnection, has warned of a power shortfall as coal plants are retired faster than new capacity is brought online. PJM operates the grid in all or parts of 13 states, in the Mid-Atlantic, Midwest and South.
The situation could become more acute as electricity demand increases significantly as the tech sector builds out energy-hungry data centers to support artificial intelligence applications.
The first Trump administration considered invoking the act in 2018 to order utilities to buy two years of power from coal and nuclear plants that were at risk of shutting down. The administration at the time ultimately dropped the idea after facing push back from industry.
Trump could also opt for a broader statute that lets the president suspend pollution laws for industrial facilities, power plants, oil refineries, steel mills, chemical plants and other industrial facilities in emergency situations, Schwartz said.
There is less support under federal law for the president to force new production, Schwartz said. Trump could direct federal agencies to fast track environmental reviews on energy projects he supports, such as pipelines, but the president cannot use emergency authorities to circumvent bedrock environmental policies such as the National Environmental Policy Act and the Endangered Species Act, the analyst said.
Expected executive orders
Oil industry lobbyists at the American Petroleum Institute are anticipating that Trump will issue a series of orders tied to energy as soon as Monday.
The administration is expected to issue an order lifting the Biden team’s pause on new liquified natural gas export facilities, Sommers said. The president-elect will also likely try to reverse President Biden’s recent decision to ban drilling in 625 million acres of federal waters. Trump’s authority to do this has been disputed and such an order would likely end up in court.
“We are of the view that he has the ability to reverse that and we’ll defend that in court,” Sommers said.
The industry is anticipating the president will also direct the Interior Department to increase oil and gas lease sales in the Gulf Mexico, Sommers said. The Biden administration had issued the fewest leases in history under a program set to run through 2029.
These decisions are not expected to have any immediate impact on production. The U.S. has been the world’s largest producer of oil and gas for six years, outpacing Saudi Arabia and Russia. The CEOs of Exxon and Chevron have made clear that production decisions are based on market conditions, not in response to who is in the White House.
“You can lead a horse to water, but you can’t make them drink,” Schwartz said. “He can give them all the resources they need to be able to drill, but I haven’t seen anything that suggests he can force them to take it out of the ground.”
Trump is expected to withdraw the U.S. from the Paris climate agreement. Executive orders targeting tailpipe emission and fuel economy standards for cars are also expected.
Still, only so much can be done through executive order, Sommers said, and the directives often have to go through a rulemaking process that takes time. The oil industry is more focused on pushing for more durable policy changes in the Republican-controlled Congress, he said.
“There’s not a lot of stuff that they’re going to be able to do on day one, other than direct federal agencies to fulfill their promise of energy dominance,” Sommers said.
With the winter in full swing, it’s easy to spend most of the time indoors, but if you’re still looking to scratch that itch to get out and spend more time outside exploring, the XQi3 by NIU is the perfect solution to explore both trails and urban spots. On top of NIU designing the XQi3 with some great handling for off-road riding, it’s also fully street-legal.
It’s always a blast to be out in the trails enjoying nature but for urban areas, there’s usually a lot to explore and luckily the XQi3 is able to be registered as a moped. NIU has an EKHO Dealer collab that enables NIU to sell licensed and registered vehicles to customers directly, making it easy to ride off with a fully compliant street-legal bike.
Before we get into how it handles off-road let’s go through some of the quick specs.
The XQi3 has a top speed of 45 km/h for street-legal use and up to 80 km/h for off-road. Powering the bike is a removable 72v 32ah LG lithium-ion battery, which gives you a max range of 90km on a single charge, of course, that will vary depending on if you are in eco or sports mode, but it’s certainly plenty of range to explore new trails or new sites without having range anxiety, and since it is removable, you’ll be able to charge it anywhere, anytime.
Okay, now that we got some of those specs out of the way, it’s time to dive into one of the most exciting aspects about this bike which is just how great the handling feels while riding off road. This probably won’t be listed on a spec sheet but the wide grippy seat and overall design of this bike makes it very functional as an offroad bike.
NIU made this bike for riders to actually use offroad and one of the obvious signs of that is the stock skidplate that they added for more protection.
While the lightweight feel and torquey motor give a ton of confidence while riding, knowing that the bike is robust enough for this kind of riding is encouraging for trying out new sections that would normally feel intimidating.
And with that extra level of protection dropping the bike is not as worrying as you might think making it easy to pick up the bike, and continue riding just as you would on any other powersports bike.
As for the suspension the XQi3 uses adjustable front and rear KKE suspension that lets you fine-tune the compression, rebound, and preload depending on your size and what kind of riding you intend to do.
While riding through roots and loose dirt the 19-inch off-road tires hold up surprisingly well and with the tread patterns not being too aggressive it’s a great balance between traction and durability since very aggressive tread patterns typically wear out fairly quickly when using them on the tarmac.
And to brake the XQi3 features 203 mm rear disc brakes and 220 mm front disc brakes giving some great braking action for both on and off-road action.
NIU also added some great tech onto the XQi3 which includes seamless app connectivity via Bluetooth letting you unlock a world of features from monitoring your battery and vehicle status to tracking your route history.
In addition NIU is the only company in the category that has the ability to send out OTA updates.
For security the bike uses an NFC card to unlock but can also be unlocked via bluetooth.
And through your controls as well as the display you can navigate to eco or sport mode and you can also use the Ultraboost to get you up to 8000W up from the 3500W of rated power. Through the display you’ll also be able to check your battery level, speed, lap times and more.
For added safety, NIU included an emergency kill switch where if disconnected, the feature will automatically cut off power to the motor just in case of any emergency.
For those unfamiliar with NIU, the brand is now celebrating their 10 year anniversary and with that they’ve announced that the brand will be starting assembly in the US and is soon entering into the powersports segment .
Overall this is a great feeling offroad bike that is fully street-legal and comes with all the requirements to be fully compliant as a road-legal moped. I had a ton of fun exploring
With the XQi3, the premium build quality, long range, and flexibility make it a blast to go out even if it’s the middle of winter.
To check out NIU on socials you can find them @niumobility and for more of their lineup you can check out their website here.
NIU XQi3 gallery
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