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You can get a great deal on an EV right now — if you know where to look

Nora Naughton   

You can get a great deal on an EV right now — if you know where to look
  • Leasing deals abound for EVs this month.
  • Leasing an EV can get you more access to the $7,500 federal discount.

If you want a deal on an electric car this summer, you just need to know where to look.

EV prices have come down from their peak in the summer of 2022, but remain volatile. Expensive new offerings like Tesla's Cybertruck drove up the average price paid for an EV last month, according to Cox Automotive.

But a closer look at the segment shows plenty of deals to be had among less flashy models, especially if you're willing to lease or are flexible with what you want. Many of these newer models have ranges above 300 miles and can often cost in line with a similar gas-powered car.

The automotive industry is facing a dilemma heading into the summer car shopping season. Electric vehicles are coming off the assembly line in greater numbers, while demand for battery-powered cars is cooling.

That leaves these companies looking to stoke demand without doing too much damage to their bottom line.

Rather than initiating fire sales on all of the EVs that have started to pile up on dealer lots, companies are being more targeted with their incentives. That means using tactics like leasing and financing deals over big cash-back offerings.

EV leasing deals

A lease can be a good option for someone who's curious about electric vehicle ownership but not quite ready to commit.

These deals usually include a lower monthly payment, lower maintenance costs, and bumper-to-bumper coverage for the duration of the lease.

Leasing deals can be found for almost every electric model right now, but the best value appears to be among mainstream brands like Hyundai and Kia which are both offering leasing deals with monthly payments below $300.

According to deals compiled by car shopping website CarGurus, this month you can lease a 2024 Hyundai Ioniq 5 for $242 a month for 24 months with a down payment of $3,507.

If you don't have three grand to drop on a down payment, the Ioniq 6 has a 24-month lease deal for $189 a month with $1,999 due at signing.

Thanks to a loophole, choosing to lease an EV also gives you more access to the $7,500 federal EV tax credit. Automakers can apply to leasing deals on cars that have since become ineligible for the credit on a purchase because they're not built in North America.

Financing deals and the EV tax credit

If leasing isn't your style, you're going to want to look for financing deals. These incentives, which have become more popular as interest rates rise, can help bring down your monthly payment without extending the length of your loan.

This month you can finance a Kia EV6 or a Ford F-150 Lightning with a 0% interest rate for 60 months, according to deals compiled by TrueCar.

If you're looking to purchase an EV rather than leasing, you'll also want to make sure you know which electric cars qualify for the $7,500 federal EV tax credit.

New rules that went into effect at the start of this year narrowed the list of cars that qualify for this government-funded discount, and you may be surprised what was knocked off the list.

Some of the most popular models lost their tax credit eligible status, including US-based brands like Ford's Mustang Mach-E and most versions of the Tesla Model 3.

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