Leasing accounted for 70% of EV transactions in July, up dramatically from 10% in 2022, as buyers rushed to capture up-to-$7,500 federal tax credits before they expire. Purchasing allows the credit only for specific EVs that meet critical mineral sourcing and income requirements, while the leasing loophole lets lessees claim the credit regardless of vehicle or battery origin. A pending law eliminated the credit and loophole with a Sept. 30 deadline, pushing EV consideration rates to a July peak of 17.10% and slightly lower by late August. Automakers pushed lease deals to attract first-time EV shoppers; many buyers remain unaware of affordable lease options.
Electric vehicle leasing hit the stratosphere in July, thanks to a growing number of car buyers who scrambled to claim the federal tax credit ahead of its Sept. 30 demise. Leasing accounted for 70% of EV transactions in July, compared to just 10% in 2022, analysts from the car-buying website Edmunds said Wednesday. That's slightly below last year's record high of 80%, but still underscores that shoppers are racing to grab the up-to-$7,500 incentive while they can. And they're going the leasing route for that.
Purchasing an EV outright allows you to claim the tax credit on a limited number of EVs, which InsideEVs has listed here. These EVs have to meet strict critical mineral sourcing requirements for the high-voltage battery and are subject to individual income limits. The so-called leasing loophole, by contrast, allows customers to claim the credit regardless of where the car or its battery is made.
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