For years, the federal tax credit was the golden ticket for anyone buying a new electric vehicle. But as of October 1, 2025, that incentive is gone for new purchases. If you’ve been waiting for the right time to go electric, you might be wondering: is it still worth it? The answer is a resounding yes—especially if you’re considering a lease.

Why Leasing Is Now the Smartest Way to Drive an EV

The end of the federal EV tax credit for purchases has left many buyers feeling discouraged. But here’s the twist: leasing an EV has never been more attractive. While the credit no longer applies to leases signed after September 30, 2025, automakers and dealers have responded with aggressive lease deals, manufacturer incentives, and bundled rebates that can still deliver significant savings.

How Lease Deals Are Filling the Gap

With the federal credit gone, automakers are stepping up to keep EVs competitive. For example, Hyundai is offering the 2025 IONIQ 6 for as low as $268 per month on a 36-month lease, while Ford’s Mustang Mach-E is available for $299 per month. These deals are possible because manufacturers are absorbing some of the cost to maintain demand and clear inventory.

Other brands are following suit. Audi is offering up to $25,000 in rebates on select models like the RS e-tron GT, and Kia is providing $10,000 in incentives on the EV6 and Niro EV. These rebates are often available for both purchase and lease, meaning you can still benefit even if you’re not buying outright.

State and Utility Incentives: The Hidden Savings

While the federal credit is gone, many states and local utilities still offer rebates and incentives for EVs. California, for instance, continues to provide a $2,000 rebate for new EVs, and some utilities offer additional discounts for charging equipment or reduced electricity rates. These incentives can be claimed at the time of purchase or lease, and in some cases, they’re applied directly to your monthly payment.

Tesla, for example, offers a $3,500 rebate for the purchase or 36-month lease of new or pre-owned vehicles under $55,000. This rebate is available in addition to any state or utility incentives, making Tesla leases particularly attractive in 2025.

How to Maximize Your Savings

To get the best deal, start by researching the latest lease offers from major brands. Compare not just the monthly payment, but also the total cost of the lease, including any upfront fees, mileage limits, and end-of-lease charges. Look for deals that include manufacturer rebates, as these can significantly reduce your monthly payment.

Next, check what state and local incentives are available in your area. Many states have online tools to help you find eligible rebates and tax credits. Don’t forget to ask your dealer about any additional discounts or promotions—they may have unadvertised offers that can save you even more.

Expert Tips for Negotiating Your Lease

Dealerships don’t always honor advertised lease deals, so be prepared to negotiate. A salesperson might start with a higher monthly payment as a negotiating tactic, but you can often get a better rate by comparing offers from multiple dealers. Be sure to ask about every line item on the paperwork, including fees and charges.

Some lease deals are limited to specific trim levels or option packages, so adding extras like a sunroof or bigger wheels can increase the price. Stick to the advertised package to get the best deal, or negotiate for the extras you want.

What to Watch Out For

While leasing can save you money, there are a few things to watch out for. Make sure you understand the mileage limits and any fees for going over them. Also, check the end-of-lease charges for wear and tear, as these can add up if you’re not careful.

Finally, be aware that some incentives may not be available for leases, so always confirm the details with your dealer before signing anything.

Real-World Examples: What’s Available Now

Here are some of the best lease deals available in November 2025:

• Hyundai IONIQ 6: $268/month for 36 months
• Ford Mustang Mach-E: $299/month for 36 months
• Audi RS e-tron GT: Up to $25,000 in rebates
• Kia EV6: $10,000 in incentives
• Tesla Model 3: $3,500 rebate for 36-month lease

These deals are subject to change, so act quickly to lock in the best rates before inventory runs out.

Conclusion: Leasing Is Still the Best Way to Go Electric

The end of the federal EV tax credit doesn’t mean the end of savings. By leasing an EV, you can still take advantage of manufacturer incentives, state and utility rebates, and aggressive lease deals that make driving electric more affordable than ever. With the right research and negotiation, you can drive home in a new EV for less than you might think.

Ready to make the switch? Start by comparing the latest lease offers and checking what incentives are available in your area. With the right deal, leasing an EV in 2025 can be the smartest financial move you make all year.