Electric vehicle lease cheaper than leasing or buying gas-powered model

Energy Innovations found that monthly lease payments for EVs could be up to $500 cheaper than those for comparable gas models

A new study claims that an electric vehicle lease is more affordable than purchasing or leasing a gas-powered car.

Car prices have risen steadily since the COVID pandemic, as the automotive industry has grappled with supply shortages and production disruptions. The average cost of a new vehicle in July was $48,334, $200 higher than in 2022. However, while EVs are still more expensive than the average cost of a new car, prices in the segment have trended the opposite direction in the same timeframe, hitting $53,469 from $65,108 last July. Coupled with federal and state sponsored incentives, drivers can now save substantial amounts by opting for an electric vehicle lease when making their next car purchase.

Researchers from Energy Innovations compared monthly costs for an electric vehicle lease to both lease and loan payments for comparable gas-powered cars. Out of the 14 models studied, an EV lease was cheaper than either option, with drivers seeing up to $500 in savings from some brands. Government tax incentives, namely the Inflation Reduction Act’s $7,500 EV credit, drive costs down even further, decreasing monthly payments by up to 12%.

Leases are an often overlooked alternative to traditional car purchases and have dropped even further off consumer radars since the COVID pandemic. Speaking to CBT News in June, Kevin Tynan, automotive analyst for Bloomberg Intelligence, noted that the 2022 car market saw a lease penetration rate of only 18% compared to 28% in 2018. However, given the potential savings of an electric vehicle lease, not only do dealers have the opportunity to expand their leasing business, but they can also help accelerate the EV transition. Retailers may want to leverage this option in the coming months while prices continue to fall.

Stay up to date on exclusive content from CBT News by following us on Facebook, Twitter, Instagram and LinkedIn.

Don’t miss out! Subscribe to our free newsletter to receive all the latest news, insight and trends impacting the automotive industry.

CBT News is part of the JBF Business Media family.

Colin Velez
Colin Velez
Colin Velez is a staff writer/reporter for CBT News. After obtaining his bachelor’s in Communication from Kennesaw State University in 2018, he kicked off his writing career by developing marketing and public relations material for various industries, including travel and fashion. Throughout the next four years, he developed a love for working with journalists and other content creators, and his passion eventually led him to his current position. Today, Colin writes news content and coordinates stories with auto-industry insiders and entrepreneurs throughout the U.S.

Related Articles


Manufacturers In This Article

More Manufacturer News

Latest Articles

From our Publishing Partners