EV Lease vs Buy Calculator
Detailed Comparison
Full lease vs buy comparison with tax credits and residual value
Quick Comparison
Simplified lease vs buy with fewer inputs
Formula
Buy Cost = (Monthly Payment × Term) + Down Payment − Tax Credit − Residual Value; Lease Cost = (Monthly Lease × Term) + Due at Signing; Monthly Payment = P × r(1+r)^n / ((1+r)^n − 1)
Frequently Asked Questions
Is it better to lease or buy an electric vehicle?
It depends on your situation. Leasing often has lower monthly costs and lets you upgrade every few years as EV technology improves. Buying is better long-term since EVs have low maintenance costs and you benefit from tax credits directly. If you drive a lot, buying avoids mileage penalties.
Can I get the federal EV tax credit if I lease?
When you lease, the leasing company (not you) technically claims the federal tax credit. However, many lessors pass some or all of that savings through as a reduced lease price or cap cost reduction. Always ask the dealer how the credit is applied.
How does EV depreciation compare to gas cars?
EVs have historically depreciated faster than gas cars, though this gap is narrowing with popular models like Tesla. Battery longevity concerns drive some depreciation, but newer EVs with better batteries are holding value better.
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