Finance · 7 min read

EV Lease vs EV Purchase TCO

**Leasing an EV** passes federal credit quirks to lessors and caps battery obsolescence risk—you do not own residual value. **Buying** captures tax credits (when eligible), unlimited miles, and long-term savings if you keep the car 8+ years.

Step by step

1. Compare effective payment

Lease money factor vs loan APR after incentives.

2. Model charging cost

Home L2 vs public DC fast-charge mix.

3. Resale / return

EV depreciation is steep—lease shifts risk to lessor.

EV lease vs purchase

Rapid tech change favors leasing for early adopters; stable models favor buy.

  • EV lease: Lower monthly; mileage cap; no resale hassle.
  • EV purchase: Tax credit upside; depreciation risk; unlimited miles.

Common mistakes

  • Ignoring disposition fee on lease
  • Buying without home charging quote

FAQ

Does lease qualify for EV credit?

Often passed through as capitalized cost reduction—read contract.