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What the EV Tax Credit Ending Means for Your Lease Buyout

Lease End

Adam Broud

Published 10/6/25

Financing
Estimated Read Time: 6 minutes
TL;DR: The federal EV tax credit of up to $7,500 ended September 30, 2025. For drivers leasing an electric vehicle, this expiration may have affected both your wallet and your lease-end decision.
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The federal EV tax credit has been a game changer for drivers. Worth up to $7,500, it helped make electric vehicles more affordable. Dealers and leasing companies often rolled the credit into lease deals, lowering monthly payments.
But here’s the catch: once the credit expires, new EV leases and purchases will no longer benefit from that federal discount. Which means future leases may cost more, and the resale market could shift too.
If you already lease an EV, you may be sitting on unexpected equity—especially if your residual value (the predetermined buyout price in your contract) is lower than the current market value.

How the EV Tax Credit Expiration Impacts Auto Lease Buyouts

So what happens when the EV tax credit ends? Here are the key points:
  • Leased EVs may retain more value. Without new credits, used EVs could stay in high demand. That could make your leased car worth more than the buyout price, leaving you with positive equity.
  • Future EV leases may be pricier. Losing the credit means higher monthly lease payments for new deals. Buying out your current EV could actually be cheaper than starting a new lease.
  • More drivers may buy instead of lease. As the credit disappears, leasing loses one of its biggest perks. Many drivers will choose ownership—meaning competition in the used EV market will heat up.

Should You Buy Out Your EV Lease Before the Tax Credit Ends?

Here’s where the math comes in. If your EV’s market value is higher than your lease buyout amount, you’re looking at equity. That’s instant value you can keep by buying your car.
Example:
  • Residual value in your contract: $28,000
  • Current market value: $33,000
  • Equity if you buy: $5,000
If you return the car, the dealer pockets that equity. If you buy it out, you keep it.
Lease End makes this process simple with our AI-powered calculator. Enter your license plate or VIN, and you’ll see your buyout numbers instantly.

Pros and Cons of Buying Out Your EV Lease

Let’s break it down.
Pros:
  • Lock in equity before used EV prices shift.
  • Avoid higher monthly payments on new leases.
  • Keep an EV you already know and trust.
  • Skip dealer markups and lease-end fees.
Cons:
  • Sales tax and title fees still apply.
  • Financing rates vary depending on credit.
  • Some EVs depreciate faster than others, so equity isn’t guaranteed.

How Lease End Helps with EV Lease Buyouts

If you decide buying out your EV lease is the smarter move, Lease End can:
  • Show you real-time payoff quotes with Automatic AI.
  • Connect you with the best lease buyout loan rates available.
  • Handle all DMV paperwork (so you’re not standing in line while everyone else is figuring out the tax credit deadline).
  • Keep the process transparent, with no hidden dealer markups.

Final Thoughts: Don’t Wait Too Long

With the EV tax credit ending September 30, 2025, the clock is ticking. If you’re leasing an electric vehicle, this is the perfect time to run the numbers on a lease buyout. You might save thousands by locking in equity today instead of rolling into a pricier lease tomorrow.
Ready to check your EV lease buyout options? Lease End makes it fast, easy, and 100% online.

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About the author
Adam Broud

Adam Broud is a writer and comedian based out of Salt Lake City, Utah. As a professional stand-up comedian with an MBA, his writing uniquely blends the worlds of business and comedy. Adam's writing for ads and comedy has appeared in places such as Buzzfeed, Vanity Fair, your television, and his mom's box of keepsakes. Feel free to review his writing from any of those places, but just know it's kinda weird if you choose his mom's house.

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