EV Lease vs Buy Calculator
Compare the 3-year cost of leasing an EV versus buying — including the value you walk away with.
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How this comparison works
Leasing and buying have very different math. Leasing is essentially long-term renting — you pay for the use of the car and walk away at the end with nothing. Buying costs more up-front and during the loan, but at the end you own a depreciated car you can sell. To compare them honestly, we look at the net cost over the same period — subtracting the value of what you own at the end.
Worked example
Three years of a $450 lease with $3,000 down: $3,000 + (450 × 36) + $350 disposition = $19,550 spent, nothing owned. Three years of a $587 loan with $5,000 down: $5,000 + (587 × 36) = $26,132 spent, but at the end you own a car worth $18,000 — so net cost is $8,132. Buying wins by about $11,400 in this scenario.
When leasing actually wins
- You turn over cars every 2–3 years anyway. The hassle and depreciation of selling each time can erase the buy advantage.
- You want the latest tech. EV tech is moving fast — leasing locks in a 3-year window with no obligation to keep an older model.
- The lease deal includes a verified incentive. If the lessor confirms in writing that a specific incentive reduces your payment, include it in your comparison. Do not assume one is included; the federal commercial credit is not available for vehicles acquired after September 30, 2025.
- Battery uncertainty. If you're worried about a particular EV's battery longevity, leasing means it's the leasing company's problem after 3 years.
When buying wins
- You keep cars 5+ years (the math compounds in your favour every year past the loan).
- You drive a lot of miles (lease mileage overage fees of $0.15–0.25 per mile add up fast).
- You want freedom to modify the car or sell it whenever.
This estimate uses a $350 disposition fee on leases, which is typical. Real lease contracts include acquisition fees, mileage caps, wear-and- tear charges, and a tax structure that varies by state. For a final decision, get the actual lease disclosure (LH-2 in the US) and a financed-purchase quote with all fees from your dealer.
The IRS says the commercial clean vehicle credit is not available for vehicles acquired after September 30, 2025, and a later placement in service does not change that (IRS: commercial clean vehicle credit, read October 15, 2026). The personal credits have the same acquisition cutoff (new, used). Whether a particular lease quote includes any other incentive is a question for the lessor, in writing.
Frequently asked
In most cases, does leasing or buying an EV come out cheaper?
Over 5+ years buying almost always wins because you end up owning a depreciated but valuable asset. Over 2–3 years leasing can be competitive, depending on the lease terms you are quoted. Ask the lessor in writing whether the quoted payment includes any incentive and what happens if it is not available.
What does "disposition fee" mean?
A fee charged at lease-end to cover the cost of inspecting, cleaning, and reselling the car. Typical: $300–500. This calculator uses $350 as a standard estimate. Buying out the lease at the end usually waives the fee.
What about lease mileage caps?
Standard EV leases cap at 10,000–15,000 miles/year. Going over costs $0.15–0.25 per mile at lease-end — often hundreds or thousands of dollars. If you drive 18,000+ miles a year, buying is almost always the better call.
Can I get the federal tax credit on a lease?
Do not assume so. The IRS says the personal new and used clean vehicle credits and the commercial clean vehicle credit are not available for vehicles acquired after September 30, 2025 (sources are linked below the calculator). Whether any other incentive is in a lease quote is a question for the lessor; ask in writing.
Are insurance and registration the same when leasing vs buying?
Insurance is usually similar (some lessors require slightly higher coverage). Registration and sales tax differ by state — some tax leases on monthly payments rather than full vehicle value. Get specific numbers from the dealer for your state before deciding.