USA: Over 90% of German EVs were leased in Q1 2024

Audi, BMW & Mercedes-Benz have the highest EV lease rates in the US in Q1 this year.

As per data from J.D. Power, almost every electric vehicle sold by either Audi, BMW or Mercedes-Benz in Q1 this year was leased.

Prices for German EVs in the USA range from $51,000 to $200,000 which disqualifies them from the $7,500 federal tax credit when being financed. However, due to a loophole in the Inflation Reduction Act, a lease is classified as a "commercial business" making it eligible to get the full $7,500 tax credit. Thanks to this, people in the market for a German EV are leasing the vehicle rather than buying it outright.

The reports state, the three German car brands, have the highest EV lease rates in the US in Q1 this year. The data mentions that 94% of Audi EVs were leased, while Mercedes-Benz leased 93% of its EVs and BMW leased 89%.

The financial services' VP of sales & marketing for Mercedes-Benz, stated, "The only true difference between the programs currently is the tax incentive offered for leases."

Reports though also suggest that despite the EVs getting the full tax credit, the leasing cost over three years is still $1,800 more than its ICE-powered counterpart.

Source: AutomotiveNews