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If you\u2019re sold on everything about EV ownership except the cost of entry, you\u2019re in luck. We\u2019re about to see a massive flood of off-lease electric cars hit the U.S. market\u2014and pretty much all at once. Why? The short version is that a combination of both pro- and anti-EV policies in the U.S. drove a rapid expansion of insanely good lease deals in certain pockets of the country. As those deals expire, the sheer volume of available used cars will fan the flames of a smoldering buyer\u2019s market<\/a> that could prove difficult for cost-conscious buyers to ignore. <\/p>\n As I noted above, there are several factors playing into the creation of this cheap EV glut, but the main driver was the Inflation Reduction Act (IRA) of 2022<\/a>. That law created a new (and now short-lived) framework of EV subsidies that largely benefited domestic manufacturing<\/a>\u2014especially for shoppers who were purchasing or financing a car outright. <\/p>\n These subsidies lowered the final purchase prices for customers and helped depress both new and used electric car values, but purchasers tend to hold on to their vehicles longer, so the impact of these subsidies on the secondary market is pretty limited. But leases? That\u2019s a whole different story. <\/p>\n \u201cThere were a lot of crazy cheap lease deals over the last two years as automakers took advantage of [a] leasing loophole in the IRA,\u201d said Sam Abuelsamid, Vice President of Market Research at Telemetry. <\/p>\n \u201cLeases were considered \u2018commercial vehicle\u2019 sales and not subject to North American content requirements. As a result they stacked federal and state incentives in places like Colorado to offer $10\/month deals on Nissan Leaf and $0 on Fiat 500e as well as lots of great leases on other brands in California and elsewhere.\u201d<\/p>\n