Today, Volkswagen and Audi announced a new $7,500 lease incentive on every electric vehicle (EV) and plug-in hybrid (PHEV) they sell in the US, including:

• Volkswagen ID.4

• Audi Q4 e-tron

• Audi Q5 55 TFSI e quattro (PHEV)

• Audi e-tron (SUV)

• Audi e-tron GT

The new $7,500 EV Lease Bonus Cash is valid through January 31, 2023, although there is a possibility VW and Audi will continue the incentive for the foreseeable future.

At present, the following makes also offer the same $7,500 lease cash incentives:

Chrysler

• Chrysler Pacifica Hybrid

Jeep

• Jeep Grand Cherokee 4xe

• Jeep Wrangler 4xe

Mercedes-Benz

• Mercedes-Benz EQB

• Mercedes-Benz EQE

• Mercedes-Benz EQS

Volvo

• Volvo C40 Recharge

• Volvo XC40 Recharge

• Volvo XC60 Recharge

• Volvo XC90 Recharge

Why is this a big deal?

This incentive is great news for folks who do not qualify for the $7,500 EV federal tax credit because they exceed the income cap ($150,000 for individuals or $300,000 for married couples) — or those who do not have enough tax liability to take full advantage of the tax credit, such as retirees.

Moreover, the $7,500 lease incentive applies to several models that do not otherwise meet the North American assembly requirement, or MSRP cap ($55,000 for a passenger car or $80,000 for a truck, SUV, or van), of the new EV federal tax credit.

For example, VW Credit is offering the $7,500 lease incentive on the 2022 Volkswagen ID.4, despite it being assembled in Germany and not qualifying for the $7,500 federal tax credit. (The 2023 ID.4 is built in the USA and does currently qualify for the $7,500 federal tax credit.)

How does the lease incentive work?

The $7,500 EV Lease Bonus Cash is applied as a capitalized cost reduction towards the lease of a vehicle.

If you planned on purchasing the vehicle, we suggest first leasing the car to take advantage of the incentive, and then buying out the vehicle immediately to save on the hefty finance charges currently being charged by VW Credit and Audi Financial Services on leases. (Tip: First Republic offers a low APR Personal Line of Credit that may be ideal for lease buyouts.)

For incentive data on all cars, be sure to check out Rate Findr — the only place where consumers can look up both lease and finance rates and rebates on demand.