New State Program Could Make Lease Payments For Electric Vehicles Less Than $100 Per Month

Last week, The Washington State Department of Commerce announced a new state program that will make driving electric vehicles (EV) more affordable to many Washington residents. Governor Jay Inslee and Washington State Department of Commerce Director Mike Fong previewed a $45-million program that will offer instant rebates to eligible residents purchasing or leasing an EV beginning in August 2024.

According to Department of Commerce Assistant Director Michael Furze, this rebate program aims to make electric vehicles more accessible and affordable for families across Washington State by instantly decreasing the cost of EVs right at the point of sale, which helps eliminate upfront cost barriers for many families.

The main goal behind the making of the program is to make EVs more accessible for low-income drivers, which will also help lower greenhouse gas emissions in the state. The rebate is available for eligible consumers for both the purchase or lease of a new or used EV.

“Washington state is already a leader in EV adoption, but many more people interested in ditching the gas pump may think they can’t afford to do it,” Gov. Inslee said. “With these new rebates, we’re significantly lowering the entry point, opening the door to EVs for people of modest incomes as we continue paving the way to a clean transportation future for all.”

“Electric vehicles are not only a necessary part of that solution, but they are also more affordable in the long run, making this a win for both low-income families and for the climate,” says Furze. “We have heard from communities across the state that upfront price was the biggest barrier for them getting an electric vehicle. We designed this program to be impactful enough to significantly reduce the monthly cost of a vehicle and get families into an EV that will continue to benefit them and their communities.”

Washington is the first state to prioritize low-cost leases as part of an EV incentive program. Under the new program, Washington residents earning up to $45,180 annually for a single person or $93,600 for family of four, are eligible to receive up to a $9,000 instant rebate for a new EV lease of three years or more, which, according to state officials, could make lease payments on some currently priced EV models less than $100 a month with no down payment for qualifying consumers.

“The total program offers $45 million for rebates. Eligible Washington residents can get up to $9,000 for a new EV lease of three years or more, or up to $5,000 for new EV purchases or two-year leases. Used EVs are also eligible for a $2,500 rebate on both purchases and leases,” says Furze. “This program is a simple point-of-sale rebate, so families aren’t on the hook for the rebate amount until it is paid out.”

Although eligible vehicles are capped at $90,000, with the size of the rebate that will be provided dealerships are able to provide multiple car choices for most drivers who qualify.

“The price cap was set so that there was a large variety of vehicles to choose from, which would meet the needs of different participants based on range, size, and price,” says Furze.

“This program will help close the gap of EV adoption and continue to decrease the dependency on harmful and expensive fossil fuels,” says Furze. “With where the EV market is now, there is a variety of vehicles to meet the needs of different drivers, making this program that much more impactful.”

Governor Inslee proposed a new EV incentive program in the 2022 legislative session and the funds were appropriated to Commerce to start and run this program through 2025. With the cost of living in today’s economy being relatively high, and the monthly cost of lease payments following closely behind, the legislature required Commerce to prioritize low-income communities when creating this program.

As a result, state leaders believe this program is vital to helping low-income families access vehicles that are less expensive to drive, will contribute to cleaner and healthier air for our state, and save on their overall cost of driving a car.

“Gas is also expensive in Washington, and EVs are much more affordable to charge due to Washington’s low-cost electricity. EVs also have far less maintenance costs and requirements over the vehicles’ lifetime. This program will help families access affordable monthly payments and continue to decrease their dependency on rising fuel costs,” says Furze.

With the new inclusion of this rebate program in August, there is the potential to see rising trends in EV purchases across the state. Complications like harmful air pollution and financial issues that low-income drivers may experience can be resolved with the help of Washington State, being the first-ever state to prioritize low-cost leases.

“Once folks see how easy electric vehicles are to charge and how much less money they would be spending on gas, we hope that more folks will take advantage of the program and be more comfortable about making an electric vehicle their next vehicle purchase,” says Furze.

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