Buying an electric vehicle just became exponentially more attainable for lower-income households in Washington. The state is prepping an ambitious new “EV Instant Rebates” initiative that provides hefty upfront discounts on EVs for those meeting certain income thresholds.
So how generous are these instantly applied rebates? Try up to $9,000 off the purchase or lease price of a brand spankin’ new EV. Used models, meanwhile, qualify for $2,500 rebates at the dealership when you seal the deal.
But the real game-changer may be Washington’s unique focus on making low-cost EV leasing a viable option for those who’ve never been able to reasonably afford a new car before. Thanks to some creative leveraging of federal EV tax credits (which only apply to leased vehicles, not purchased ones), the state is promising monthly lease payments as little as $56 – and we’re not just talking about compact econoboxes either.
According to the fine print, rebates of up to $9,000 can bring the cost of a three-year Tesla Model 3 lease down to just $127 per month with zero down. Stepping up to the larger Model Y? A mere $207 monthly with that hefty rebate applied. That’s the kind of sticker pricing that could open up EVs to income brackets automakers have largely ignored up until now.
The Washington Department of Commerce, which is overseeing the program, says it will have between $16.8 million to $21 million in funding to dole out up to 8,000 of these upfront rebates when it kicks off in August. Eligible households will need to meet some income limits (below $94,000 for families, $45,000 for singles), though the vehicle price cap of $90,000 MSRP is refreshingly high.
Stacking the new rebates on top of Washington’s existing tax exemptions for new and used EVs further sweetens the deal. Will these aggressive incentives reshape the EV-buying landscape in the state and make electrified transportation viable for more working-class buyers? Automakers will surely be watching the early returns with great interest.