Toyota is already offering low lease rates on its first mass-market EV. According to incentive bulletins sent to dealers, the 2023 Toyota bZ4X is eligible for interest rates as low as 1.9% APR. However, there are some unanswered questions that may have a significant impact on whether the bZ4X is good or bad to lease.
Starting this month, all versions of the 2023 Toyota bZ4X offer a money factor of 0.00081, which is equivalent to a lease rate of 1.9% APR. The pricing is based on top-tier credit, which Toyota Financial Services calls Tier 1+. Toyota bZ4X lessees can get the same rate whether they choose a 24 or 36-month lease term.
However, this alone doesn't give us a full picture of bZ4X lease incentives. First, we don't have information yet on whether or not
Toyota is passing along the full value of a $7,500
federal tax credit in the form of
lease cash. A surprising number of EVs are not doing so, such as the new
Hyundai IONIQ 5 and
Ford Mach-E.
Earlier this year, it was reported that Toyota may be
running out of tax credits. If that proves to be the case, the bZ4X could have a big disadvantage compared to vehicles like the
Kia EV6 and
Volkswagen ID.4, which remain eligible. As a result, bZ4X buyers could miss out on an important EV incentive by mere months.
A Toyota spokesperson did not immediately respond to a request for clarification on that point. Second, we haven't seen bZ4X
residual value data yet, and it's unclear if the 100%-electric crossover will have a high residual value or a low one. EVs have traditionally had lower residuals than their gas-powered counterparts.
For now, a lease rate equivalent to 1.9% APR could be a good starting point, but it doesn't tell us the whole story. After all, Toyota hasn't even announced MSRP pricing. Having said that, leasing the bZ4X may be a better deal than buying given the fact that Toyota has no rebate deals yet or promotional financing rates.