For drivers weighing the leap to an electric vehicle (EV), August 2025 has become a pivotal moment. Across both the United States and the United Kingdom, a swirl of market forces, policy changes, and competitive pressures have produced a rare window of opportunity—one that may soon slam shut. With tariffs, tax credits, and storage issues all in play, automakers are rolling out their most aggressive lease deals in years, hoping to entice buyers before the landscape shifts dramatically.
In the United States, the EV market is feeling the squeeze from two sides. As reported by Electrek, a 25% tariff on imported EVs is already in effect, putting upward pressure on costs for many popular models. Meanwhile, the federal tax credit—a crucial $7,500 incentive for EV leases—will disappear after September 30, 2025. This looming deadline has set off a frenzy among automakers and consumers alike, with manufacturers slashing prices and stacking incentives to move inventory while the financial math still works in buyers’ favor.
“Time’s ticking for snagging a great EV lease deal,” Electrek noted, underscoring the urgency. Several automakers have responded with headline-grabbing offers, some of which are unprecedented in their generosity.
Honda, for instance, is making waves with its 2025 Prologue all-electric SUV. In select states—specifically California and other CARB (California Air Resources Board) states—Honda is offering a so-called One Pay Lease: plunk down $4,800 upfront, and you drive the Prologue for 24 months with no monthly bills. For those not ready to pay all at once, there’s a more familiar option: $159 per month for 24 months, with $1,099 due at signing. Either way, as Electrek points out, “the Prologue ranks among the cheapest new electric SUVs to lease right now.” There are some strings attached, though. These deals require a $3,500 loyalty or conquest bonus, meaning customers must already be leasing a Honda or be willing to trade in a competitor’s model. And crucially, the deals rely on the so-called EV lease loophole to pass through the $7,500 federal tax credit—a benefit that vanishes at the end of September.
Volkswagen is not to be outdone. The 2025 Volkswagen ID.4 Pro RWD is now available for $129 per month for 24 months, with 10,000 miles per year. According to Electrek, this is “practically interest-free,” with up to $9,250 in lease cash incentives depending on trim level. The effective cost is just $233 per month—$264 less than previous offers. This deal, too, is set to expire on September 30.
Hyundai has also joined the fray with compelling offers on two of its flagship EVs. The 2025 Hyundai IONIQ 5 SE Standard Range can be leased for $149 per month for 36 months, with $3,999 due at signing—an effective monthly cost of $260, nearly $100 less than what was offered just a month prior. For those seeking more range, the SE Long Range is available for $189 per month under similar terms. These deals are available in Southern California through September 2, 2025.
The 2025 Hyundai IONIQ 6 SE Standard Range is another standout, leasing for $169 per month for 24 months with $3,999 due at signing. Hyundai is stacking up to $11,750 in lease cash on this model, plus an additional $1,000 inventory coupon for vehicles that have been on the lot for 180 days or more. These offers are valid through September 2, providing a narrow window for bargain hunters.
Subaru, meanwhile, is offering the 2025 Solterra for $279 per month for 36 months, with a mere $279 due at signing—an effective monthly cost of $287. As Electrek observes, this is “an incredible deal for an all-electric SUV with an MSRP pushing $40,000,” especially when compared to the 2025 Honda CR-V Hybrid, which carries an effective monthly cost of $486.
But the clock is ticking. The disappearance of the federal tax credit on September 30 will likely send lease prices soaring. As Electrek warns, “once that disappears on September 30, expect prices to jump. At that point, buying might make more sense than leasing.” For consumers, the message is clear: act now or risk paying much more later.
Across the Atlantic, British motorists are experiencing a different kind of EV lease bonanza—one driven not by tax credits, but by a glut of supply and flagging demand. According to a recent report by The Times, cited by Reuters, Tesla has almost halved its monthly lease fees for electric vehicles in the UK compared to a year ago. The reason? Tesla is offering discounts of up to 40% to car leasing companies, desperate to move inventory as sales slump and storage space runs short.
“Tesla has been forced to offer discounts of up to 40% to car leasing companies to shift more units,” Reuters reported, summarizing the findings from The Times. The situation is acute: Tesla’s July 2025 sales in the UK fell a staggering 60% to just 987 units, according to the Society of Motor Manufacturers and Traders (SMMT). Overall new car registrations in the UK declined by about 5% year-on-year in July, reflecting broader market headwinds.
Despite these challenges, there are signs of resilience in the UK’s EV sector. Battery electric vehicles are now projected to account for 23.8% of new registrations in 2025, up slightly from the SMMT’s previous forecast of 23.5%. It’s a modest bump, but one that suggests the market for EVs remains on an upward trajectory, even as individual brands like Tesla struggle.
The discounts and deals are not without their complications. In the UK, the dramatic price cuts are a response to unique pressures—overstocked lots, insufficient storage, and a sudden drop in demand. In the U.S., it’s the impending loss of federal incentives and the imposition of tariffs that have automakers scrambling to make their vehicles attractive before the window closes.
For consumers in both countries, the message is the same: the current deals are unlikely to last. Whether driven by policy deadlines, inventory woes, or shifting market forecasts, the bargains on offer this August represent a fleeting moment in the fast-evolving EV landscape.
As the September 30 deadline approaches in the U.S., and as Tesla and others in the UK navigate their own challenges, drivers have a rare opportunity to secure an electric vehicle at a price that may not be seen again for some time. For those on the fence, it’s decision time—and the stakes have rarely been higher.
With market forces shifting and incentives set to expire, the summer of 2025 stands out as a turning point for electric vehicle adoption on both sides of the Atlantic. The next chapter, it seems, will be written by those who act before the deals are gone.
