Kia is one of the first automakers whose vehicles’ batteries are not made in the U.S. to announce how it will deal with the government’s new EV incentives. Customers who lease will be able to benefit from federal tax rebates, while buyers will benefit from Kia’s own incentives.
The Korean carmaker announced today that it will introduce a $7,500 lease discount or a $3,750 finance bonus to people interested in purchasing the 2023 Kia EV6.
The bonus for lessees will be applied as a capitalized cost reduction on the lease of a 2023 EV6 for well-qualified customers, Kia says. From now until July 5, 2023, those approved by Kia Finance can drive an EV6 Wind RWD for $499 per month, on a 36-month term, with $4,999 down.
Read: How To Get A $7,500 Tax Credit On Almost Any EV Lease Thanks To An IRA Loophole
Kia’s electric vehicles, including the EV6, are eligible for federal incentives when leased. Automakers that do not manufacture their batteries in the U.S. can apply the incentive to the lessee’s monthly payment, which is the case here. However, according to the EPA, Kia EV6 buyers do not qualify for federal incentives.
As stipulated by the Inflation Reduction Act (IRA), new EV buyers are only entitled to $3,750 in incentives if their new EV has a battery that is assembled in the U.S., and another $3,750 if the majority of the minerals in the battery were sourced from North America, or one of the United States’ trading partners. Kia’s vehicles do not qualify under those conditions, and the introduction of the IRA has been a point of contention between the U.S. and nations such as Korea.
In response, Kia is introducing its own $3,750 incentives to the price of a new car. Well-qualified buyers are eligible for that amount as a standard-rate finance bonus towards their new purchase.
“The Kia EV6 has been a homerun, and this is an opportunity we think will appeal to many customers anxious to experience the EV lifestyle,” said Steven Center, COO & EVP, Kia America. “With multiple available motor and drivetrain layouts and an EPA-estimated all-electric range of more than 300 miles in some variants, the EV6 offers something for everyone, and these special offers make it easier for customers to get behind the wheel of this exciting vehicle.”
