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Best New Car Lease Deals For September 2023: Plug-In Hybrids

Picture Rodney Dangerfield in a plug-in hybrid (had the comic lived long enough to buy one), because they both get no respect. PHEVs have been criticized because they're a complicated half-stop between hybrids and EVs. We've criticized some of them for being heavy, quirky in operation, and delivering unremarkable efficiency for their higher prices.

But the new reality is that PHEVs are exactly the half-stop many car shoppers would prefer over going full EV—the flexibility of an around-town EV and a high-mileage highway cruiser that refuels in minutes.

The Inflation Reduction Act has given all battery-powered cars a boost, even if that boost amounts to PHEVs that are still built and sold in very small numbers. Even better, thanks to a loophole in the new law, PHEVs qualify for fat tax credits when they're leased, which makes many of them cheaper than their gas-only siblings. Most (but not all) manufacturers include $7500 credits in the lease (and Stellantis has some PHEV incentives that top 13 grand). Most PHEVs pack extra power and can finally drive more than 20 miles on a charge.

Still on the fence? Several of the leases this month offer two-year terms, so if the PHEV lifestyle disappoints, you're not stuck with it.

Check Our Leasing Guide

Make sure you first read our leasing guide. We've covered everything that may get glossed over in the showroom: advertising fees, money factors, residuals, legal implications, and all the other fine print that could cost you thousands more than you'd expect. When comparing similar cars, be aware that a lower monthly price often demands more money up front. As with any national lease special, enter your ZIP code on an automaker's website to check if these deals apply to your area. Prices do not include taxes or fees and may be higher or lower depending on your location. Research is always your friend.

Stellantis

$696 per month/$4749 at signing 39 months/32,500 miles

As the only plug-in minivan on sale, the Pacifica is the perfect suburban shuttle with 32 miles of EPA-estimated range. It's among the priciest minivans—and forgoes Stow 'n Go for extra-padded second-row seats—but incentives in CARB states amount to $13,500 off a lease on any of the three trims. That means the actual monthly price, if you register the van in a CARB state, is closer to $520 per month for the Touring L, which is roughly equal to the lease special on a non-hybrid Touring L.

Marc UrbanoCar and Driver

$620 per month/$4764 at signing48 months/42,000 miles

Ford's only PHEV is priced to lose, and despite a refresh, the Escape PHEV is more expensive than most rivals, has a middling interior, and comes only in front-wheel drive. Ford doesn't seem too eager to move this model, especially with a four-year lease costing more than its well-optioned Lincoln equivalent, the (gas-only) Corsair Reserve. An EPA-estimated 37-mile range is a consolation prize, but other brands make better PHEVs in the compact class. Call us crazy, but we miss the C-Max Energi.

Alfa Romeo

$409 per month/$4275 at signing36 months/30,000 miles

The Tonale is exclusively a plug-in that combines a turbo 1.3-liter four with enough electric assist to produce 285 horsepower and up to 32 miles of battery range. There are some teething issues in the Tonale's first model year, mainly with its suspension dampening, but the Tonale is a hot little number just like any Alfa Romeo. It stands out, especially with its metal column-mounted shift paddles and emerald green paint, so long as you're not parked next to a Dodge Hornet. This lease is for the midrange Ti trim.

Dodge

$339 per month/$4249 at signing36 months/22,500 miles

The Hornet is an Italian-made Dodge that in R/T trim shares everything with the Tonale except the Alfa's flashy face and steering-wheel-mounted start button. It's cheaper than the Tonale in this particular trim, but the mileage is down to only 7500 a year and you'll need to own or lease a car from what Dodge considers a competitive brand. The price escalates to $430 per month at 12,000 miles a year.

BMW

$579 per month/$4929 at signing36 months/30,000 miles

BMW doesn't appear to pass any tax savings on to lessees on their three plug-in models. Witness how the 330e costs $10 more per month than a gas-only 330i or the all-electric i4 eDrive35 (which does have a $7500 credit applied). On price alone, the 330e is just as rare on dealer lots as it was in the previous generation (and, four years after we sampled it on a first drive, the 330e is still not rated by the EPA). Still, there's a boost function that delivers 40 extra horses even with the battery depleted ,and the hybrid system can adapt its mix of electric and gas propulsion to hills, traffic, and cities when a navigation route is active.

StellantisCar and Driver

$369 per month/$3449 at signing24 months/20,000 miles

There's a reason you see blue tow hooks on more and more Jeep Wranglers. They belong to the 4xe, which Jeep is pushing hard with super-low leases that ordinarily would never be offered on $60,000 Wranglers. Jeep's hardcore, part-time four-wheel-drive system works surprisingly smooth with electric motors and a large battery under the rear seats. This lease is for the Willys, which does include power windows, and will let you have two summers of open-top fun without committing to the usual three years.

Michael SimariCar and Driver

$399 per month/$4729 at signing27 months/16,875 miles

By far the best deal here is the Grand Cherokee 4xe, which borrows the powertrain from the Wrangler 4xe and installs it into a modern vehicle with a real roof and doors. Jeep has lease deals on seven 4xe trims (the best of which includes $13,500 of incentives on the Overland) but 400 bucks a month in a base Grand Cherokee is a solid deal. This is an odd-month duration (27 months?) but like the Wrangler 4xe, consider this lease a no-strings test of its plug-in capability and the most value-packed way to get into any Grand Cherokee.

Michael SimariCar and Driver

$359 per month/$3009 at signing36 months/36,000 miles

Toyota is offering $4500 incentives on the Prius Prime, which returns up to 44 miles of EV range and hits 50 mpg in the city. For pure efficiency, the Prius Prime is the top plug-in—and for MPGe, which is not yet rated, it outperforms many EVs. There's also real speed and sexy style. This lease is for the base SE and includes a generous 12,000 miles per year.

Car and Driver

$549 per month/$3849 at signing36 months/30,000 miles

Here's where Volvo nails its compact plug-in sedan where BMW nods off: 455 hp and 4.1 seconds to 60 mph, for less money down and less per month. The S60 is handsome and elegant like all Volvo models, and absolutely no one will suspect that while you're cruising silently (up to 41 miles) that a Volvo could rocket off the line like a manual Porsche GT4. This lease is for the Core, which includes a panoramic moonroof and four years of remote app and LTE connectivity.

Mitsubishi

$369 per month/$4368 at signing24 months/20,000 miles

Mitsubishi doesn't get much love for the Outlander, even though the latest one has more seats than the Nissan Rogue that underpins its chassis (and a spiffier interior). The PHEV version claims 38 miles on the EPA test cycle. Consider that leasing a RAV4 Prime costs well over $500 (plus that Escape PHEV at more than $600!) and the Outlander seems like a very good deal. A short two-year term is another bonus.

Contributing Editor

Clifford Atiyeh is a reporter and photographer for Car and Driver, specializing in business, government, and litigation news. He is president of the New England Motor Press Association and committed to saving both manuals and old Volvos.

How To Get The Best Car Lease

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Leasing A Car

Drivers who lease vehicles save an average of $115 per month compared to those who finance vehicle purchases, according to Experian's Q4 2021 State of the Automotive Finance Market report.

However, your lease can be costly if you don't read the fine print. Avoid these five common car leasing mistakes before you lease your next vehicle.

1. Not Negotiating How Much You'll Pay For Your Leased Car

Every new vehicle comes with a manufacturer's suggested retail price (MSRP). The MSRP is a suggestion of how much you should pay for a car purchase. You can negotiate the capitalized cost of your leased car, which is the overall amount you'll pay to lease. This can result in a lower monthly payment or a lower down payment due at signing.

However, keep in mind that negotiation doesn't work in all cases. Some leased cars already have a reduced price set by the manufacturer and the dealer.

In addition to the overall price, you should negotiate several other things before signing a contract. These include fees and the cost of add-ons like gap insurance. You can also discuss increasing the mileage cap for your leased vehicle to ensure you get the most value for what you're paying.

2. Underestimating the Number of Miles You Plan to Drive

Negotiating the mileage in your lease contract can help you spend less money if you plan to hit the road a lot. According to the U.S. Department of Transportation, Americans drive an average of 13,476 miles per year. Most car leases include an annual mileage cap of 10,000 or 12,000 miles per year, below the national average.

If you think you may exceed the cap in your car lease, paying for more miles up front will be less expensive than the penalty you'll pay when you turn your car in. Most dealers will refund you for any unused miles if you pay for extra mileage before signing your contract.

3. Not Purchasing the Right Car Insurance Coverage

In addition to your state's car insurance requirements, lenders might require you to purchase gap insurance as a condition of your lease. Gap insurance pays for the difference between what you owe on your car and what your car is worth if it's totaled in an accident or stolen.

If your dealership doesn't require gap insurance, consider purchasing it as add-on coverage. Most dealers offer this auto insurance coverage, and it could save you thousands of dollars if you get in an accident.

4. Not Maintaining Your Leased Car

Taking care of your leased car will save you money in the long term when you return your vehicle to the dealership. Almost all car leases allow for normal wear and tear, like minor scratches and dirt on the upholstery. However, anything that can be considered excessive wear may cost you.

Keep up your regularly scheduled maintenance on your leased vehicle and repair any collision damage to avoid unnecessary costs. Also, making improvements to the vehicle without approval from your leasing company can cost you. The company could charge you to remove any modifications made to the car.

5. Keeping Your Leased Car for Too Long

Long-term car leases generally last more than two years, which means your vehicle's new factory warranty could expire during your lease period. While warranties vary by manufacturer, most limited warranties last up to 3 years/36,000 miles.

Consider matching the leasing period to the length of your car's factory warranty when negotiating the terms of your car lease. If this isn't possible, you may want to purchase an extended warranty to cover unexpected repair costs.

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