Mercedes-Benz is offering higher lease incentives on its all-electric G-Class SUV in the United States as a federal tax credit loophole for leased electric vehicles is set to close at the end of September.
According to a dealer bulletin, the 2025 Mercedes-Benz G 580 with EQ Technology will now come with $9,500 in lease cash, an increase from the $7,500 offered last month. The new incentive marks a 27% rise in savings, with offers available through September 2.
The incentive comes ahead of the September 30 expiration of the federal $7,500 EV lease tax credit, which has allowed many leased models to qualify despite being excluded from purchase incentives. Automakers, including Mercedes-Benz, have relied on this mechanism to make premium EVs more affordable under lease terms.
The electric G-Class, however, remains a high-priced model. Starting at $162,650, the incentive represents about a 5.8% reduction. Current lease terms advertise payments of $1,869 per month for 36 months, with $14,613 due at signing—equating to about $2,275 per month for 10,000 annual miles.
Mercedes-Benz has also adjusted the lease money factor to 0.00180, roughly equivalent to a 4.3% annual percentage rate, which is lower than previous standard rates.
The G 580 carries an EPA rating of 62 miles per gallon equivalent and an estimated driving range of 239 miles per charge. While those figures fall short of some competitors, the model is positioned to appeal to buyers seeking the traditional G-Class experience in an electric form.
Industry analysts expect that some consumers may accelerate lease decisions before the federal credit for EV leasing ends later this month, as automakers adjust incentives to maintain demand.