I am considering ordering a 2021 Tesla Model Y. My idea is to finance the car, which is $52,490 with the upgraded wheels, white interior and black exterior. The $ 52,490 includes the $1,500 CA Clean Fuel Reward offered by Tesla.
I have been approved for the CVAP $5,000 grant and think I can get the $4,500 rebate from CVRP and 1 grand from SCE. This is a total of $10,500 in rebates.
After the rebates I will be in the car for $41,990 + $4,189 sales tax + $649 fees = $46,828 invested total,
I would be financing at 2.5 percent APR for 72 months $ 47,490, which is $ 806 per month with $ 4,838 down (the sales tax and fees).
Looking at dealer auction values (MMR), I could sell the Tesla Model Y in a year or so with 10k miles on it for around 54-55 grand.
Doesn’t this mean that I could drive the 2021 Tesla Model Y for one year for free and then sell it and end up making 7-8 grand??? Please let me know if I’m making a mistake here or if I should go for it. Thanks!!
Sadly there are a lot of no’s here. I know that CVRP must be paid back pro-rated if you get rid of the car within 30 months. I am sure CVAP and SCE rebates have the same rules. Also, even if the auction prices are higher than original MSRP, that doesn’t translate out to the same selling price for you. Anybody is welcome to chime in, but I think there is a lot of wishful thinking here.
I just read that you don’t get the $1,000 SCE rebate if you got the $1,500 CA Clean Fuel Reward. I currently have no income due to COVID, but that doesn’t mean I have no money. Yes, low income qualifies for $4,500 CVRP. Thank you for letting me know about the 30 month rule.
Can I use a clean vehicle grant to lease a vehicle?
Yes, however, we recommend doing extensive research before entering a lease agreement. We are unable to ensure fair leasing practices from the leasing companies, so it is your responsibility to negotiate a fair lease that will meet the program requirements. There are many resources on the internet to help you prepare for a lease, such as this video. Grant recipients are required to own or lease their clean vehicle for a minimum of 30 months.
It’s listed plainly in the FAQ of CVAP.
Please, don’t hedge a major financial decision on this. There are so many better choices, and you’ll end up in the hole keeping up with the joneses.
Sources; CVAP official website, FAQ, Subsection leases.
Plenty of details on CVAP and CVRP if you search here and read through the website, lots of excellent clarification here.
Even if you get all the tax credits, and someone will finance a $50k car on those terms to someone with no income (you need a cosigner with the income to carry their debts and this), as mentioned there are no guarantees on resale value.
Bad decisions within bad decisions, and with that I’m out.
No it will not. That also has a minimum length of ownership to weed out those who intend to game the system.
“ Retain ownership or an active lease agreement and registration of the vehicle with the New
Jersey Motor Vehicle Commission for a minimum of 36 consecutive months immediately after the vehicle purchase or lease date. Leased vehicles must reflect a minimum of 36 months on the original lease agreement.”
Your calculations highly depend on how much you can sell the Y for but Tesla Y is probably the best bang for your buck especially when you are qualifying for higher CVRP.
There almost has to be a time required to keep the car. Otherwise someone can always buy a model 3 from a CVAP recipient the next day at a discount and both persons will pocket thousands. Not to mention it violate the spirit of the program But if you want to drive a car for cheap for 30 months then just read up on that epic Bolt hack
