2023 IRA EV/PHEV Lease Credit "pass-through"

Not sure if this is where it goes but another thread had good info for anyone looking to “hack” the current loophole for the $7500 Fed credit for leasing:

The “pass-through” term is homage to another thread if someone gets the reference.

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Multiple members have posted that Audi and VW are offering $7500 rebates via their captive finance.

1/25/23: Volvo has joined the party:

1/28/23: Polestar

2/1/23: Mitsubishi Outlander PHEV / Santander lease:

2/1/23: BMW:

2/1/23 Subaru:

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So if you want to lease a EV or PHEV and want to skirt the NA build requirement for purchases (among other restrictions), you may want to look into one of these models/brands/leasing banks.

Props to @RVguy for the initial information (and everyone else who is posting their discoveries).

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The MBFS pass through is interesting. I thought the vehicle msrp cap still applies? And the EQS Sedan/EQE Sedan arent made in the US.

Leases currently bypass all the rules

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There is no msrp cap or North American assembly requirement for section 45 tax credits.

Those only apply to personal purchases where the section 30 tax credit is claimed.

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Is there a calculator link for what an EQB lease would look like?

That is awesome.

Not great, made one on edmunds. I’d rather drive around in an X3 and pay for gas.

2022 Mercedes-Benz EQB EQB 300 4dr SUV AWD (electric DD)

Fair Deal — 6% off of MSRP

Pricing Details

MSRP: $59,280

Selling Price Before Incentives (Estimated Savings 6.10%): $55,661

Cash Incentives: $7,500

Selling Price After Incentives: $48,161

Residual value: 44%

Annual Miles: 10000

Trade-in and Down Payment

Value of Your Trade-in: 0

Amount Owed on Your Trade-in: 0

Cap Cost Reduction: 0

Financing

Acquisition Fee: $795

Lease Term (months): 48

Estimated Money Factor (Equivalent to 6.48% APR): 0.0027

Credit Tier: Excellent

Security Deposit: 0

Taxes & Fees (Includes acquisition & dealer fee in amount shown): $4,932

Estimated Monthly Payment

Total of Lease Payments: $33,455

Monthly Lease Payment (Before Taxes and Fees): $660

Taxes and Fees: +$107

Monthly Lease Payment (After Taxes and Fees): $767

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My understanding was that the EQB has a 50% RV.

It does, for 36 months. Heres the payment for a 36 month, its higher.

2022 Mercedes-Benz EQB EQB 300 4dr SUV AWD (electric DD)
Fair Deal — 6% off of MSRP
Pricing Details
MSRP: $59,280

Selling Price Before Incentives (Estimated Savings 6.10%): $55,661

Cash Incentives: $7,500

Selling Price After Incentives: $48,161

Residual value: 50%

Annual Miles: 10000

Trade-in and Down Payment
Value of Your Trade-in: 0

Amount Owed on Your Trade-in: 0

Cap Cost Reduction: 0

Financing
Acquisition Fee: $795

Lease Term (months): 36

Estimated Money Factor (Equivalent to 6.48% APR): 0.0027

Credit Tier: Excellent

Security Deposit: 0

Taxes & Fees (Includes acquisition & dealer fee in amount shown): $4,364

Estimated Monthly Payment
Total of Lease Payments: $27,776

Monthly Lease Payment (Before Taxes and Fees): $725

Taxes and Fees: +$126

Monthly Lease Payment (After Taxes and Fees): $850

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Try the EQB 250… it just came out (dealer is calling me about it… I asked them for lease numbers first :slight_smile: ).

I see this a lot with Mercedes lease deals. A lot of buyers opt for 48 month lease but IMO, the lower monthly isn’t worth being stuck with car for another year. I’d understand if these were the old days of the $400 E-class’ or $700 S class’ but those days are long gone……if they offered 6 year leases, monthly would be even lower :flushed:

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I mean, theyre getting there. Dont they have 60 month leases? I thought i saw one in the marketplace a while back. Its obsurd.

@RVguy

If Kia is doing a credit for leases, wouldn’t Hyundai too?

Isn’t ally the one doing it not KMF?

Kia Finance isn’t, Ally is.

Hyundai is doing a small deal on their Kona at this time.

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Ahh… can’t even read my own posts. So why is Ally doing it for Kia but not Hyundai?

Does anyone have experience initiating a lease through ally? Do you have to find a dealer who specifically works with them, or do tell the dealer that’s who you want to lease through and contact them directly? Thanks for any input.

You need to go to a dealer that offers ally leases, which unfortunately often can only be found out by contacting them and asking.

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Did I miss something or does this mean that 23 Kia Niro PHEV will be eligible to claim tax rebates in 23 tax filing as I thought this model is not eligible for any tax rebates as per new rules.

I have a 23 Kia Niro PHEV incoming in about a week. I was thinking of financing it but my contact at the dealership is saying that Kia has not announced any rebate eligibility for Niro PHEV for 23. I was thinking of financing it but if lease is going to pass the rebate to me right now, I feel it makes sense to go to lease instead of financing, right (provided the dealership accepts Ally leases)?

Verify the Residual Value, it might mean the Ally lease has a lower RV and you actually make more monthly payments.

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