You’re going to get caught in a sales tax trap if you immediately buy out the lease. Are you eligible for the 7500 tax credit on your own tax filing? If so, just do the trade/purchase and you’ll pick up the other 7500 next year when filing. That way you’ll minimize sales tax too.
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Not eligible due to income cap or we’d definitely go that route. We had resigned ourselves to losing it and hoping that depreciation isn’t hit too bad since iD.4 is supposed to lose eligibility in March, but who knows.
I found the dealers have no clue about it. I insisted on speaking with the VW Credit and also asked the financial manager to talk the credit department. My dealer confirmed that rent charges will be returned as “lease charge rebate” in cases of early buyout. I guess their calculation will be
I finally bought the vehicle last night 
Hope this play is successful.
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You actually used Latex to write down that equation? 
Good luck and let us know how it goes.
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This is essentially the difference in an operating lease and a financing lease in accounting. The idea of the differential is that if the lease really is a financing of a purchase that is disguised as a lease, then there is no secondary purchase at the end of the lease. If the contract fits more of a traditional setup (basically most car leases) then, a secondary transaction at the end of a lease has occurred and sales tax is owed by the purchaser/lessee (you). Remember that in the original lease, the lessor paid the sales tax - they just passed on the cost to you by no fault of the state. I would not bet on avoiding the tax.
I will say I recall a Houstonian on here claiming his lawyer took this to the comptroller and won his case, but that was before the publication you linked was posted and was most likely due to laziness for a small amount by the state.
Ok, then to minimize your sales tax hit, I’d put as much of that trade equity as a cap reduction on the lease as they’ll let you. This will minimize your payoff (which will be subject to sales tax). Just don’t total the car before you get the lease paid off or things could get really messy.
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See if you can set the down payment to the net price to where they owe you each month to amortize the vehicle up to the residual amount. $0 buyout!
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HYUNDAI IONIQ 5 HMF Package for 36 months, SEL RWD Maryland
JAN 2023–no tax credit pass-through
Lease: 0.00319 MF=7.66%, 50% residual value
Finance: 5.25 low rate
FEB 2023–no bueno–same as Jan in RateFindr
Skip it and get a Polestar 2
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bummer. anything on the EV6? was hoping to get the credit pass-through on the Ioniq 5, EV6 or i4 this month. looks like the wait continues.
I dont see the section there spdcific to buyougs, but the early termination section would suggest rent charge is earned monthly as nornal.
I haven’t been following the EV6.
“The Polestar 2 qualifies for the IRA Clean Vehicle credit of $7,500 on lease transactions. The credit will be passed by Polestar onto the lessee in the form of a noncash credit and applied as a reduction to the capitalized cost on the lease.”
Haven’t looked into them much but this sounds interesting for certain people pre-March.
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Is it just me or did the Polestar 2 February advertised monthly of $539 + $5k cap cost reduction stay exactly the same as January’s offer—exceptfor now the small print says this price includes the $7,500 federal cash?
So Volvo kept the payments the same but made the interest rate or residual vastly worse in order to pocket the $7500?
Either way I am not all enticed by paying $700/mo for a base model Polestar 2 especially when the 2024 model has so much more range (RWD) and may include more equipment (Pilot on AWD only?).
The Polestar 2 is another EV that is just piling up on dealer lots.
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It probably did as it was more in like 800-1000 in Dec. But I’m not sure those are 'February numbers ’ as Feb just began.
I would pay $700 for a Polestar instead of $800+ For an Ioniq5 or EV6 right now.
There is currently nothing happening in March that has anything to do with section 45 tax credits that are being passed on to leases.
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$3,000 pass through on i4 35e was showing up earlier under incentive lookup.
Not showing up now which is odd. Could be a sign of things to come?
True, unless you are someone that can qualify for the credit through 30, you need a car pre-March, and you are fairly indifferent on leasing/financing. There is still some potential Manchin’s bill retroactively removes credits taxpayers are thinking they got, but leasing would guarantee it. Not saying I would base my decision on this rare occurrence, but it should go into this person’s consideration.
I have current lease of 2021 ID 4, since April 2021. I just requested pay off amount for early buy out.
the quote deduct the rent fee from my total amount.
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Nobody qualifies under section 30 for a polestar 2
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