It’s usually as simple as lease the car, and then once your account is set up, buy it out. In some states, the buy out has to go through a dealer. In others, you can buy direct from Hyundai financial.
There’s nothing straw purchase about it since you, the lessee, is the buyer. Remember, on a lease, you do not get a tax credit. You simply get an incentive from the bank.
The tax credit is claimed by the leasing company. They may choose to reduce the capital cost by all, some, or none of the amount of the credit. The customer does not claim the credit.
If the leasing company chooses to reduce the capital cost of the lease by $7,500, then the customer benefits because the amount that they have to pay to buy out the lease is reduced by $7,500. Leasing companies have alway received the tax credit. They will continue to do so. These companies are unaffected by the restrictions that President Manchin introduced in August 2022 when he signed the IRA. This didn’t matter to non-commercial buyers before the IRA changes.
That is why almost everyone who wants to buy an EV should lease, get the lowered cap cost, and then buyout the lease, either with cash or with a decent refinance package. Exception is those buyers whose income and vehicle comply with the Manchin restrictions. Buying out the lease makes irrelevant any games that may be played with the terms of the lease–inflating the money factor, messing with the residual value, etc.
Sorry if this is previously discussed but does anybody know whether Audi (VW Finance) has an early prepayment penalty of any kind? And whether the disposition fee must be paid on buyout? Thanks
I just got a VW ID4 yesterday and had the same question. There is no penalty and disposition fee for buyout from VW finance/credit. I had happened to read that same message in one of the other forums on LH as well. The message has been consistent between the forums and a few of the knowledgeable VW dealers (although some VW sales people will and do say stuff) , no prepayment penalty and disposition fee for buyouts.
I’m sure smarter people have answered this question but I can’t find it:
My VW dealer is advertising the $7,500 lease discount on the '22 and '23 ID4s. I had thought only the '22’s we’re eligible since the '23s can receive the IRS tax rebate. Was I wrong? If so, is the lease rebate for a '23 a separate thing and could I then still get the IRS rebate? That seems unlikely, but I wanted to ask for input.
The bank gets a different $7500 tax credit that does not have the same restrictions as the customer tax credit that applies to purchases. They then choose if they want to pass on an equivalent amount incentive. VW chooses to.
That’s when the proposed regulations go into effect. There’s a public comment period running through June on the proposed regulations, when the real regulations go in effect.
Of course, if you purchase between April and June, you’re subject to the proposed regulations, even if they don’t make it into the real regulations.
Somehow, they managed to further complicate this shit show.