Perhaps I’m missing something (looking at you @mllcb42 to catch if I am) but shouldn’t we be stocking up on EV leases as there will be a smaller delta between new retail and what we are selling for if some of the credit is gone?
I’m mostly thinking about all of those dealers that said “why would I buy your 4xe when my customer can get the tax credit that you’ve already claimed?”
Potentially, that’d be the case. Until there’s actually a list of vehicles that the credit effects though, it’s tough to say.
Well then my incoming MME is going be interesting.
Ford says ETA mid - April.
4/18 new rules in effect which most likely means half credit on a purchase.
Does this ruling change leases (IRS 45W) ?
This is all section 30 updates. Nothing for section 45 that I’ve seen.
What about for the states that do on the total lease payment such as GA and OH? Are you paying sales tax on the unearned rent charges as well? Or just the depreciated amount?
Is this the same incoming model that I have been hearing about the past 9 months that never really shows up?
How are you sure that this time it would be delivered in April?
This is only for 30D. Nothing to do with leasing, but thought it would be helpful. Especially since the tax credit would convert into a rebate next year.
Yup, after 11 ETA changes since January 2023 and sitting in Mexico for 3 months it’s finally on a train.
Doubt it will get delivered by 4/18.
So strange how there aren’t more lease deals with the credit getting stricter on purchases.
Other than EQS and the 4xes, most non-domestic EVs and PHEVs are terrible leases (as most brokers attest to here).
I think the i4 leases OK?
Yup. Terrible residual values kill most other EV leases even with the tax credit. The i4 isn’t bad. The best use is to lease and then buy out the lease, and then sell them later if only wanted it for a few years.
Curious what Hyundai will do for the time being. The $7500 lease cash will help to improve sells. Based on cars.com there are more 3k Ioniq 5 units available and sells data is not optimistic
If you looked at the RV and MF before the $7500 pass thru, their EV leases were pretty good.
When HMF started to “give back” the $7500 as a lease bonus cash, their RV dropped and the MF went up.
That’s not nice…
They don’t move ‘that fast’, they need to see the sales drop for 1-2 quarters before they start making deals other than 1) End of Fiscal Year quotas, 2) The $7500 discovery on leases
BMW i4 with MSD interest rate is around 4% or less - you aren’t getting a better or even the same rate financing so there is really no reason to buy out the lease immediately.
I went with an i4 e35 lease. $60k MSRP, $600/mo (including tax), $2k + first month due at signing. I can buy the car out for $33k in 3 years - I will make the decision at that time.
Hi @pagep
did you go through with your S60 Recharge lease and buyout after 1 month?
I’m looking at doing the same with a XC90 to take advantage of the $7500 EV incentive.
Can you share your experience?
Thanks!
So maybe I’m an idiot here but can you explain like I’m 5. The 7500 EV credit is a tax form I have to file with IRS at end of the year? Or is the car dealership giving me this credit off the vehicle up front (?pass through)?
One dealership told me it’s a tax thing and I need to talk to a tax professional.
can be passed through with lease
if buy then tax form
On a lease, there is no tax credit.
There is an incentive offered from the bank like any other incentive.
If you BUY the car, you have to claim the tax credit on your return (you must be income eligible, the car must be eligible, and you must owe enough tax to use the entire credit in that year).
If you lease, the credit is applied during the lease as an incentive.
