I was offered a $5,111 off MSRP ($77,060) making it $71,949.
They put the $7,500 EV tax credit on a different line (as balance on delivery) and the price of the car in reality is $64,449 for which all of the taxes, itemizations, deductions, costs, etc., should in reality be configured with.
I’m doing the immediate buyout of the lease in 2 weeks after the deal to get the rebate, so I’m in actuality buying the car, but have to lease it to get the credit, etc. (that process is discussed in these forums).
Any help?
The assistance is greatly appreciate, the sarcasm is not. I’m asking here because I believe that the purpose if to get real world examples of experiences. $5k under invoice but no $7500 EV deduction is my major concern and if a car costs $77k with a NJ tax rate of 6.625% that is $5,101 full MSRP with no discounts $82,101. A $5,111 MSRP deduction is $71,889 + $4,762 NJ tax is $76,651 total. Now, a $7,500 EV Tax credit from $71,889 is $64,389 + NJ tax of $4,265 for a total of $68,654.00 “out the door” + dealer prep and all the other stuff (lets just call it an even $1,000 in “fees”), so in all reality the car to be obtained is about $70,000 with discounts, credits, etc., etc.
So the questions are, how many $1,000’s of dollars should be expected to pay to get a lease that is going to be terminated within 1 month of getting it just to get the EV credit applied, what is the “negotiation” of money factors and all the other items that should be paid attention to to be sure that the dealer is being honest and fair and not ripping a consumer off (like they seem to be doing by not applying the tax credit to the MSRP), and (or?) is it better of advisable to just pay cash and forgo all the thick BS? All the #'s are shown in the referenced documents.
What matters most is the lease agreement. The SP (agreed upon value is 72148, not 64449. A portion of the 7500 is used as a cap reduction (6284.61) and the balance covers the 1st payment of 1215.39. Your DAS = 0 followed by 35 monthly payments of 1215.39 each.
I thought there were no taxes in NJ for EV’s unless that’s changed recently.
And the lease agreement shows the 7500 credit. So, why this seemingly EV credit if the 450h isn’t an EV. According to OP, it’s a PHEV. So, I guess PHEV’s are subject to tax in NJ but still entitled to the 7500 EV credit.
Its a lease, so OP doesn’t get a federal tax credit at all.
Section 45W of the IRA allows Lexus Financial to take a $7500 federal tax credit on phevs and evs when they purchase the vehicle to lease it as a lessor. They have then elected to provide a $7500 incentive to lessees.
The important delineation here is the the NJ sales tax exemption applies to EVs but not PHEVs. The federal tax credit to the lessor under 45W (or the tax credit to the consumer under 30D on a purchase) applies to EVs and PHEVs.
“on a purchase under 30D”, meaning what? Is it just as advantageous to purchase to get an EV tax rebate or only that $7500 max amount via lease is the only one? Thanking you all for the replies, I love to be educated…
Even if you meet the eligibility requirements for a purchase under 30D, no Lexus does AFAIK. If you want any of that tax credit, you have to lease to capture it.
