When you purchase certain EV/PHEVs, you can file for a federal tax credit of $3750-$7500, depending on certain qualifications. You can also transfer the credit to the dealer and have it applied as a point of sale credit rather than wait to file your taxes. None of the Lexus vehicles qualify as they don’t meet some of the credit requirements, so it’s a moot point here. This credit is found in section 30D of the Inflation Reduction Act.
Updated eligible credit buy list with terms:
https://www.nerdwallet.com/article/taxes/ev-tax-credit-electric-vehicle-tax-credit
Don’t forget (and good luck with) this part (from NW article):
EV tax credit income limits
Along with price caps on cars, the EV tax credit also sets limits on the modified adjusted gross income that taxpayers can make in order to qualify.
New EVs
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Single and married filing separately: $150,000.
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Head of household: $225,000.
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Married filing jointly: $300,000.
Used EVs
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Single and married filing separately: $75,000.
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Head of household: $112,500.
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Married filing jointly: $150,000.
Unfortunately, their leasing discussion has some inaccurate information there.
“Even though the dealership gets the tax credit for purchasing the car, the potential benefit to individual consumers here is that the dealer can, in theory, then pass down the savings by lowering the leasing cost by the credit amount.”
The dealer doesn’t purchase the vehicle nor do they get the commerical tax credit. The lessor does. The dealer also doesn’t have a say in if the lessor passes on an equivalent incentive, although they certainly could add enough mark up to offset the incentive, effectively not passing on the incentive.
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Got it…so I’m attempting to utilize the “calculator”, and I’m a little stuck, plugging in specific values, etc. I’m just wanting to know if the dealer selling the car is staying within bounds with the charges or taking advantage of an uneducated consumer. At the end of the day, if it is easier to just buy the PHEV Lexus RX450h+ rather than lease, I’d like to see the comparison in the numbers. I won’t lose sleep over the difference of a minimal amount, but if it super advantageous to do a lease to get the extra $7500 (and if it is applied correctly is key), then those are the things I’m attempting to resolve.
And, I have no issues to pay a “broker” a reasonable fee to find and make the deal, but if it negates out in numbers of saving just a few hundred dollars, what’s the point? I’d believe that using such services would save $1,000’s and be a no brainer to enlist those persons for their assistance.
Just for @JoeBlow 's clarity, none of this applies if you lease nor is it relevant on a purchase of a new Lexus since the vehicle itself doesn’t qualify at all.
It would be relevant if you were considering purchasing some other vehicles as an alternative option though.
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I was only referring about the buy end of it for the list of eligible 30D cars as that is what he was asking about, i.e. a purchase.
I suggest you take your minutiae argument up with NW as we all know the lease $7,500 is a after all “tax credit” not claimed on your taxes. The consumer doesn’t care what it is called or who is technically “getting” it as long as the deal has a $7,500 off line or other proof it is baked in on CCR, a super-subvented MF, credit or whatever else it might be.
Once again, nobody said Lexus was on the list as was pointed out by @jeisensc earlier.
The link was info only, so please for once just give your ADHD semantics gymnastics nonsense a rest.
You have someone in this thread completely unfamiliar with the differences. It would be very easy for someone not versed in the nuance to see your list of income qualifications and be concerned that it applies to their lease, which is why I tagged him and added the clarification that it doesn’t apply in this situation.
The nuances make a difference. A specific situation I have seen pop up many times is someone leases a phev through USBank, who passes on their tax credit in the form of an increased RV, and then the salesman tells the customer that since they didn’t get the tax credit itemized on the lease, they can apply for the federal tax credit. The uninformed customer walks away at best being disappointed that their vehicle actually cost them $7500 more than expected or at worst, unintentionally commiting tax fraud when they file for the ev credit.
This is some of my points of being uninformed, which you have assisted so elegantly explaining to me, a ‘newbie’, and ignorant to the process.
So, I’m still futzing with the “calculator”, not getting numbers right, and I expect tha when I do get it properly configured with the correct input, I’ll become more knowledgable. Until such time, I’m beginning to wonder if all of this hoop-da-la iis worth it all, to save a small amount? I’ll additionally pursue the cash buy opting to see the differences.
This should help
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I understand your described justification but i’m sure OP will be just fine - as soon as he reads what he needs to first. 
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As an IT suppot person for over 30 years, I think I can “RTFM”, so without specific, explicit, step-by-step hand holding/guidance, it is rather difficult to navigate. Example: I plug in the LEASE #'s, it comes up with FInance #'s…
If you clicked the “lease vs finance” button at the summary, it will display both lease and finance numbers. For it to be accurate, you would need to include financing terms on the financing tab.
You’re missing the $7500 incentive in the incentives.
I don’t consider $7500 to be a small amount, but to each their own.
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Have you run the numbers on a one-pay lease followed by sub-30 day buyout?
I have not, as I’m not completely sure what that means.
Could I ask you to elaborate to assist me in understanding what that means and how it it achieved, and what the benifit is to do so?
Much appreciated if you can.
Did you read this from Delta above? Your 7500 rebate is being used correctly as cap red and making your first payment. You are not getting hosed you just don’t know what you are doing…google search on ‘how to lease’, wiki here on how to use calc will help you immeasurably if take the time to study.
I rely on getting the correct info from the sources here as well as “trusting” the dealer. I’d expect it to be in detail, from the dealer, line item by line item, and then if I still “don’t get it”, have an accountant or attorney review the validity of the proposal.
Excuse my ignorance, I’m not an expert on leasing, hence why I am here, on this forum.
So it’s to me very simple, if there is a rebate (EV credit), and it is NOT used to reduce the “out the door price” in addition to any other reductions of MSRP cost, why it’s being put on a different line item, used in a different way, makes me confused as to why it’s not simple arithmetic.
IF X-Y=Z and A+B=C, why do they take A and apply it to X? Crazy analogy, but that is exactly the way it seems to me, screwy louie.
So at the end of the day, all I want to do is buy the car, and rather than pay for it 100% cash (no finance) I was of the belief that I could obtain it for a better price if leased, and from what I’ve been reading here about ending the lease in 2 weeks or the 1st month with no penalties was to get the best bottom line.
So all of the itemizations, deductions, charges, costs, etc and the way they are used and without an average consumer having a complete knowledge of the way they should, could or can’t be implemented, it is a perplexing ordeal to digest all the tings to know if one is getting screwed of obtain a decent deal.
Using the calculator here I can’t figure how to make it Lease vs Buy, only Lease vs. Finance which means I have to figure how to manipulate the calculator to give correct results, and then, hoping I used it properly so I can be educated as to my choices.
At the end of the day, if I forgo the lease and buy cash with the 6.63% discount off of MSRP + NJ tax of 6.625% and include the dealer fees, that total number would I’m calculating be in the ballpark of $885 other 'dealer fees and taxes, plates, registration, etc., let’s say that purchase is $77,600.
However, if choose to lease, in Section 13 line ‘o’ (Gross Capitalized Cost) shows $77,351.
Am I figuring that correctly? the cash purchase is almost the same as the lease?
Was getting close based upon some of previous responses/questions, but I stopped reading right here.
Sorry dude you need to put some time in studying leasing…people think complex because lazy and don’t want to read or educate themselves…most of the hackers here aren’t going to hand feed you…that lease is totally normal and not complex at all.
PS, you do understand they are rolling all fees (only bogus fee I see is the 199 for theft pro) and taxes into cap and then the 7500 rebate is reducing that cap and also making your first payment.
The only additional fee you will have on going lease initially is the acq fee but that is the cost of getting the 7500 lease rebate.
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