Okay, so the Chrysler credit comes and goes, and Ally passes some on, but charges an arm and a leg in interest.
Is there a bank who passes on the full EV tax credit for every car they lease?
My question exactly. One of the Mods took my last post down because I made a thread specifically about this question - which finance companies pass on the largest amount of the credit without increasing the MF.
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Because people keep asking this question without doing any research. This changes all the time so go on the Edmunds forum and check the model you are interested in, see what lease cash or incentive is available.
All of this ev credit hunt is pointless…so what if the captive passes on the full credit then drops the RV to the 30s? How is knowing which one gives you the full credit supposed to help you get a great lease?
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I always go to Edmunds first. They don’t address this questions there though.
How it helps is the captive/finance company contributes all or a portion of the $7,500 credit toward the deal without messing around with the MF and Residual, then you are saving even more money. That’s how I got a great deal on my Volt in 2017.
Ally passes none on here. The $4500 is idl lease cash which is available on all Pacifica models, hybrid of not.
Idl cash comes at the cost of a higher MF generally, as Chrysler isn’t subveneing the rate.
None of this has anything to do with the federal ev credit.
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The other aspect of this issue that you seem to miss is that many manufacturers are offering all these incentives on regional basis…so your question has to be zip code specific. Check the Ioniq PHEV tread for example…see how there is ~$4500 difference in incentives between E and W coast?
Same for your '17 Volt…
It can change every month. What does it matter if they always passed on 100% until last month, and now it’s 30%?
The owner of the vehicle gets any federal tax credit: that’s the captive. It’s their choice to pass any or no tax credit. Why do you need some exhaustive list of cars that vary so much that nobody is cross-shopping more than a couple?
If you want to know this month for a vehicle you happen to fancy, ask Edmunds
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You keep saying “Go to Edmunds” but Edmunds only covers captive lenders for each brand.
We are asking about 3rd party lenders. US Bank, Ally, Hockner. I don’t know all the non captives out there. We want to know if any of them pass on the full tax credit every time.
Why does it matter if they inflate the Money Factor or cut Residual? This is Leasehackr isn’t it? Maybe changing the trim, mileage or length of term can make it work!
There doesn’t appear to be any bank that consistently passes on the rebate in all cases. One would need to check the vehicle in question, every time, because it varies a lot based on current market conditions.
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I’m not even interested in a Pacifica Hybrid. Im looking ahead to the Jeep Wrangler PHEV that comes out later this year. $7500 off a Jeep with a 70% residual could make a great deal. Doing my research now, which includes Leasehackr. Everything I’ve read says that Chrysler Financial keeps the credit for themselves.
There have been times when Chrysler has kept it for themselves and there have been times when they haven’t. Unfortunately, it varies depending on current market conditions. The 3rd party banks don’t offer their own incentives. When you’re looking at something like Ally, the big incentives are IDL cash being offered by Chrysler when using a non-captive bank.
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Ahh, thank you for the clarity. Starting to see how it is then. Leasing a PHEV doesn’t look as attractive unless the tax crexit is included. I guess its best to wait for it to come around.
On a side note:
What is IDL cash?
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I’m not sure what the acronym stands for, but if you go to somewhere like autobytel and pull up incentives in the fca products, you’ll usually see several thousands in “IDL cash”. It is a rebate offered by fca when leasing through a 3rd party bank. Fca has a different relationship with their captive bank than other manufacturers, where a significant portion is done through other banks. Chrysler financial tends to buy down their MF in their leases, where as other banks don’t, so you’ll see higher incentives.
This is why an ally lease on an FCA product normally has a higher residual, high mf, and higher incentives compared to a comparable lease through Chrysler capital. So when you see a Pacifica hybrid lease with an extra $4500 in incentives but a MF .002+ higher, this isn’t them passing on the federal incentive and marking the mf up, it’s just how the two different banks prioritize their calculations.
Now, there is a good reason why idl cash exists, but I don’t recall it off hand.
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Ahhh, here’s an explaination
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Back to the subject. What about BMW? Most people say they pass it on to tbe customer.
Does anybody know if BMW Financial pass on the EV tax rebate every time?
No, BMWFS does not always pass the EV federal rebate to the customer.
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You are fighting a losing battle trying to find the one car that passes the fed rebates every time. All captives/banks change programs monthly, and none of them pass the full credit 100% of the time.
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Model dependent…lately they been generous.
In what alternate reality do you think a Jeep PHEV will have a 70% residual? And until it’s out we have no idea how big the tax credit will be for it (it could be $2k)
I promise you: IT WILL LEASE TERRIBLY
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Wranglers have ridiculously high Residual. Some trims have 78% on a 24/10 lease through Chrysler, and a whopping 85% through Ally.
Its going to have a similar Hybrid system as the Pacifica, which gets the $7500 refund.
If the residual stays in Wrangler territory, I think a 24/10 on the Wrangler 4XE could be the sweet spot. Just have to find a lender that will pass on the tax incentive