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
Because Wranglers have proven to hold their value over time. I haven’t seen any GC’s north of 60%. I don’t know if I’ve seen any PHEVs at 50% (most in 30-40% on RVs). The bigger the tax credit, the lower the residual value (the car’s value at three years is pushed down by tax credits because everyone who bough that model then got the credit).
You won’t know how big the battery is/isn’t (which drives the PHEV tax credit) until it’s announced. The same system with a smaller battery (eg accounting for weight) will get less. Funny thing: nobody seems to have performance expectations from the Pacifica: it’s a grocery getter. I was at the San Diego Auto Show on 1/1 helping a friend look at cars, and there was this marvelous Jeep test track inside where they did hills and terrain and all kinds of tricks. Being able to still do any of those with a second drive system and fuel source takes lots of tradeoffs (e.g. fewer batteries).
The Pacifica hybrid currently does not get the $7500 rebate passed on through any banks.
And Wrangler != GC
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Chevy bolt is 56% res on a 36/10
Right. The EVs have seemed to be around 50%, not the PHEVs. And it’s all subject to change every month.
FCA isn’t going to have to subvent residual or mf on that Jeep PHEV for a while (same for Toyota RAV4/Honda CRV/Ford Escape PHEVS).
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What does this mean?
And that’s why I’m here, trying to learn. I guess we won’t know how bad it could be until it goes up for sale later this year.
Do you guys know where to find a list of non captive lenders for Chrysler?
Ally and US Bank. Any others (credit unions, other banks) will be dependent on the dealership you are working with and if they have a relationship with them. There is no master list.
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