How many people do you think have sold out their lease after using it to file for the federal tax credit?
I think you have to keep the car for a certain amount of time to be able to legally claim the $7,500 federal tax credit.
There are some state credits that have a minimum hold time, but there is no minimum time for the federal tax credit since it doesn’t apply to leases at all.
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Also the customer never received the credit, so if anything it’s the leasing company’s problem.
It’s a huge benefit to leasing. This is the first time I’ve sold a lease so soon (you called me out earlier) but usually at around the 2 year mark I sell my lease, take the positive equity and get into something new. The one time I leased through Ally it’s was a nightmare because they upcharged 3rd party buyouts. Regardless of “rebate stealers” leasing non tax incentivize vehicle would be less enticing with 3rd party buyouts off the table.
I responded to you a few days ago. Never intended to sell the first 4XE. I am not selling my new 4XE. I posted about the process of selling the 4XE because many people had questions about it.
Guess what? It grows the economy. Benefits everybody. Hurts nobody
This applies to the bank that buys the car. Not the person who leases it. When you lease a car you don’t get the tax credit. And since your not getting the tax credit, you’re not breaking the law. The bank can’t buy the car with the intent to sell it for profit. What people are doing flipping leases is not stealing and it’s not illegal. It’s arbitrage.
At best, it’s a loophole. The intent of the rebate was not to create the ability to extract equity via arbitrage. It’s not the lessor who is acting wrongfully, it’s the lessee. It may not be illegal but that doesn’t mean it’s not stealing.
The NJ Charge Up program, as well as many other state EV programs, were written to explicitly protect this kind of behavior. I would be shocked if this wasn’t addressed in the forthcoming update to the federal program.
The lessee doesn’t get the rebate though. How does one steal something they never get?
Would they change the verbiage on the federal rebate to say “you super duper still don’t get this”?
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I would argue there mainly is an arb here because of how crazy the market is (for both EVs and non-EVs) and doesn’t have to do with the federal rebate. In a normal market what would happen is that federal rebate would give sellers room to take less for their cars but still be happy to get out. In particular: where supply = demand (or worse where demand < supply) I would be pretty confident that the fair price for a used EV is going to be somewhere decently (or in some cases far) less than the avg selling price for new EV - federal rebate. I don’t know this to be true but I would bet if you did a study of how much equity the avg non-EV leaseholder has that the avg for EV leaseholders isn’t very far off… but maybe I’m missing something…
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When you get a FREE dessert on your birthday-are you stealing it from the restaurant or was it really FREE 
you can’t change the fact that market dictated that some of these will profit in the current situation… rather than when regular market would dictate a lot less residual etc
Just take the $$$ and Shhhhhush-its still legal, that’s all that counts
The point of the government incentives is to get ev’s on the road in place of ice cars, so in that sense it is working. The fact that people are flipping for profit has more to do with the current car shortages than the government incentives. When the market corrects the flipping will be over. I say make hay.
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Nobody ever has the intent of getting arbied. It’s usually crafty people that figure out something costs X here and Y there.
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The fast food chain that “has the meats”?
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Like the military.
Like funding the development of lifesaving vaccines.
Like national highways.
Yeah it’s just awful when we have to pay for services that make lives better for everyone.
Ayn Rand style stupidity.
yes, because that is all they use the money for. Good one.
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They use the money for some things I don’t like (like the overblown military) and they don’t use it enough for others I’d like to see (like single payer universal healthcare).
No one gets everything he or she wants.
That’s why you vote.
And exactly my point. They’ll TELL you it is for one thing, and then use it for something else. See my previous point about education. They took my money and THEN decided to pull funding.
Which doesn’t in any way change the fact that the idea you should pay NOTHING remains ridiculous.
So it’s not “your money”. It’s money we all contribute to a common good.