Found a dealer in Ohio that will finally use the loophole tax credit for a down payment and include other Kia incentives at the same time.
36 Months / 12k Miles
Other dealers are coming more off MSRP but not able to understand the $7500 loop hole if I sign the rebate over to them. MF seems higher than calculator, should I ask for better if I am tier 1?
Whats this now?? They don’t understand because it’s not a thing.
There’s no loophole and nothing to “sign over,” everyone qualifies for the lease cash and incentives offered by the captive bank on leases.
the leasing company can get a full $7,500 tax credit for an EV, and in turn pass some or all of those savings on to you in the form of lower lease payments, via down payment, however only one dealer will do this
Yes but everyone qualifies and it’s the same regardless of dealership. They pass it along in the form of incentives/lease cash. Sign up for ratefindr to see the incentives, RV, and MF as they apply to you. In OH, the EV6 qualifies for 11,900 which is included in your quote. You may be confusing the dealers if you mention “loophole” and “signing it over.”
You can structure a deal however you want, $0 Das or extra cash from you. No dealer should have a problem with this.
You really shouldn’t have to bring this up with dealers. Create a target deal based on data points here and make offers with $0 Das if that’s how you want to structure it.
In your quote above, it looks like the dealer is expecting $7500 cash from you. The 11.9k is already in the rebate line, there’s no further 7.5k rebate available on this vehicle. They might be confused with your request.
Yeah not sure what you mean, I think you are conflating things. As @SteveB25 mentioned, there is no loophole. Any EV that qualifies for federal incentives, has said incentives automatically passed through on leases… and everyone qualifies.
Perhaps you’ve been running into issues getting dealers to discount beyond all available incentives, but that’s a different story.
In any case, this is a weak discount. Change your strategy by making offers for your target deal, instead of soliciting offers and hoping they come back with some decent discount + all applicable incentives.
Since you’re a super supporter, you have access to RV, MF, and incentive info. Use the calculator and build your target deal with this information + some pre-incentive discount that is aggressive yet feasible, as informed by the many data points on this form (broker postings, signed database, signed forum, etc.)
Thank you for your reply. I could have indeed worded it better but a lot of the dealers say the federal tax credit is built into the $11,900 which didn’t seem like the case to me. I will double check with him tomorrow that they are not requiring the $7,500 from me for some reason. It’s also confusing that the finance manager used the same wording I did with “signing over the tax credit from you to us”. Thank you all for suffering my ignorance.
They are right. Manufacturers claim the tax credits from the government, and in turn pass through to consumers in the form of a direct lease rebate. Many manufacturers (just like KIA in this example), are further incentivizing on top and providing even more incentive ($11,900 in this case).
In this case, the discount is so weak, that their lease offer is structured in a way that requires $7500 DAS in order to get to $450/month. However, there is no such thing as “signing over tax credit.” They are likely just further playing into your confusion.
This deal is terrible. No further reason to engage with this (or any other) dealer until you’ve first taken a step back and to understand what your target deal is that you should be using to make offers. What pre-incentive discount (discount BEFORE the $11,900 in lease rebates that EVERYONE gets) are you seeing in the marketplace. Use that to build a target deal using the calculator and post it here.
I haven’t checked the signed / broker deals on EV6 in the last couple months, but there are likely much more hackable EVs right now that provide more value / cheaper.
We were all new to this at one point, best thing you could have done was come here prior to signing.
Seems like the other dealers were the ones you wanted to work with, not this one who seems to be playing into your idea of how the credits work without explaining it properly. Guaranteed they ask for 7500 cash due at signing. There’s nothing to sign over, nothing to claim, since you can’t claim the 7500 on a lease, only a purchase.
I have just walked into this same issue with a sales representative who does not understand how the EV credit works … shocking to be honest
If it’s too good to be true it’s because it is
He knows, he just wants to play dumb to get you to overpay $7500
Yes, I’m asking for the draft contract with a breakdown of costs and he’s being evasive. Probably just a tactic to get me to come in?
If I’m not paying the 7,500 DAS that he claims come via the credit AND he is giving me the 7,500 lease cash incentive rebate then I’d take two. Unless I’m really fundamentally missing something. Where would the 7,500 in my DAS come from if not me lol
Yeah, expect to be ghosted when you ask too many questions! Or told somehow you misunderstood. I still have the lease quote with “The government wants to put down $7500 for you” on it. I think maybe I’ll frame it.
Part of me wants to keep pulling this thread and then cause a scene to get a bigger discount off MSRP. Hmmm…i don’t have the energy
You are the perfect candidate for a broker.
Sometimes the dealerships don’t know what they’re doing and it is to your benefit. I wouldn’t rule out an offer like the one OP got in this thread until you go in and have them walk you through everything. The dealership I signed with made a huge mistake and gave me the credit as a downpayment, didn’t require me to sign anything over or claim the credit myself and gave me an incentive for the credit. Double dipping. Comically low monthly period.
