Looking at 2024 leftover Taycans. Dealers are giving 22.5k towards a lease and an additional 7500 off MSRP. I’d like to lease the car to capture all the incentives and then buy it out to take advantage of the incentives. Is this possible? I’m being told that residual value is based of off MSRP and if i wanted to buy out shortly after lease, the buyout would be based on the MSRP of $111k and not the Adj Cap Cost of $82k.
Start sending out offers to dealer - also check Marketplace for deals from brokers on loaners or use @wam22 for New Car deals or @fredyge94 for New and Loaners
The dealer isn’t being honest with you somewhere where. Either the money factor is marked up like crazy or they aren’t giving you the full 30k in incentives
So, the buyout is dependent on the adj. cap, not the MSRP. You may want to read about the early termination purchase option in your lease agreement. That is the bible so to speak… the final authority. Don’t listen to dealership people as most know next to nothing about calculating buyouts. It doesn’t matter one hoot what the dealer says. What matters is what your lease agreement says.
If possible, do the acquisition waiver as @anon65069371 wisely suggests if you exercise your buyout soon.
Something isn’t right. I get a base payment of 1202.82. Adding tax @9.25%, the monthly payment is 1314.08. The MF = .00430 which is equivalent to a whopping 10.32% I suspect that the dealer discount of 6.75% can be significantly improved. If your numbers are exactly the same as those of the dealer, I would move on from this dealer. They seem clueless to me. Mistakes were made.
The $22500 rebate includes dealer participation of $7500. So the dealer is really discounting the car $15k with an additional $15k rebate from PFS. So it is really a 13.5% discount.
The difference between the MSRP and SP 1s 6490. This equates to a dealer discount of about 5.8% Total PFS rebate is 22500 of which, 7500 is the EV credit or so it seems. The 22500 rebate is used as a CCR. The rebate and dealer discount are two totally different concepts. One has nothing to do with the other.
The $22500 is broken up between a $7500 EV rebate and a $15000 rebate, which is $7500 from PFS and $7500 from the dealer. The dealer contribution comes from the bottom line. It doesn’t get pulled put of thin air.
The 22500 is a manufacturer rebate unless the 7500-dealer participation is included in this amount. If it is, it should have been itemized accordingly. A 7500-dealer participation rebate is hard for me to swallow as it aligns with the 7500 EV credit. Maybe someone else can chime in.
But my point is that even though it shows as a $22500 rebate, $7500 comes from the dealer. So even though a disocunt of 6% might not seem like a lot, there isn’t any room left for the dealer since they have an extra $7500 coming off the bottom line.
"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.
A word of caution for potential lessees, though: Just because the dealership could pass those savings onto you, doesn’t mean it will. Dealers aren’t required to give customers a discount on their leases, so it may require some negotiating on your end."
My apologies. I thought the EV credit came directly from the manufacturer to the lessee. Sorry.
I never claimed he was lying. He could have been mistaken. But now I know he wasn’t… my bad. I was only basing my claims on the information the OP provided which is usually not a good idea. Often, second information is inaccurate. If he had posted a dealer worksheet with identical info, I might have had an argument unless, of course, the dealer was wrong which does happen from time to time.
Nerdwallet is mostly incorrect. The manufacturer can pass the EV rebate to the lessee. Porsche does this while BMW does not (most of the time).
Now, a dealer can hide the rebate and add it to their bottom line. PFS requires lessees to sign a document saying they are aware of the rebate. However, it can be easy for dealers of other manufacturers to manipulate selling prices to keep the rebate.
No worries. If you don’t know the programs, it would be impossible to tell that the rebate requires dealer contribution since it isn’t spelled out anywhere in the rebate.
But your advice to OP that they can purchase the car for adjusted cap cost plus tax/fees is correct.
I believe CA is more straightforward, but with states like Illinois where the entire sales tax for the term of the lease is due to the state at signing, is it a little more complex. So on a buyout in Illinois, it will be adjusted cap cost plus lease sales tax plus sales tax on the buyout.
