It used to be 7/4 for leases and 12/25~ for Purchases
It’s all now 9/30
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Mercedes right now is going super aggressive trying to get rid of their evs and hybrids. Finally good deals to be had on the GLE450e’s
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How are they
when they just absolutely gutted EQS and EQE incentives? Yeah, GLE deals did get better but that’s about it.
Maybe? Or maybe the people selling the vehicle know something you don’t?
I remember at Volvo when costco would be ending and I would tell customers “Hey guys AS PER COSTCO’S WEBSITE, the costco rebate is going away at the end of the month!” Fast forward to the next month…“What do you mean the costco incentive is gone? You priced us out last month!”
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This is an attitude I’m seeing in lots of places, and I just don’t believe it’s true based on my experience as a manufacturer insider. The whole point in cutting the tax incentives is to cut the market for EVs. After the tax incentives are cut, the administration will go after the state and federal mandates, giving manufacturers the freedom to dump EV production and sales in the US.
For decades you’ve seen different types of product being offered in different markets, and I believe that’s what you’ll start to see here in the US (at least that is the administration’s and manufacturer’s goals). EVs may be sold in particular models, but we’ll see a return to an increase in their most profitable production lines (trucks).
Manufacturers don’t want to build EVs. They like money. They don’t care what technology makes them that money. EVs will continue to lose money or make very little for another 2 decades, at least, for anyone outside of the Chinese OEM market.
If the manufacturers and the administration continue to achieve their policy goals, the EV market in the US is going away, and the deals will be gone with it.
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97/3. That’s about my experience on this site with magical thinking vs doing the math.
You can’t lose $7500 in CCR or subsidized residual or money factor without a big payment increase. Do the math with and without, toss in some estimated future manufacturer rebates, lower the MSRPs but increase the rent charge, etc and you’ll see the future for leasing EVs just got pretty expensive.
If there was a $120/mo sign and drive 24 month EV lease in my future I’d be thinking about where that $325/mo the $7500 would save me was going to come from in October.
Without a doubt that tax credit was the best ‘lease hack’ available.
This new up to $10,000 tax deduction for American made car purchases is for suckers. How many people earning under $100k/yr are going to buy a vehicle they have to pay $10,000 in annual interest alone? Then they only get to deduct at whatever their tax rate is for the next 3 years until 2028 on that Bentley or Ferrari. Oops! Pardon me. Those aren’t American made. I guess they’ll have to go with the Cadillac Celestiq. Maybe for a few extra bucks they’ll toss in the missing “ue”. The average buyer is actually going to only see about a $400 a year tax break for 3 years IF they buy this year.
I think what this new law has demonstrated is how easy it is to fool lazy, complacent, judgmental Americans and how sad we have become as a nation. $10k is more than $7500 so we must be ok there, right?
We’ve already seen one rural Nebraska hospital announce they’re shutting down because they can’t afford to stay in business under the new law. I’m sure that’s ok because they probably only served patients with gender issues and undocumented immigrants.
I guess if a person really wanted to be a taxhackr they could look at buying, not leasing, an EV before October to get the $7500 tax credit and the interest deduction. That is, unless there is stipulation preventing double dipping.
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So there are plenty of lower income people with bad credit driving around jeep compasses with a 22%+rate
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What is your point? How do you know their personal finance information or are you just pulling stuff out of the air attempting to make the extreme case?
sigh
You “hack” leases for fun. It saves you money and can be enjoyable. Hell you could probably call it a hobby!
I work in a dealership, every day full time since 2013 and part time (summer and winter break) since 2009. Most recently I worked at store where the average credit score started with a 5. We saw more 400’s than 700’s. How do I know personal finance info? Idk man I submitted their credit apps for approval?
I am not a pro “big beautiful bill” guy, HOWEVER I do have my feet firmly planted in this particular market.
Your feelings might be hurt. You might not like this bill, I know I don’t but stay in your lane
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But lower income people get little benefit from a deduction. If their marginal tax rate is only 12% (which is the marginal tax rate for the median household) than if they have $2,000 of interest payments they only save 240 bucks. Importantly, this doesn’t reduce one’s FICA tax, which for many lower income families is actually more than their income tax rate.
I expect you will have very valuable insight into what your manufacturer is trying to do with their EVs as the 9/30 deadline approaches. Certainly the dealers on here have more info than anyone else and I am definitely not one of those people questioning you that prices for EVs will go up post 9/30.
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I honestly have no idea what my former brand (volvo) is going to do. I know they wanted full EV by 2030. Now its 90% ev and plug in…honestly it feels like both the government and manufacturers have no actual plans, just hopes and prayers
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I’m still unable to find your point.
What exactly do you think my lane is and what is yours? As far as I can tell you schlep credit apps for a living.
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bruh those are your words not mine.
I am not just pulling stuff out of thin air as you so accused.
My point is deducting vehicle interest isnt for the guy financing an S class. This will help people making 50k who are financing a 35k compass at 22%. There are far more of the latter than you think.
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I stand by what I wrote. Please share specific information on the person or people with the $50k income and $35k at 22% loans. Term? Is that with tax, license, money down,…
I don’t need living with a low income explained to me. Been there, done that. You get one of those life changing high interest loans with payments you can’t afford while just trying to get some stability in your life and it can be many more years of bad credit added to the existing fire.
As EC99 and I have attempted to point out, if you don’t have a large tax liability your tax savings are negligible. I can see this heading to dealerships telling customers not to worry about inflated interest rates because it’s tax deductible. Yeah, they’ll pay $28k in interest on that 22% loan and get back maybe $600 over 3 years. Aren’t they lucky!
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My point is they will be paying that interest no matter what. At least now they get SOME tax advantage.
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Instead of that $35k Compass they could claim the EV tax credit at the dealership at the time of sale. They could get $7500 off a $34995 Equinox EV 1LT for $27495 without any other discounts or rebates applied.
Talking up to a $10k tax deduction when the opportunity is really for getting a couple hundred bucks back on a tax return is a sucker’s enticement. Anyone that’s been around knows dealerships are going to use this to say the jacked up interest rate doesn’t matter because you’ll get it all back in taxes.
That is my point.
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Sorry but we all suffered a lot over the delivery of your 23 mach-e (the one that didn’t catch fire before delivery) so you cant trade this one yet.
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Have you seen what the ev adoption rate is by income bracket? No? Didn’t think so…Do you know the LTV on a new Equinox with a tier 6 credit approval is? No? Didn’t think so…
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Where did my sad star go? This is an angry star!
Why did you engage him?
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Did you know that not all people are as uninformed or as uneducated as you think they are? No? Didn’t think so…
Help me to understand how the loan to value on a Jeep Compass without a $7500 down payment is lower than an Equinox EV with for a customer with a tier 6 credit approval. You do know that loan to value is independent of credit worthiness, right?
A $35k Compass with $0 down is 35000/35000=1 * 100, or 100%
A $35k Equinox EV with $7500 down is 27500/35000=.786 * 100 or 78.6%
In case you’re not aware the lower number is the better one.
My thoughts on the take rate of EVs has more to do with dealerships and sales people not understanding their programs, how to properly calculate leases and/or an unwillingness to pass along incentives/discounts. You’re not doing anything to change that.
You should stop.