How can dealers add $7,500 Fed Tax credit to upfront costs?

Ask the Hackrs
1

In shopping around for a lease on an e-Golf, I’ve seen a few where the dealer appears to charge the buyer for the $7,500 Federal Tax Credit up front. Here’s my latest offer:

$298*/month for 36 month lease.
$2,995 Plus $7,500 Federal tax credit due at signing.

I’ve seen this a few times, and it seems backwards, so I must be missing something.

It was my understanding that in a lease, some portion of the tax credit should be applied as a Capital Cost reduction or by being added to the Residual Value.

Can anyone explain this?

2

Find a new dealership. Not accurate. E Bolt, BMW i3-all pass it along. VW doctors up emissions and now doctors up tax rebates. What’s next?

3

I agree the deal is trash, but think their verbiage is accurate, just not worded very clearly. They are taking the 7500 credit as the leaseholder and passing it through to you as a rebate or ccr. They could have worded it differently.