Thank you all! So essentially its not even a rebate where dealerships would check your income (lol) but more like hey we will increase your lease incentives by this amount since we will somehow get a kickback from the govt type of thing. This makes a ton more sense!
Correct, the leasing company is getting any rebates that are qualified for and deciding how much, if any, of that rebate gets provided to the customer. Their options for âproviding itâ (so to speak) can be either a formally stated rebate in a set amount, a change the money factor, or a change in the residual value.
Generally, the ideal scenario is that the leasing company provides the full EV incentive in the amount of a true rebate (which gets treated very similarly to a down payment)âŚâŚonly the customer didnât have to make it. Tesla doesnt do this.
Just to be specific:
Section 45 of the Inflation Reduction Act put in place a $7500 tax credit for businesses that purchase an electric vehicle for commercial use. The commercial use, in this case, is leasing their vehicle to a customer. So the lessor purchases the vehicle and then they get a $7500 tax credit for having done so.
As a result, they have the ability, should they desire, to incentivize their leases. When people talk about getting a $7500 tax credit on leases, what theyâre really talking about is the lessor getting a tax credit and then offering an equivalent amount incentive. Some banks offer $7500. Some less. Some not at all. Some do it as a cap cost reduction so it comes off the buyout price. Some increase the residual value or decrease the money factor, lowering the overall lease cost but not the buyout price.
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Could someone explain whatâs going to happen after the March deadline for the Tesla cars? I am assuming section 45 is not affected by the march deadline whereas, for finance, Tesla cars would only qualify for a $3250 rebate instead of $7500. Correct me if I am wrong.
I think I would either lease or finance an M3 as a second car for the city commute in June/July. I am guessing the cost might not fluctuate too much from now and then.
Depends what the Fed/Treasury rules on the battery sourcing/assembly requirements.
Unless you are a gov insider⌠no one knows for sure.
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MMR UP please.
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Is this because now the Y model also qualifies for the 7.5k credit as an SUV under 80k?
Sorry wanting to clarify something as I think the forum are reading this differently from what a Tesla call center guy told me. I asked him - if I lease an m3 is it the case that the $7500 federal is already factored into the figures on the website or is this something separate. I thought he said this is on me and not reflected in the website lease prices. Is that wrong?
Thatâs wrong. Tesla gets the credit as the owner of the car, how much they pass along to you or not is irrelevant since they donât let you buy it for the residential (and they can adjust the interest rates or residual to take it all back even if they reduce the purchase price by the credit), just look at the total monthly price.
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Ok so on that basis, the Leasehackr calc seems to be significantly in favor of a loan instead of lease in terms of total 3 year costs on a standard M3, being eligible for the $7500k and a reasonable downpayment ($3500). Would you agree?
Itâs all going to depend on what a 3 year old M3 RWD with 30,000 miles is worthâŚâŚ thatâs the wildcard.
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Teslaâs leases werenât great without the tax credit. With it, the M3 (non performance only) gets a lot better but still nothing great, and you canât buy it out which removes any potential equity.
If you qualify for the tax incentive from financing, that is going to almost certainly be the way to go. The only problem is if their values tank, of course. But worst case you just hold and use it long term and then that doesnât really matter.
Iâm not so sure itâs a âwildcardâ â they have been selling, more or less, the same vehicle since 2017.
Thatâs alot of data⌠all of it suggests a lease will require one to abandon positive equity.
And I totally would have followed that line of thought until December 2022âď¸
Since then everything historical that I thought I knew about Tesla pricing kind of went out the window.
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Tesla prices have always fluctuated. Rebates/incentives have come and gone.
Over time, seasonality changes regress back to the mean. Am I upside down on the MY I hold now? Yes. Did I pay for that MY with positive equity while the market was right side up? Also Yes.
The real losers since Dec 2022 are the dealers who held overpriced inventory. Eventually that glut will be eliminated. I think the real change will occur between HW4 and the next refresh.
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Just picked up my 2023 metallic gray M3 RWD after about a 10-day wait.
The technology such as Autopilot, entertainment system, navigation, 15" screen, etc. are great.
This car is supposed to do 0-60 in 5.8s. My 2018 BMW 330xi was supposed to be 5.3s.
But there is no way the BMW would beat this in 0-60.
I have to watch myself as Iâm up to 50mph in the Tesla before I realize it.
The ride is comfortable but not plush. Itâs no Lexus.
Handling and feel are much better than I expected.
Overall very happy so far.
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