Ioniq 5 Leasing as a backdoor into the EV tax credit

I have an Ioniq 5 reserved. I’ll be purchasing it when it arrives in 2 weeks. I haven’t asked the dealer about leasing it to get the $7,500 tax credit applied as a cap cost reduction. VW just started allowing this. A post on LeaseHackr suggested getting the VW lease and then refinancing at a better rate for immediate buyout.

Is this the kind of thing that Hyundai will start doing? Does Hyundai allow owners to buy out leases without a substantial penalty? The Hyundai chat is full of people talking about the recent Tesla price cut all of a sudden making the Ioniq5 much less attractive vs the Tesla.

Hyundai financial may at some point decide to pass on the s45 tax credit, but they currently do not.

1 Like

Nothing yet on the I5, no one wants to incentivize it.

1 Like

This is a passthrough of the $7,500 tax credit. No contribution on the part of HMF, or any other leasing group. Opportunity for brokers?

President Manchin’s IRA killed the EV credit for the Ioniq 5 in mid August 2022, as well as for German VW ID 4s. There is a loophole that unlocks the tax credit if the vehicle is leased.

Article about the lease unlocking of the tax credit

Blockquote In short, for a leased vehicle, the commercial tax credit can be taken by the lessor, regardless of whether the vehicle was assembled in the US. This means dealerships can get $7,500 in tax credits for each leased EV.

This credit, then, could be passed on to the consumer in the form of reduced lease payments, as the dealership will effectively recognize an additional $7,500 in tax credit revenue from the lease of that vehicle.

I leased a Chevy Volt several years ago. At that time, I could only get half of the credit as a cap cost reduction. It was a take it or leave it proposition. Chevy took the other half.

There are plenty of other threads discussing Section 45. Aside from HMF, unless some credit unions announce some programs (@rvguy elbow elbow) Ally seems to be the only third party doing anything with leases and passing through the credit, but I haven’t seen any reports they are specifically on Hyundais. Maybe read-up and reach out.

If the Brokers had an angle, it would be advertised here in the Marketplace.


I heard the proper nickname is Maserati Manchin.

1 Like

OK, I ran the rate checker lease/buy comparo, using HMF lease and finance rates for my agreed-upon price for 36 months.

For the January 2023 rates, it is $5,300 cheaper to buy instead of finance. If they passed through the whole $7500, the lease is cheaper to me than purchase by $3100. This all at no cost to Hyundai.

The Hyundai CEO said that he wants to move his lease rate from 5% of EV sales in 2022 to 30% in 2023. It will be hard to hit that target unless HMF changes the package substantially.

And when they do, I’ll be there…lol