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.

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

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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.

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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.

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I heard the proper nickname is Maserati Manchin.

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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