I would bet that you could make an extra payment equal to the remaining depreciation that would lower your adjusted lease balance down to the rv before initiating the buy out.
To remove the unknown about how they’d treat the extra payment, why not start the lease with a CCR equal to the total depreciation?
Wouldn’t save tax on the depreciation since CCR is taxable too, but would save tax by reducing the rent charge.
Should be listed in the contract how its handled, but yes, a large cap cost reduction would be a better routr when we are talking about the few states that handle taxes this way.
But you can’t tell HFS to allocate extra payment to depreciation though? Unlike a mortgage.
Every lease contract i have seen has specifically applied any excess to reducing the adjusted lease balance.
It doesnt reduce the rent charge on following payments because rent charge is calculated at lease inception and isnt a rolling adjustment.
So if it works as it should, I am assuming HFS contract is the same, you would make an overpayment amounting to the remaining Depreciation and once that has posted you would request a buyout and it should reflect the taxes correctly? Love it.
In theory, thats how that should work.
Of course, then theres the question of what happens if you make a payment that exceeds the remaining depreciation amount. Does that adjusted lease balance go below the residual? Thats what happens on a one pay. Your adjusted lease balance is below the residual and increases monthly by the monthly rent charge amount.
I wonder if you could make a payment for the remaining value of the vehicle and then request a buy out, triggering the taxable event.
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If it gets applied correctly.
GL to anyone calling customer service and attempting to get this rectified if it doesn’t.
I think a CCR at lease inception is a much more efficient way to achieve the same or possibly better outcome
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It’s super interesting to follow this discussion. Realistically speaking how much are you saving going this route vs just buying the car out right? Negotiating the pitfalls of this strategy will require some real work, is it worth it? 
You won’t get the $7500 if you finance the car.
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I agree this is a better strategy. Not as amusing to pontificate over though.
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Every time I see CCR I think its a Creedence reference.
I’m thinking of leasing an Ioniq 5 because of the lease rebate and state incentives available to me. With all the rebates and incentives applicable at point of lease, I will have:
7500 manufacturer rebate from HMF
2500 state rebate
2200 energy rebate
Possibly: 3000 trade in my ICE car rebate (not sure I’m going to do this one as I want my old gas clunker as backup).
In any case, looking at 12-15000 in EV incentives that are applied at signing. My plan is to buyout the lease immediately after signing but I have no idea what the numbers should actually look like in my lease agreement:
MSRP is 47280
Incentives are 12200
Should the MSRP go down because of incentives? Or will it only affect the adjusted capitalized cost? Are those things different? If residual value is too high will that screw my buyout cost? Like what numbers should I be keeping an eye on to know I’m not getting screwed, and what should they roughly look like?
Lease details:
36 months
10k miles
0 down
Msrp is a fixed value. Nothing changes it.
You should be negotiating the selling price for a discount.
Your incentices will cover some fees and then reduce the cap cost.
Right. Can my incentives lower the sale price? Like take 12000 off the sale price of the car?
Or can they only be applied to lower capitalized cost? Does a lower capitalized cost reduce the buyout value of the car like a downpayment does when financing?
Like can 12000 in incentives = adjusted sale price of 47280-12000 or will it adjust the capitalized cost. Is there a difference?
Your sales price is before the application of incentives (or should be. Dealers will often show a sales price including incentives to make it look like theyre giving you a better deal).
For your bottom line, it doesnt make a difference. The incentives are lowering the price you pay regardless.
To put it simply, you need to get the dealer to discount the sales price. Make the dealer an offer, say something like 5% off the MSRP before rebates/incentives are applied.
Alright I’m confused.
The MSRP is 47,380. I have 12,000 in incentives.
I want to buyout the car at 35,380 (essentially the sale price at MSRP minus 12k.in incentives) so I can buy the car at 35,380 after leasing it and then finance it with my bank. How the hell do I do that. Will my incentives do that for me? What numbers should I be staring at intently on my lease agreement to make sure that’s the case.
Why would you pay msrp if you can get a discount?
Dont forget that there are taxes and fees that have to get paid here. Acquisition, title and license, dealer fees, taxes, etc. What state youre in plays a big factor as well.
I think you need to do a bit more research and play with the calculator on this forum. Go to Edmunds, find out what MF and RV you will get for this vehicle, and then plug everything into the calculator to find out what selling price you need for this deal to fit your needs. Then you can ask the dealership for that selling price.
Also as posted above, why not discount it more? From what I’ve seen it seems like dealers are having a little trouble moving the IONIQs off the lot, so you should see if you can get some extra money knocked off the selling price.
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