Should I Break My EV Lease Early Before Tax Credit Ends?

Ask the Hackrs
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I’m 7 months into a 24-month, one-pay EV lease ($7k upfront, effectively $291/mo). With the $7,500 tax credit ending Sept 30, I’m wondering if it makes sense to try for a new 36-month lease now, while dealers might be desperate to move EVs. Main goal is to get into an ev now so that when I’m next due for a car, the auto industry and ev sector isn’t so crazy.

Has anyone here gotten out of a lease early for a better deal? Is it worth paying the penalties if I can lock in a longer-term lease with current incentives? Any tips on timing or negotiating with dealers would be awesome!

Looking at Blazer, Lyriq, Challenger EV, Prologue, or any other great ev deal. Thanks!

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Can you transfer your lease? “Breaking” will most likely be a blood bath. Also have a hypothetical deal lined up before transfering out.

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Season 4 No GIF

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Breaking your lease now will probably cost you more than the $7500 savings with a new one.

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I’m new to the leasing game. Can you explain this a bit more? I’m guessing there are some type of early termination fees, but those fees would account to more than 7,500? Since it was a one payment lease, I was hoping at worst I would have to consider that a sunk cost.

I’m also considering a lease take over or something like that to recoup some of the 7,000 I put into it.

Anyway, this may all turn into nothing. Thought it was worth an ask to the community.

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Yes good suggestion. It feels like someone would be willing to do a take over since I considered a 24 month one pay lease of $7,000 an alright deal.

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If you break a lease early, your car is not worth RV+LeftoverDepreciation, but whatever the Manheim auction thinks it’s worth.

For Example, I have over a 1 year left on my Nissan Ariya Lease. RV is $33000 + Left Over Depreciation ($4700). So you might think I owe $4700 if I break my lease now.

HOWEVER

The Wholesale Value of my Car is $20,000 right now for similar model (With less miles at that!)
So instead of $4700, I owe $17700. (4700 + 13000).
So to gain $7500, I would have to give them $17700.
No thanks I’ll just make the rest of my payments. ($6900) and keep the car till the end of the lease

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You paid TTL on the current lease and prepaid 17 more months of utility and 7/12ths of a year of CA reg, and you’d owe money to exit your lease - read the early termination section of your lease contract to get exact details.

On the new car you will owe TTL again including CA reg, and rebates are taxed. And didn’t CA doc fee just increase or is about to?

Someone without a trade wouldn’t net $7500, you are throwing away all that prepaid utility AND netting less than $7500

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Really appreciate you taking the time to write this. Exactly what I needed to know. Early termination is no longer a scenario. A lease takeover still might make sense.

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Thanks for this. Heard you’re looking to take over a lease?

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I do not assume other people’s used leases, nope

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A lease ends in the following ways:

  • Pay it all the way to the end term
  • Use a manufacturer’s “pull ahead” (get into another lease from that brand early)
  • Transfer it (if allowed)
  • Buy it out and purchase the vehicle
  • Lemon buyback
  • Car gets stolen (not recovered) or totaled (this includes snowy off ramps)
  • You die and have no co-signer/co-registrant/co-obligor
  • File bankruptcy
  • Stop making payments altogether (repo or turn in)
  • Turn it in early (legit) and prepare to take a beating on payout

Good luck with your choice.

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While you didn’t give much context on what brand it is, assuming a GM product based on your prior posts?

When the time comes you may be able to extend the lease and get another 6 months out of the lease as an option. Just a thought anyways.

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Just ride it out and see where you are in a year. Chasing $7500 is not worth it IMO

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It was a joke

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Yeah this makes the most sense

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Good option. It’s a 24 Chevy blazer ev. Been a great car so far.

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You can always put it up for transfer and see if anyone bites… there’s almost no cost of doing that on here or on craigslist

Private Transfers

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