Shouldn't the EV federal tax credit be deducted from vehicle cost

Hello,

I’ve been shopping for a Kia Niro or Hyundai Kona EV. I know, currently, there’s been a lot of demand for these cars with few supply and some dealers are marking up the prices. However, for a lease, since the consumer does not get the federal tax credit, shouldn’t the vehicle cost be reduced with the tax credit? The quotes I’ve been getting does not factor this in. TIA.

Why should the vehicle cost be reduced? On a lease, the owner (captive) gets the benefit. It’s up to them to pass all or none of that down. They aren’t obligated to.

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See your title: the word is “rebate”, which means the buyer gets it after the purchase.

The leasing company buys the car and rents it to you, so they can choose to pass all or nothing on to the leaser. Time cost of money and all that.

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I have a GLC350e. Mercedes reduced the price of the car by the tax credit they were going to receive. I hope that helps.

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Thanks for all responses. Thanks Napoli, correct it appears that most EV’s reduce the price by the tax credit or add the tax credit to the residual (Tesla), except for Hyundai and Kia. Reading some of the other posts, guess it’s best to wait to next year as this was the first year for these EV’s. Anyone with that leases these EV’s let me know if this wasn’t the case. Thanks.

You said it yourself…it’s about demand. Kia and Hyundai don’t make enough of them to have to discount. Yes, the credit is meant for you IF you buy the car.

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