I will be trading in my current vehicle that I own. I will be leasing a new car to take advantage of the tax credit and then immediately buy the car out. Will my trade in lower the buy out price of my lease?
on a lease? It lowers the total buyout but not the RV which is the buyout at the end of the lease.
Ok so if I play on buying out my lease after the first month the RV is irrelevant correct? Crude numbers- Let’s say my trade in value is $15000 and the new car msrp is $60000. My lease buyout would be $45000 correct?
What are the mystery cars?
In addition to paying sales tax on the buyout, you’ll be paying the lease acquisition and lease buyout fees (most captives have instituted one).
Really depends on which make you’re trying to get. Some captives are notoriously slow, and may also wait for the DMV work to be processed. Plus additional title/registration fees.
Trading in an Audi for a Volvo. $7500 EV tax credit if you lease. I would buy out immediately. Just need to know if that trade in will reduce that immediate buyout price.
I understand those fees are there for a buy out. I would be buying out a Volvo lease just to take advantage of the $7500 EV lease credit even if I only save another 5 or 6k after the lease buyout fees etc. I am just looking for if my trade in of $15000 will lower my buy out cost by $15000.
If I Googled correctly MO has a trade-in sales tax credit, so trading-in will save you ($15k * sales tax), and should reduce your buyout by $15k
If you are not buying this until the end of lease: structure that as MSDs + and pay all your fees up-front, apply the rest as CCR. If you are writing VCFS a payoff check as soon as you can login, they can just apply it as a CCR.
Not Volvo but there are lots and lots of posts that illustrate the math if you search on this site (eg “lease immediate buyout”).
So you’re planning to buy a Volvo EV? Not sure it is good move given how much more EVs depreciate compared to ICE cars.
It’s a hybrid limited production vehicle. Looks like they hold their value. Thanks though.