I am looking at leasing a Volvo S60 Recharge so I can get the $7,500 EV credit. The quoted money factor is ridiculous (.0043). So, I am thinking I will just immediately buyout the lease. The dealer is saying that this would net a $5,000 savings over buying the car with cash.
Any red flags? Has anyone bought out a Volvo lease? Am I on the hook for all lease payments for the entire term? How are early lease buyout payments calculated?
I think you can do it. The lease has a term about buy-out before the lease termination. No red flag AFAIK. You can search the forum for previous experiences.
You are responsible for all of the lease payments unless you buyout the car. You’ll have to pay the disposition fee and depending on where you’re located might have to pay taxes. Volvo lets you buy out early but its not free.
I think you always need to pay taxes during buy-out.
Standard buy-out is also not free. I think the key is whether there’s additional penalty on “early buy-out”. I don’t think there is based on the discussions in this forum.
Wait you think you can sigh a 36 month lease, wait one month then buy the car for the 36 month buyout figure??
I think OP is saying that the dealer’s point is that this model isn’t eligible for the EV tax credit on a sale.
So by leasing and then immediately buying out at the agreed upon selling price basis of the lease OP can capture around $5,000 of the EV credit after leasing fees are accounted for.
OP, my Volvo lease allows for early buyout based on the agreed upon selling price less any depreciation portion of the monthly lease payment already made plus the buyout fee (around $450) if I remember correctly.
The lease disposition fee is also $450. So it doesn’t matter if you do early buy-out, standard buy-out, or return the car after lease termination: $450 cost is always there.
Great point
Edit: if you sign a new lease I think that does avoid the $450 fee right?
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