Specifically asking for lenders and members tax credit (not the fed tax rebate).
Govt. charges lenders 6.25% of Selling Price ( I don’t think it’s on MSRP, it’s on the selling price).
Lenders/ lessors pass those to leasee.
But some dealers can provide credit against those as L&M tax credit. Some bring them to 1% of selling price, any one has seen 100% credit offered by any specific dealers?
From reading around, it looks dealers have a few numbers of tax credits to give. Do they get those at the beginning of every month? Or at the start of the year?
I’m looking for an EV, smaller size (tight garage space for a second car) - probably crossover or sedan like Polestar 2, with current $299 pm and Costco credit, but not very picky and can move decision based on where I can get the credit.
CCAP had* 100% tax credits up until March of this year. GMF L/M fee is 1.2%, Ally 1.5%, and USB 1.25%. USB is really not a player in the EV game, but are a great option for High End vehicles, and SUV/Trucks.
Lyriq/Blazer EV are super competitive as of this month, as long as you are in the right market, and qualify for the right incentives. They’ve made the rebate matrix a maze this month, but it will lead to lots of hacks on these units.
Thank you. I’m new to leasing so hope does it work with traditional lenders (USB, Ally, etc. ) vs. manufacturers financing arm lending? You go to dealer with a quote from your traditional lenders? How is MF and RV determined ? Are they same as leasing from the latter?
Or can you go ahead with lease from the latter and then change lease to these traditional ones?
They’re all direct lending options. Ally and USBank are non-captives (afaik). Some dealers don’t or won’t use USB/Ally, and mandate that their captives are the only option. Captive is the manufacturer’s lender to be clear.
Smart dealers will get you the best value for what you’re looking for, but some will insist on captive because they have tenuous relationships with non-captive lease returns.
The lender tax credits are on a month-to-month basis. Some months the lender provides them, some months they don’t. And even when they do, it’s not always on every vehicle within the brand. It may be targeted to one or a few different models, not the entire product portfolio. The amount of tax paid is also set by the lender. Some offer 100% sales tax credit, some make you pay a portion of the sales tax, i.e. 1%, 1.5%, etc.
I wish there was an easy way for this info to get out there but there really isn’t.
With GM specifically- I’ve been pushing on our rep to get tax credits across the model line. At the moment, we only have full through GMF on lyriq blazer equinox and xT5.
It has me working each deal on every other model differently- looking for different options based on mileage and terms needs, if there is a tax trade involved, and what rebates are available-
It’s a challenge, but a niche that 99% of dealers just avoid entirely.
