Why don't dealers pass on Federal Rebate savings in lease?

Also no requirement that the vehicle be assembled in North America.

Well then what’s taking so long??? :grin: I’m ready for some cheap EV leases. I’d settle for cheaper.

Your assumptions are a little off. SAAR on new cars is expected to come in around 15M (not 68M which I’m assuming you came to by including used cars).

So 5% of 15M is 750k total EV/PHEVs sold this year and depending on the lease pen of this group. 20% is a pretty safe bet but it could go higher depending on how the lenders choose to push more volume to leases. That means 150k leased PHEV/EVs that get the $7500 credit. Some will be lower based on the comparison against equivalent gas models but we’ll stick with $7.5k for this. That makes it $1.125B.

How about the EQB?

No one asked for EQB yet so I don’t know.

I parse the last 24 hours of Edmunds to see what answers say ‘incentive’ and the EQS one leaped out at me.

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EQB, EQE and EQS all get $7500 Lease Bonus Cash if leased through MBFS.


The key is trying to not get blessed.

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I understand those figures on PHEVS are for Individual Taxpayers claiming the credit on there personal return under $30D.
For the $45W Commercial Clean Vehicle Credit for Business use Vehicles acquired (leasing companies) the IRS will be giving $7,500 on PHEVS on all bus subcompact and Micro cars (like Mini Coopers )
as the IRS will use the DOE Safe Harbor report.
The DOE Analysis calculated the incremental cost for compact car PHEVs, which
include minicompact and subcompact cars, to be less than $7,500. The Treasury
Department and the Internal Revenue Service (IRS) will accept a taxpayer’s use of the
incremental cost published in the DOE Analysis to calculate the § 45W credit amount for
compact car PHEVs placed in service during calendar year 2023.

That is until further guidance comes out in March.

For now the IRS has agreed to it on Sales from Jan 1 thru date of new guidance issued, or New legislation passed Amending the IRA of $45W or the IRA, which so far isn’t going to happen since we have no Speaker in the House.

Also though to confuse things for Captives is in that Future guidance is the Potential that the Captive may have to pay back (the IRS recovers) some of that credit when the asset ceases to be a business asset for them, i.e when sold, either to the consumer or the open market after 3yr lease.
So they may or we shouldn’t expect them to pass the entire credit to us. They also need some of that profit to run their business too. But if they pass on 100% of it to consumers count it as a win!

Yes, I am well versed on 45w as it dramatically affects my company’s strategy to offer leases on these vehicles.

Looking deeper into this, it will take some time before all OEMs figure out their procedure to comply with the IRS to get their PHEVs and EVs included in the official list.

This website will be updated regularly as more and more OEMs qualify their models:


You’re correct. I Googled the data and worldwide new car sales are 68M, not US new car sales.

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yes it appears it will.

Have you found that Ally has been doing PHEV leases in 2022? 2023? and are they passing thru some of the credits thru leases?

I posted above in post #41 the current Ally rebate amounts that they have posted so far this month. Last year they did $7500 on the 4xe as well as some random amounts below that on the Prius Prime and Rav4 Prime.

Is there any insight yet as to whether GM will share some or all of the $7500 on a Chevy Bolt EV/EUV lease?

Super helpful RVguy. I guess to find out which dealers work with Ally- do I have to call a few dealers and ask if they work with Ally? I am thinking about the rav4 prime or ford escape phev- but not sure how to start. Also, is it too simplistic to think that that on a 36 month lease for those that offer $7,500 - lease payment would go down by roughly $208/month (7500/36).

If it’s taxable its more like 185

All else being equal, yes. But MF can up and RV down, etc.

If they will do it we will have crazy $150/m lease.

That’s what I’m hoping. I had a $142/mo Volt lease with zero down many moons ago when they shared the original $7500 tax credit.