Leasing in 2023 will get full 7500?

[Lucid23]

I just read that if you lease all of the new rules on the 7500 credit do not apply. Apparently, the new rules only applied to consumers getting the credit vs a leasing company.
Anyone
Disagree with that comment? Anyone know the money factor and residuals?

EV tax credit for consumer leases a ‘positive development for industry’

The Treasury Department and the IRS issued some new guidelines on the Inflation Reduction Act’s (IRA) EV tax credit, and for the time being it is bringing foreign automakers some good news ahead of the new year.

finance.yahoo.com

 

[Lucken]

Very interesting. I always do cash deals, but if this is true it could push me towards a lease.

 

[Lucid23]

I agree and it lowers the risk of what if lucid does not make it, you're not stuck with the car.

 

[Sid432]

The numbers are outrageous...

 

[Lucid23]

The numbers are outrageous...

I assume you mean for the lease? I kind of thought I saw somewhere residual was in the mid 50s but not sure of that or the MF.

 

[Sid432]

Yeah - lease....

Initial Deposit - $1000.00
Down payment - $35000.00
48 month * $1119.01 - $53715.36
Total cost for 48 mos - $89715.36
======================
Lease buyout - $46,688.86

They took out $7500.00 tax credit from the MSRP. So, the total for car would have been ~$106000.00 (OTD). Anyone know what APR this lease number entails too and the residual value?

 

[Lucid23]

Please keep posting lease numbers and if they have the credit, I am going to call lucid financial services number today.

 

[Lucid23]

Yeah - lease....

Initial Deposit - $1000.00
Down payment - $35000.00
48 month * $1119.01 - $53715.36
Total cost for 48 mos - $89715.36
======================
Lease buyout - $46,688.86

They took out $7500.00 tax credit from the MSRP. So, the total for car would have been ~$106000.00 (OTD). Anyone know what APR this lease number entails too and the residual value?

So the sticker was 113,500 but total cost would be roughly 136 on the lease (90+46).
I don't mind paying more for protection but if it's roughly 23k that's a lot!

 

[HariK]

Yeah - lease....

Initial Deposit - $1000.00
Down payment - $35000.00
48 month * $1119.01 - $53715.36
Total cost for 48 mos - $89715.36
======================
Lease buyout - $46,688.86

They took out $7500.00 tax credit from the MSRP. So, the total for car would have been ~$106000.00 (OTD). Anyone know what APR this lease number entails too and the residual value?

Just buy a used GT instead.

 

[Slam08]

The article is talking about specifically the 4th requirement that vehicles be manufactured in the US. I don’t think that is why lucid doesn’t qualify for the tax credit.


The $7500 is a tax credit from the government. So if Lucid wanted to give people a $7500 credit they have lots of ways to do it. Take it off the MSRP, add it on the residual for a lease. As the article said, many lease companies find ways to pass the savings on the customer.

 

[Lucid23]

Just buy a used GT instead.

I know people disregard this but the lease protects you from continued loss of value or them going under.

 

[HariK]

I know people disregard this but the lease protects you from continued loss of value or them going under.

But the premium for that is too high.

 

[borski]

But the premium for that is too high.

Exactly. It’s not that people disregard this, but the safety of the lease is outweighed by the extra premium of the lease.

 

[vraj83]

So for 2023 buyers, what’s the downside to leasing - thereby getting the tax credit in the form of a cap cost reduction - and then buying out the lease? There are some extra hoops to jump through, but for $7500 it seems worthwhile?

 

[Lucid23]

But the premium for that is too high.

Perhaps not it you get the 7500

 

[HariK]

Perhaps not it you get the 7500

Do the math buy used GT and resale value vs the lease or buy new Touring and resale value at the end of the lease. Usually the lease might make sense to those who call it a business use and take tax write off.

 

[digiboxer]

Do the math buy used GT and resale value vs the lease or buy new Touring and resale value at the end of the lease. Usually the lease might make sense to those who call it a business use and take tax write off.

Or wait six months and see if low-mile Tourings depreciate proportionately as much as GTs have

 

[ViperSSD]

So for 2023 buyers, what’s the downside to leasing - thereby getting the tax credit in the form of a cap cost reduction - and then buying out the lease? There are some extra hoops to jump through, but for $7500 it seems worthwhile?

Thats an interesting question, what stops you from just buying out the lease immediately, in most cases, this is how you trade in a lease or get out of it early

 

[AirHead]

Thats an interesting question, what stops you from just buying out the lease immediately, in most cases, this is how you trade in a lease or get out of it early

I was very close to taking delivery and was going to do this but BOA has terrible lease terms. They don't give you a new buyout price if you want to immediately buy out the lease. They told me I would have to prepay all the monthly payments and then the Buyout price.

I had to cancel my order because of this.

 

[Lucid23]

I was very close to taking delivery and was going to do this but BOA has terrible lease terms. They don't give you a new buyout price if you want to immediately buy out the lease. They told me I would have to prepay all the monthly payments and then the Buyout price.

I had to cancel my order because of this.

So the only way to buy it out is to pay every lease payment up front and the residual? That's crazy bad, I don't like being locked into something like that.
Did you get the residual? Curious if it's based on what I pay or the current price.
I assume they did not offer a 1 pay?
Finally, did you get the numbers in advance or did you need to have the car ready for delivery.
Sorry for the list!