Lucid Gravity Lease Buyout

[krislucid]

Is it possible to lease a lucid gravity and buy it out immediately after first/second month or does lucid not allow early buyout? If they do allow will $7500 credit be clawed back?

 

[RandomDesign]

In accordance with your Lease Contract, the $7,500 EV Credit for lease customers applied as capital cost reduction on your contract may have to be repaid if the lease is terminated within the first eighteen (18) months from the lease contract date, or any other period designed by the Internal Revenue Service as the period for which vehicle sale may trigger recapture (the requirement to repay) of the EV Credit.

From: https://lucidmotors.com/knowledge/o.../vehicle-lease-end#frequently-asked-questions

You'll find this under the FAQ > Financial > "How can I purchase my vehicle?"

 

[krislucid]

Is it possible to lease a lucid gravity and buy it out immediately after first/second month or does lucid not allow early buyout? If they do allow will $7500 credit be clawed back?

Did anyone do the early buyout and had to repay the 7500?

 

[raleighone]

Yeah, I was curious about this, too. However, this isn't very solid information: "may" have to??? Okay. I "may" have to make my car payment this month. LOL. Looks like to be safe from potential clawback, you have to wait 18 months from what I'm reading.

fr FAQ
"In accordance with your Lease Contract, the $7,500 EV Credit for lease customers applied as capital cost reduction on your contract may have to be repaid if the lease is terminated within the first eighteen (18) months from the lease contract date"

 

[Pragmatic]

The whole Federal rebate on leases is a work around on the maximum vehicle price limits congress placed on the program. The way I understand it (and I may be wrong), the capital cost of the lease (selling price minus residual) must be less that the maximum allowable price. By paying off the vehicle early the capital cost may exceed the limit and the purchase will no longer meet the federal rebate requirements. In that case you would need to reimburse Lucid Financial for the loss of the government rebate.

 

[L-Dude]

What's unclear to me is the language "terminate your lease early." So if you make all your lease payments and purchase your car by paying the residual amount, that is considered early termination? You've fulfilled all your financial obligations under the lease.

 

[Bdr100]

The bigger question here is what happens after Sept. 31? Leases from Oct. thru Dec. will have a rebate not subject to any Federal rules but rather what ever rules Lucid (or their lease financier) establish. In this case, either Lucid, the financier or a combo of both is eating the rebate cost. At that point, any penalties for early payoff of lease would be totally up to Lucid/financier.

 

[Pragmatic]

Yes but why would they publicize lenient rules ahead of September 30, maybe not even after the 30th. Well publicized lenient rules for keeping a Lucid supplied rebate will just cause confusion (and possibly resentment) among buyers operating under Federal rebate rules.

 

[TahoeMichael]

The bigger question here is what happens after Sept. 31? Leases from Oct. thru Dec. will have a rebate not subject to any Federal rules but rather what ever rules Lucid (or their lease financier) establish. In this case, either Lucid, the financier or a combo of both is eating the rebate cost. At that point, any penalties for early payoff of lease would be totally up to Lucid/financier.

As I understand it, the wiggle room of "may" is because the IRS may require early lease buyouts to repay the incentive, but they haven't actually published such a rule. Ironically, the chaos of the Trump administration seems to have derailed the rule making on this topic. The full lease contract has a clause about IRS rules.

 

[Ron_Burgundy]

What's unclear to me is the language "terminate your lease early." So if you make all your lease payments and purchase your car by paying the residual amount, that is considered early termination? You've fulfilled all your financial obligations under the lease.

Yes re: “early termination”. Anything prior to lease end is early termination.