3rd party leasing to get tax credit?

[Omer]

I know Tesla is one of the few automakers that keep the $7500 tax credit when leasing and don't pass it through to the buyer.

Does anyone know of a 3rd party leasing company that will lease an X and pass through the credit? I don't care about bad residuals or money factors because I would just pay off the lease immediately after purchase and keep the credit

 

[HankLloydRight]

I would just pay off the lease immediately after purchase and keep the credit

Then why not just buy the car outright? Why go through a leasing company if you’re just going to buy it right after leasing? Are you over the income limit? Seems a little convoluted just to get the credit.

 

[ucmndd]

Then why not just buy the car outright? Why go through a leasing company if you’re just going to buy it right after leasing? Are you over the income limit? Seems a little convoluted just to get the credit.

Likely because they exceed the income limit for the credit.

 

[E90alex]

Then why not just buy the car outright? Why go through a leasing company if you’re just going to buy it right after leasing? Are you over the income limit? Seems a little convoluted just to get the credit.

Model X doesn’t qualify for normal credit because it’s over $80k

 

[CapeOne]

I know Tesla is one of the few automakers that keep the $7500 tax credit when leasing and don't pass it through to the buyer.

Does anyone know of a 3rd party leasing company that will lease an X and pass through the credit? I don't care about bad residuals or money factors because I would just pay off the lease immediately after purchase and keep the credit

I'm not sure how it would work under the current tax credit rules but automakers in the past (including Tesla) typically included the tax credit in the lease one way or another.

In Tesla's case, they would take the credit and add it to the residual (lease end) value. If a car had a residual value of $60,000 and the tax credit was $7,500, Tesla would take that $7,500 and make the residual $67,500. I never liked the way Tesla did this as it made the car $7,500 (in this example) more expensive for the customer/lessee to buy at lease end if/when it was an option.

As far as the Model X goes today, it doesn't qualify under the current federal rules anyway since the MSRP is too high.

 

[Darmie]

Model X doesn’t qualify for normal credit because it’s over $80k

Bingo.

And from Tesla's web site.

Model X is not included in their chart.

 

[Omer]

Then why not just buy the car outright? Why go through a leasing company if you’re just going to buy it right after leasing? Are you over the income limit? Seems a little convoluted just to get the credit.

No income limits for cars over $80k. They can only get the tax credit when leased

 

[Omer]

I'm not sure how it would work under the current tax credit rules but automakers in the past (including Tesla) typically included the tax credit in the lease one way or another.

In Tesla's case, they would take the credit and add it to the residual (lease end) value. If a car had a residual value of $60,000 and the tax credit was $7,500, Tesla would take that $7,500 and make the residual $67,500. I never liked the way Tesla did this as it made the car $7,500 (in this example) more expensive for the customer/lessee to buy at lease end if/when it was an option.

As far as the Model X goes today, it doesn't qualify under the current federal rules anyway since the MSRP is too high.

Yeah most manufacturers will deduct it up front as a cap cost reduction just like if you paid a $7500 down payment. So if you pay it off the next day your payoff is $7500 lower than the real purchase price... I did that with a Wrangler 4xe

 

[Omer]

Bingo.


View attachment 958610

And from Tesla's web site.

View attachment 958611
Model X is not included in their chart.

There's a loophole for leased vehicles it's under a different section of the law and doesn't have any of the income or MSRP limits. Tesla takes advantage if that and collects the $7500 credit on every leased car including Model S/X. They just keep it unlike other manufacturers that pass it on to the lessee either as a down-payment credit or adjusted residual.

 

[HankLloydRight]

In that case, contact Doering Leasing. Tell them Hank sent you.

 

[Omer]

In that case, contact Doering Leasing. Tell them Hank sent you.

Thank you very much