Should I lease or finance?

[CarMan ElecTruck]

According to the numbers I see on the calculator, we still end up paying full price overall.. where does the 7500 incentive go if it does not go to the ‘customer’ ?

Or am I misunderstanding something..?

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[mongo]

According to the numbers I see on the calculator, we still end up paying full price overall.. where does the 7500 incentive go if it does not go to the ‘customer’ ?

Or am I misunderstanding something..?

It goes to the company providing the lease.
Tesla reduced lease payments on other cars when the credit kicked in circa 2023, but Cybertruck doesn't seem to have benefited as much.

 

[CarMan ElecTruck]

Actually paying more overall on a ‘lease/buy’ with the current numbers.. lame

 

[voxel]

Be aware of the wording around purchase as lease and purchase to resell. For reference, under 30D (as opposed the the commercial 45W), one needs to wait at least 30 days before doing a buy out.

https://www.irs.gov/pub/taxpros/fs-2024-26.pdf

30D has nothing to do with EV leases.

 

[mongo]

30D has nothing to do with EV leases.

Yeah, that's why I specifically called out as "for reference" that the 30D part mentioned 30 days, not the 45W.
As in, IRS guidance leans toward a sub 30 day holding period being resale, but they didn't directly say that in the commercial 45W section. So one *might* be better off waiting a couple months to buy out the lease.

 

[voxel]

Yeah, that's why I specifically called out as "for reference" that the 30D part mentioned 30 days, not the 45W.
As in, IRS guidance leans toward a sub 30 day holding period being resale, but they didn't directly say that in the commercial 45W section. So one *might* be better off waiting a couple months to buy out the lease.

Why? The $7500 tax credit in 45W is not my problem. Some captive lenders only pass through $5K or $6500 (i.e Toyota or Hyundai for lower end EVs) as cap cost reduction. Back in early 2023, about half passed zero through including Tesla. I think folks don't understand leases at all. I've seen the 24 and 36 month leases... each month is about $900 in RENT CHARGES (interest) and about $100 in depreciation. It's a terrible lease structured for the benefit of the lender.

 

[somerandomguy]

 

[CarMan ElecTruck]

Better.. but still more overall than finance longer term. (Was 5.25%apr just a couple weeks ago, I’m sure all those deliveries have not been fulfilled)

 

[shopaholic]

Waiting for 2.99% APR to show up soon……

 

[zachsmith]

Waiting for 2.99% APR to show up soon……

the problem with financing now, for most buyers anyway, is no tax credit vs leasing with the tax credit. I don’t know if low financing is any better than the new lease rate (as of tonight) with the tax credit. Anyone else able to calculate the difference?

 

[mongo]

Why? The $7500 tax credit in 45W is not my problem. Some captive lenders only pass through $5K or $6500 (i.e Toyota or Hyundai for lower end EVs) as cap cost reduction. Back in early 2023, about half passed zero through including Tesla. I think folks don't understand leases at all. I've seen the 24 and 36 month leases... each month is about $900 in RENT CHARGES (interest) and about $100 in depreciation. It's a terrible lease structured for the benefit of the lender.

Edit: Yeah, it's better for Tesla not to allow immediate buyouts due to putting their credit eligibility at risk. There is no clawback to the buyer.

Original misguided post:
"Better off" in terms of not triggering a review by the IRS due to an immediate buy out.
It was a response this statement:

It's an immediate buyout candidate

, not a suggestion to actually go with a full term lease. Especially since I posted that leasing with buyout for 36 months costs $20k for a base AWD CT.

 

[BlueLightning]

Can’t lease in my state, so waiting it out for the demand and then the price to drop like the Model Y did in four years. LOL

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