$7500 tax credit loophole confirmed to work for Cybertruck lease?

[thounderbird]

The $7500 on the doc is Lease Credit but not tax credit. I confirmed it with Tesla staff. Every lease has it; and it has been applied to the monthly pay to reduce the cost.

With least, the final car price is around $95k close to FS price. Not a good deal.

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[mongo]

The $7500 on the doc is Lease Credit but not tax credit. I confirmed it with Tesla staff. Every lease has it; and it has been applied to the monthly pay to reduce the cost.

With least, the final car price is around $95k close to FS price. Not a good deal.

To the consumer it is not a tax credit because the credit goes to the lessor (Tesla or Chase).

 

[panpan101]

Does anyone know with certainty why the CT doesn't qualify for the EV tax credit on purchase? It is manufactured in the US and contains batteries made in the US. What gives?

 

[mongo]

Does anyone know with certainty why the CT doesn't qualify for the EV tax credit on purchase? It is manufactured in the US and contains batteries made in the US. What gives?

4680s are currently made with imported Chinese cathodes which makes them ineligible for any credit under 30D as of Jan 1, 2024...

 

[voxel]

Yeah, the posted doc says the opposite...

That's lease termination. There is a SEPARATE clause for buyout before lease maturity.

 

[cgoats21]

That's lease termination. There is a SEPARATE clause for buyout before lease maturity.

Has anyone posted the actual clause in the contract?

 

[kpanda17]

On X I challenged Dennis, nicely, here is my math, lets review together
who has a phone number that I can call Tesla leasing and confirm?

 

[dsieberkrob]

All Wheel Drive Cybertruck (Florida Registration)	Cash	Lease (36mo. 10K miles)	Lease (36mo. 10K miles)	Finance (5.99% @ 72mo.)	Finance (5.99% @ 60mo.)	Finance (5.99% @ 36mo.)	Finance (0% @ 60mo.)
Down Payment	$7,500	$7,500	$0	$7,500	$7,500	$7,500	$7,500
Taxes & Registration (Florida)	$5,241	$5,241	$5,241	$5,241	$5,241	$5,241	$5,241
Destination Fee	$1,995	-	-	$1,995	$1,995	$1,995	$1,995
Order Fee	$250	-	-	$250	$250	$250	$250
FL Doc Stamp Fee (finance)	-	-	-	$254	$254	$254	$254
Acquisition Fee (Lease start)	-	$695	$695	-	-	-	-
Disp. Fee (lease return = $395)	-	-	-	-	-	-	-
Purchase Fee (Lease Buyout)	-	$350	$350	-	-	-	-
Monthly Payment	-	$899	$1,142	$1,237	$1,443	$2,271	$1,208
Total Monthly Payments	-	$32,364	$41,112	$89,064	$86,580	$81,756	$72,490
Remainder / Lease Buyout	$72,490	$54,930	$54,930	-	-	-	-
Total Paid	$87,476	$101,080	$102,328	$104,304	$101,820	$96,996	$87,730
Interest		$13,604	$14,852	$16,828	$14,344	$9,520	$254

Using the Tesla App with FEE details for each of the options for my purchase and registration in Florida. Assume always paying the state tax and registration out of pocket.

The Destination and Order Fees do not show for the Lease option, but are replaced with the Acquisition Fee, due at signing. The App defaults a down payment of $7500 for the lease, so I kept it the same across the board.

It did allow me to change it to ZERO down, and it left the Lease Buyout amount the same, and just reduced the "Due at Signing" total. This supports the speculation that the $7500 credit is included in the residual calculation. The term and mileage affect the buyout amount.

CASH is always KING... If you have $70K+ in your cookie jar feel free to drop it on the truck.

If you have $70K+ in a high interest savings account drawing 4.5%, or Tesla Stock, or an S&P Fund, then you have to decide if you will pull it out, or finance.

I have never leased a car. I typically finance them at reasonable terms, pay them off, and keep them forever (10-20 years). My numbers above assume paying the lease in full, then buying out with cash. If you financed the buyout, you would of course have more interest. Although, auto rates will likely be very low in 2-3 years. The lease is kind of like an interest only loan.

I added the hypothetical "0% @ 60 months" option at the end, just to show it is always a great option, free money. It's rare even for traditional brands now a days.

Also, if we were to get the $7500 tax credit next year, the finance numbers would all be the same as if you did ZERO down payment and received the credit at signing.

If the truck flops and doesn't sell 500K units a year, or a CT 2.0 is announced, then it could depreciate a lot. If so, the lease gives you a guaranteed buy back. If it is the best car ever made, as many suggest, then I will likely put 20K+ miles a year on it and never want to get rid of it.

I've not decided what I will do yet. I will likely run all the same numbers on the CB, but I'm not sure if the lease has the credit baked in or not.

 

[mongo]

That's lease termination. There is a SEPARATE clause for buyout before lease maturity.

Line 10 is no buyout at end of least term on that document.

 

[cgoats21]

All Wheel Drive Cybertruck (Florida Registration)	Cash	Lease (36mo. 10K miles)	Lease (36mo. 10K miles)	Finance (5.99% @ 72mo.)	Finance (5.99% @ 60mo.)	Finance (5.99% @ 36mo.)	Finance (0% @ 60mo.)
Down Payment	$7,500	$7,500	$0	$7,500	$7,500	$7,500	$7,500
Taxes & Registration (Florida)	$5,241	$5,241	$5,241	$5,241	$5,241	$5,241	$5,241
Destination Fee	$1,995	-	-	$1,995	$1,995	$1,995	$1,995
Order Fee	$250	-	-	$250	$250	$250	$250
FL Doc Stamp Fee (finance)	-	-	-	$254	$254	$254	$254
Acquisition Fee (Lease start)	-	$695	$695	-	-	-	-
Disp. Fee (lease return = $395)	-	-	-	-	-	-	-
Purchase Fee (Lease Buyout)	-	$350	$350	-	-	-	-
Monthly Payment	-	$899	$1,142	$1,237	$1,443	$2,271	$1,208
Total Monthly Payments	-	$32,364	$41,112	$89,064	$86,580	$81,756	$72,490
Remainder / Lease Buyout	$72,490	$54,930	$54,930	-	-	-	-
Total Paid	$87,476	$101,080	$102,328	$104,304	$101,820	$96,996	$87,730
Interest		$13,604	$14,852	$16,828	$14,344	$9,520	$254

Using the Tesla App with FEE details for each of the options for my purchase and registration in Florida. Assume always paying the state tax and registration out of pocket.

The Destination and Order Fees do not show for the Lease option, but are replaced with the Acquisition Fee, due at signing. The App defaults a down payment of $7500 for the lease, so I kept it the same across the board.

It did allow me to change it to ZERO down, and it left the Lease Buyout amount the same, and just reduced the "Due at Signing" total. This supports the speculation that the $7500 credit is included in the residual calculation. The term and mileage affect the buyout amount.

CASH is always KING... If you have $70K+ in your cookie jar feel free to drop it on the truck.

If you have $70K+ in a high interest savings account drawing 4.5%, or Tesla Stock, or an S&P Fund, then you have to decide if you will pull it out, or finance.

I have never leased a car. I typically finance them at reasonable terms, pay them off, and keep them forever (10-20 years). My numbers above assume paying the lease in full, then buying out with cash. If you financed the buyout, you would of course have more interest. Although, auto rates will likely be very low in 2-3 years. The lease is kind of like an interest only loan.

I added the hypothetical "0% @ 60 months" option at the end, just to show it is always a great option, free money. It's rare even for traditional brands now a days.

Also, if we were to get the $7500 tax credit next year, the finance numbers would all be the same as if you did ZERO down payment and received the credit at signing.

If the truck flops and doesn't sell 500K units a year, or a CT 2.0 is announced, then it could depreciate a lot. If so, the lease gives you a guaranteed buy back. If it is the best car ever made, as many suggest, then I will likely put 20K+ miles a year on it and never want to get rid of it.

I've not decided what I will do yet. I will likely run all the same numbers on the CB, but I'm not sure if the lease has the credit baked in or not.

I don’t think anyone is questioning that paying cash is better than a lease. The bigger question is can you pay it off the first month on a lease so it’s cheaper than all options.

 

[sirozha]

I’ve just tried to modify the lease terms. It tells me I can’t make the down payment higher than $17,095. So, the leasing institution wants to make money on the interest, and doesn’t let you put down a larger chunk than 17,095.

So, perhaps it’s possible to make the down payment be $24,595 maximum (including the $7,500 credit to the leasing company that’s passed through to the buyer). The rest will have to be paid monthly with interest to the leasing institution. I doubt they would let us buy out the lease early without making their interest.

By my calculations, The final price of leasing and then buying is about $83,000 plus tax on $51,000 of residual value after 36 months of the lease with the 15,000 miles allowance per year after all the fees.

In other words, it makes no sense to lease if you want to own it and can’t buy out the lease immediately with no penalty. You would end up paying a few grand more than you would buying it outright.

 

[dbielecki]

Long time follower and someone who's ready to pounce before end of year. With that...

It's well proven since Tesla has allowed buyouts in the last few days, whether its an 3/Y/S/X folks are able to buy out EARLY, avoid the rental fees that come with the lease, and if done quickly enough, pay what you would have should you have paid cash instead (outside the $695 and $350 lease related fees). Now whether this is "supposed" to be allowed to happen or not is another thing...but it is consistently how it's working across their vehicles and I would expect to work the same for cybertruck.

The only issue/concern I have is about how the $7,500 incentive is being treated and/or being recouped. So at this point, I'm confident I could lease it today, and buy it out tomorrow (lets assume a week or two later), but whether that will actually let me keep the $7,500 incentive or not and whether the ability to buy it out EARLY is in and of itself a loophole...all speculation at best.

It's also clear their lease contracts are behind the times...old language that hasnt caught up with their new buyout feature and functionality.

 

[CarMan ElecTruck]

All Wheel Drive Cybertruck (Florida Registration)	Cash	Lease (36mo. 10K miles)	Lease (36mo. 10K miles)	Finance (5.99% @ 72mo.)	Finance (5.99% @ 60mo.)	Finance (5.99% @ 36mo.)	Finance (0% @ 60mo.)
Down Payment	$7,500	$7,500	$0	$7,500	$7,500	$7,500	$7,500
Taxes & Registration (Florida)	$5,241	$5,241	$5,241	$5,241	$5,241	$5,241	$5,241
Destination Fee	$1,995	-	-	$1,995	$1,995	$1,995	$1,995
Order Fee	$250	-	-	$250	$250	$250	$250
FL Doc Stamp Fee (finance)	-	-	-	$254	$254	$254	$254
Acquisition Fee (Lease start)	-	$695	$695	-	-	-	-
Disp. Fee (lease return = $395)	-	-	-	-	-	-	-
Purchase Fee (Lease Buyout)	-	$350	$350	-	-	-	-
Monthly Payment	-	$899	$1,142	$1,237	$1,443	$2,271	$1,208
Total Monthly Payments	-	$32,364	$41,112	$89,064	$86,580	$81,756	$72,490
Remainder / Lease Buyout	$72,490	$54,930	$54,930	-	-	-	-
Total Paid	$87,476	$101,080	$102,328	$104,304	$101,820	$96,996	$87,730
Interest		$13,604	$14,852	$16,828	$14,344	$9,520	$254

Using the Tesla App with FEE details for each of the options for my purchase and registration in Florida. Assume always paying the state tax and registration out of pocket.

The Destination and Order Fees do not show for the Lease option, but are replaced with the Acquisition Fee, due at signing. The App defaults a down payment of $7500 for the lease, so I kept it the same across the board.

It did allow me to change it to ZERO down, and it left the Lease Buyout amount the same, and just reduced the "Due at Signing" total. This supports the speculation that the $7500 credit is included in the residual calculation. The term and mileage affect the buyout amount.

CASH is always KING... If you have $70K+ in your cookie jar feel free to drop it on the truck.

If you have $70K+ in a high interest savings account drawing 4.5%, or Tesla Stock, or an S&P Fund, then you have to decide if you will pull it out, or finance.

I have never leased a car. I typically finance them at reasonable terms, pay them off, and keep them forever (10-20 years). My numbers above assume paying the lease in full, then buying out with cash. If you financed the buyout, you would of course have more interest. Although, auto rates will likely be very low in 2-3 years. The lease is kind of like an interest only loan.

I added the hypothetical "0% @ 60 months" option at the end, just to show it is always a great option, free money. It's rare even for traditional brands now a days.

Also, if we were to get the $7500 tax credit next year, the finance numbers would all be the same as if you did ZERO down payment and received the credit at signing.

If the truck flops and doesn't sell 500K units a year, or a CT 2.0 is announced, then it could depreciate a lot. If so, the lease gives you a guaranteed buy back. If it is the best car ever made, as many suggest, then I will likely put 20K+ miles a year on it and never want to get rid of it.

I've not decided what I will do yet. I will likely run all the same numbers on the CB, but I'm not sure if the lease has the credit baked in or not.

Can you add a column with 5.29% APR?

 

[dsieberkrob]

Can you add a column with 5.29% APR?

All Wheel Drive Cybertruck (Florida Registration)	Cash	Lease (36mo. 10K miles)	Lease (36mo. 10K miles)	Finance (5.29% @ 72mo.)	Finance (5.29% @ 60mo.)	Finance (5.29% @ 36mo.)	Finance (0% @ 60mo.)
Down Payment	$7,500	$7,500	$0	$7,500	$7,500	$7,500	$7,500
Taxes & Registration (Florida)	$5,241	$5,241	$5,241	$5,241	$5,241	$5,241	$5,241
Destination Fee	$1,995	-	-	$1,995	$1,995	$1,995	$1,995
Order Fee	$250	-	-	$250	$250	$250	$250
FL Doc Stamp Fee (finance)	-	-	-	$254	$254	$254	$254
Acquisition Fee (Lease start)	-	$695	$695	-	-	-	-
Disp. Fee (lease return = $395)	-	-	-	-	-	-	-
Purchase Fee (Lease Buyout)	-	$350	$350	-	-	-	-
Monthly Payment	-	$899	$1,142	$1,178	$1,378	$2,182	$1,208
Total Monthly Payments	-	$32,364	$41,112	$84,816	$82,680	$78,552	$72,490
Remainder / Lease Buyout	$72,490	$54,930	$54,930	-	-	-	-
Total Paid	$87,476	$101,080	$102,328	$100,056	$97,920	$93,792	$87,730
Interest		$13,604	$14,852	$12,580	$10,444	$6,316	$254

5,29% instead of 5.99%

 

[jt65]

I was texting with Tesla this afternoon and the finance department said this is not true. You still have to pay the full price of the lease even if you are buying it out early. There seems to be inaccurate info somewhere

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