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

[Jack27]

Yeah I would have bought one already if they could confirm it. I’m sure others would too

Sure you would of

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[JerseyMike]

Yes please someone that has done a lease buyout PLEASE chime in! This is common practice at legacy oem's the salespeople even encourage it explaining it to customers as a selling point. Saw this on leasehacker...

Tesla Cybertruck lease buyout
Ask the Hackrs
Buy/Finance
Nov 29
voxel
Super Supporter

I received my $80K Cybertruck lease contract today and want to confirm the language in the contract allows me to buyout early at the adjusted cap cost without any funny business. Half of the $15K cap cost reduction is the $7500 (commercial/45W) EV tax credit.

Here are the pertinent sections:

PURCHASE OPTION. You may purchase the Vehicle from us if you are not in default, on an AS-IS, WHERE-IS basis, at any time before or at the end of the Lease Term. To purchase the Vehicle, you must pay the sum of (a) the amount in Section 14 if you purchase the Vehicle at the end of the Lease Term, or the Adjusted Lease Balance plus the purchase option fee in Section 14 if you purchase it before the end of the Lease Term, plus (b) any related official fees, such as sales tax, other taxes, title, tags, license and registration we are required to collect, plus (c) any past due Monthly Payments and any other amounts you owe under this Lease. If you purchase the Vehicle, you will transfer title, re-register the Vehicle and remove and return the license plates (if required by law) within 30 days after purchase or any shorter time required by law. You will sign any additional documents necessary to effect the purchase. We may, at our option, apply any credits or security deposit under this Lease towards the purchase price
(3) Adjusted Lease Balance: The Adjusted Lease Balance equals the Adjusted Capitalized Cost minus the sum of all accrued monthly Depreciation for each Monthly Period before termination of this Lease and the Monthly Period in which this Lease terminates.

Purchase Option at End of Lease Term. You have an option to purchase the Vehicle at the end of the Lease Term for $ and a purchase option fee of $ , for a total of $ . The purchase option fee does not include fees for tags, taxes or registration

Thanks, this clears it up
So the cost in this scenario would be:

(a) the adjusted lease balance (adjusted capitalized cost of $65,235 - depreciation for each month) plus the purchase option fee ($150) in section 14

(b) any related sales tax, tags, reg, etc….we are required to pay (likely varies by state and will likely add for NJ would probably include additional tax of 3.125% of the capitalized cost or possibly the entire initial balance), also given that you have to re-title and register….i’m thinking the NJ 4 year new car registration would be lost and that is about $1000

(c) any past due amounts.


Total in this case the initial price was $82,235 - 2000 referral credit = $80,235
adjusted lease balance if done immediately: $80,235 - $7500 tax credit -$7500 downpayment = $65235

if purchasing immediately it appears to be the following = $65,235 - + $150 + tax (varies by state) + title/tax/reg (varies by state) + initial downpayment (7500) = $72885 + the new title/tax/reg
however that does not include the acquisition fee: $695 and the initial months payment which are both due at signing (initial payment would likely also reduce the adjusted leases balance)

so It saves you as much as $7350 because of the fee and can stack with the $2000 referral for a total of $9350 off not bad at all but I believe you would also have the acquisition fee and initial months payment interest portion as losses.

only real wild cards are how tax/title reg is treated: ie…in NJ new cars require 4 years of reg fee which is likely over $1000 for an EV now but you only pay 3.125% tax on the EV which I think applies prior to rebates but not 100% sure…….either way you are likely out at least a years registration and fees but that is well worth the savings.

big decision for me is whether to buy now given the really competitive pricing or wait it out for the used market to come down or lease and see where the market goes and make sure I don’t get a lemon and then buyout at some point early if it makes sense based on the used market not completely tanking.

either way thanks for posting, it confirms that there appear to be a significant savings if you lease and buy out early (I’m not surprised because this has been going on for a number of years for other EVs where leases allow for the tax credits to apply)

 

[JerseyMike]

I also forgot another wild card partly because i have never leased….not sure how sales tax is when you trade in…I have a $38k trade in that I own outright and would reduce the total sales taxable amount, not sure if that applies here or not given that it is a lease……that can be a sizeable amount and really eat into the $7500 depending on the state (NJ it would be around $1200 for me, add in the acquisition fee, loss of reg and buyout fee and it drops the $7500 savings down to around $4500 which is still likely worth it)

 

[MXSD]

either way thanks for posting, it confirms that there appear to be a significant savings if you lease and buy out early (I’m not surprised because this has been going on for a number of years for other EVs where leases allow for the tax credits to apply)

No problem the math is pretty simple only question is will Tesla in fact allow early buyout since they only recently even allowed any end of lease buyout. Yah the other EV manufacturers have been allowing this but it is Tesla they don't do things like everyone else for better or worse haha. This is the biggest cybertruck forum there is! hopefully someone that's done it can chime in!?

 

[JerseyMike]

No problem the math is pretty simple only question is will Tesla in fact allow early buyout since they only recently even allowed any end of lease buyout. Yah the other EV manufacturers have been allowing this but it is Tesla they don't do things like everyone else for better or worse haha. This is the biggest cybertruck forum there is! hopefully someone that's done it can chime in!?

based on the wording of the contract that is posted they do allow it.

I also just confirmed that NJ does allow tax credit for trade in as long as the dealer uses the "Total lease payment method" and not the "Original purchase price method" to calculate sales tax

 

[MXSD]

based on the wording of the contract that is posted they do allow it.

I also just confirmed that NJ does allow tax credit for trade in as long as the dealer uses the "Total lease payment method" and not the "Original purchase price method" to calculate sales tax

Yah that part won't help here in CA ?you pay sales tax on full vehicle purchase price, trade in doesn't reduce taxable amount unfortunately.

 

[Jack27]

It must of been hard to go as long as it was with out a tax credit thread

 

[Flex3269]

Using financing to buy out a lease? Only in America.

yes, this is in reference to buying the car out immediately after signing the lease just to take advantage of the $7,500 tax incentive.

 

[cgoats21]

Sure you would of

Ugh now I’ll buy it today out of spite and to prove you wrong. You’re welcome

 

[MXSD]

New video showing early lease buyout price with screenshots from buyer who did zero down lease...

 

[kpanda17]

Nice work by Dennis on YT, he provided proof that the immediate buyout works by capturing the $7500. If you lease with immediate buyout and then finance, you will save $7K vs financing after purchase. Lease+Finance is $7K Cheaper than Financing. Financing has no access to the $7500.

 

[sirozha]

I don’t believe this is common. Someone in this forum would have reported a success by now. My local delivery center told me it’s not possible to do an early buyout.

 

[kpanda17]

I don’t believe this is common. Someone in this forum would have reported a success by now. My local delivery center told me it’s not possible to do an early buyout.

I hear ya, I saw the evidence and looked very legit but yes a YTr could have used it just for clicks. Hopefully one of us honest folks will show additional proof.

 

[Jedi2155]

I think I will attempt this as soon as I return from my travel next week. I tried emailing a tesla advisor but they haven't given me clear indication that this is possible.

 

[MXSD]

I think I will attempt this as soon as I return from my travel next week. I tried emailing a tesla advisor but they haven't given me clear indication that this is possible.

Awesome! Please update us if they get back to you thanks!

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