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

[mongo]

To be completely transparent, I recieved my lease offer as well and read nothing that clearly implies that you can ‘buy-out early’…

I have never heard of this option in my many years of Leasing vehicles previously.. I’m not saying it’s not possible, I just never heard of such… (if it is a hidden loophole I could understand why the leaser would not want you to discover it)

Yeah, the posted doc says the opposite...

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[mongo]

If he is somehow right it is definitely a deal, but a dangerous game to play with legal documents and the tax man

In this case, it would be Tesla or Chase (the lessor) that would need to deal with the 45W credit being denied due to being recharacterized as a resale instead of a lease. The consumer only deals with the lease contract.

 

[CarMan ElecTruck]

Yeah, the posted doc says the opposite...

I’m starting to question the legitimacy of this document.. my lease clearly states there is an option to buy at the end.. and a the residual value to do so..

 

[sirozha]

Question is, Can you buy it out early or do you have to wait until the end of the lease to buy it out?

For example, can I buy it out after the first month of the lease?

I asked this question of the local Tesla delivery people at the Tesla Service Center, and they didn't know if I had to wait until the end of the lease period to buy it out or if I could do it after the first month.

Thank you.

 

[cgoats21]

It's the additional $7,500 lease credit that goes into the inital payment that is the benefit.

Correct, this is a nice savings if the early buyout is a guaranteed option and only includes the fees that he says.

 

[mongo]

I’m starting to question the legitimacy of this document.. my lease clearly states there is an option to buy at the end.. and a the residual value to do so..

I'd say maybe relevance vs legitimacy, it could be a pre-buyout version.

 

[sirozha]

It's the additional $7,500 lease credit that goes into the inital payment that is the benefit.

I've never leased a vehicle, and never planned to, but I want to get the $7,500 credit. When I looked at the lease terms on the Tesla site, there was a $7,500 downpayment listed (curiously, the same amount as the $7,500 as the tax credit - coincidence???). I asked the Tesla delivery people as to how the $7,500 credit was applied, but they couldn't answer my question.

So, could you please answer my questions?
1. Why is "Amount to be paid in cash" showing as $14,250.00 (after the $7,500 credit)? Is this by choice to pay more upfront to reduce the monthly payments and thus reduce the interest?
2. The biggest portion of the $21,750.00 is "Capitalized cost reduction". What's "Capitalized cost reduction"?

Sorry for these questions, but I've always been proud of not leasing vehicles, so I've never got exposed to the lease terms and rules.

Thank you.

 

[mongo]

I've never leased a vehicle, and never planned to, but I want to get the $7,500 credit.
1. When I looked at the lease terms, there was a $7,500 downpayment. Why is the "Amount to be paid in cash" showing is $14,250.00 (after the $7,500 credit)? The biggest portion of this $21,750.00 is "Capitalized cost reduction".
2. What's "Capitalized cost reduction" (as part of the $21,750.00)?

The 14,250 is down payment the lessee in paying (6,750 extra on top of the base $7,500 down). The credit is the 7,500 line. Those combine to the 21,750 payment at deliver.
Minus fees and such, $18,959.85 pays down the vehicle principle which impacts the monthly payment by reducing the difference between the outstanding value and residual (end of lease value).

 

[sirozha]

The 14,250 is down payment the lessee in paying (6,750 extra on top of the base $7,500 down). The credit is the 7,500 line. Those combine to the 21,750 payment at deliver.
Minus fees and such, $18,959.85 pays down the vehicle principle which impacts the monthly payment by reducing the difference between the outstanding value and residual (end of lease value).

So, this would be a great deal to get the Cybertruck with the $7,500 discount (and currently actually $9,500 because Tesla is giving an extra $2,000 off before the end of the year). Even with some junk fees for the buyout, it's still over $8,500 in discounts. The only real question remaining is if we can do an early buyout without any penalties.

 

[CarMan ElecTruck]

It's the additional $7,500 lease credit that goes into the inital payment that is the benefit.

so you are saying that this person only really has to pay 14,250 but 21,750 will be applied because of the credit..?

 

[sirozha]

so you are saying that this person only really has to pay 14,250 but 21,750 will be applied because of the credit..?

That's what it means. The standard deal on the Tesla web site shows $7,500 down, so I guess without the credit applied, the standard downpayment would be $15,000. Unfortunately, the Tesla delivery people do not know any of this. It's like someone saw a guy walking by the Tesla delivery center yesterday, went outside, and offered him a job on the spot. These people don't know anything.

 

[CarMan ElecTruck]

That's what it means. The standard deal on the Tesla web site shows $7,500 down, so I guess without the credit applied, the standard downpayment would be $15,000. Unfortunately, the Tesla delivery people do not know any of this. It's like someone saw a guy walking by the Tesla delivery center yesterday, went outside, and offered him a job on the spot. These people don't know anything.

this logic makes sense in my mind.. and falls in line with what I see in my agreement, now that Tesla has update my account…

so the only remaining thing to consider is total payments overall vs monthly for the two strategies.. which would be more appealing for the individual?...

The buy-out early mumbo-jumbo is still just mumbo-jumbo at this point till I see solid evidence and verbiage .

 

[mongo]

This is the 24 month Lease Option from the Tesla Order page, 36 month is about a $110/mo less :

$1,049 /mo est.
Get Prequalified
Down Payment

Term
24 Months

• 
  

Annual Miles
10,000 miles

• 
  
• 
  

Include Est. Gas Savings of $92 /mo
Customize
Include Est. Taxes and Fees
These are estimated monthly payments if you participate in Tesla leasing. These estimates are subject to change and contingent on lease approval, available interest rates, and other factors. The calculator does not include taxes or fees, however you can see estimated values when switching on the "Include Est. Taxes and Fees" option. Taxes and fees listed are estimates only, subject to change, and may not be accurate to you, depending on factors like your registration location. Your applicable taxes and fees will be confirmed for you closer to time of delivery. Early termination fees apply. Fees may be charged for excessive wear plus any overage of mileage at a rate of $0.25 per mile. Late payments will incur a 5% fee. Lease does not include maintenance or insurance. Security deposit not required. Complete terms will be included in Motor Vehicle Lease Agreement.
*Due at signing amount includes your selected downpayment ($7,500), first month's payment ($1,049), and acquisition fee ($695).
**Lease vehicles are subject to a $395 disposition fee at return. Option to purchase for $58,209 plus applicable taxes and fees, and purchase fee of up to $350 subject to the terms in lease agreement. Purchase option may not be available in IA, LA or where prohibited by state law.
Tesla leasing is currently available in AL, AK, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NJ, NM, NV, NY, OH, OR, PA, RI, SD, TN, TX, UT, VA, VT, WA, WV, WY.

So, it says nothing about early Lease payoff. If that were possible and the Option to Purchase was the $58,209 it would be a good deal even with the upfront money. Interesting ...

Yeah, depends on what the "early termination fees" are in the event of an early buyout.

 

[CarMan ElecTruck]

There is verbiage in the agreement that you can end the lease early but there could be a fee up to many thousand dollars.. the earlier you end it the greater this charge will likely be yadda yadda…

no mention of ‘early buy-out’ in particular.

 

[cgoats21]

Until someone posts them actually doing it with cybertruck it’s not worth it to try it unless you are ok going through with the entire lease. If this can be confirmed, I’d buy it today.

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