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

[cgoats21]

This is a loophole because it was designed for commercial purchases. What happened is that leasing companies buy these vehicles for themselves and lease them to you. It was never intended by the law, and, in fact, Joe Manchin was livid when he found out that this loophole became apparent. And without Joe Manchin, the IRA legislation would not have passed.

So you are saying that until the law is changed, you can early buyout and get the credit?

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[mongo]

This is a loophole because it was designed for commercial purchases. What happened is that leasing companies buy these vehicles for themselves and lease them to you. It was never intended by the law, and, in fact, Joe Manchin was livid when he found out that this loophole became apparent. And without Joe Manchin, the IRA legislation would not have passed.

If Joe didn't understand the bill, that's his problem.

It clearly states "for use or lease by the taxpayer". Thus leasing is not use by the taxpayer meaning the taxpayer is leasing it to someone else.

 

[mongo]

So you are saying that until the law is changed, you can early buyout and get the credit?

You, the consumer, never get the commercial credit (directly). Tesla as the lessor (lease writer/provider) gets the credit. Unless the IRS says "nope, that was resale, not a lease", in which case Tesla doesn't get the credit, but you as the 3rd party consumer still get whatever terms the lease called out.

 

[JerseyMike]

So you are saying that until the law is changed, you can early buyout and get the credit?

Pretty sure that is the case

I agree that the tax subsidies (and especially loopholes for leasing) are not a good thing for the country…..but for the buyer not bad at all and might as well take advantage if you can

 

[cgoats21]

Pretty sure that is the case

I agree that the tax subsidies (and especially loopholes for leasing) are not a good thing for the country…..but for the buyer not bad at all and might as well take advantage if you can

I guess the other question is does a lender still consider it a new purchase when you do the buyout?

 

[Flex3269]

I called CHASE yesterday and asked about using their financing for a cybertruck lease buyout and they told me that I couldn’t do it because Tesla isn’t a “dealership”. That’s great that you can actually get the tax credit and do the lease buyout but what you aren’t showing is people actually getting the financing for the buyout, without that you are screwed unless you have the cash to pay it off. So please everyone make sure you can actually secure financing for the buyout before you sign the lease. I also asked what they consider a “new” vehicle and they said if it’s got under 500 miles it’s considered new.

 

[Jack27]

I called the tooth fairy today who then called Santa Claus and confirmed this to me true with the Easter Bunny

 

[sirozha]

I called CHASE yesterday and asked about using their financing for a cybertruck lease buyout and they told me that I couldn’t do it because Tesla isn’t a “dealership”. That’s great that you can actually get the tax credit and do the lease buyout but what you aren’t showing is people actually getting the financing for the buyout, without that you are screwed unless you have the cash to pay it off. So please everyone make sure you can actually secure financing for the buyout before you sign the lease. I also asked what they consider a “new” vehicle and they said if it’s got under 500 miles it’s considered new.

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

 

[mongo]

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

They are referring to doing it soon after purchase. Not 3 years of lease followed by 5 years of loan. Though people do do that for the lower payments.

 

[cgoats21]

I still find it hard to believe we haven’t heard from anyone who has actually completed the early buyout on cyber truck. I’ve send the quote requests but haven’t heard anyone actually completing it.

 

[MXSD]

I still find it hard to believe we haven’t heard from anyone who has actually completed the early buyout on cyber truck. I’ve send the quote requests but haven’t heard anyone actually completing it.

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

 

[mongo]

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

So, the 23 thousand dollar question is:
Are the remaining lease payments "any other amounts you owe under this Lease"?
At least item (e) must be must be because there is no way they are going to let someone buy it for $59,988.75 when the remaining capitalized cost is $65,235.

 

[MXSD]

So, the 23 thousand dollar question is:
Are the remaining lease payments "any other amounts you owe under this Lease"?
At least item (e) must be must be because there is no way they are going to let someone buy it for $59,988.75 when the remaining capitalized cost is $65,235.

I would assume line c)adjusted capitalized cost would be the buyout price that already includes your down payment and the 7,500 credit, of course taxes would be added. Lexus for example allows this for its EV but I believe you have to hold the lease for 30 days if I remember correctly before you can buyout.

 

[sirozha]

I still find it hard to believe we haven’t heard from anyone who has actually completed the early buyout on cyber truck. I’ve send the quote requests but haven’t heard anyone actually completing it.

I would do this if this were legit. I would hold the lease for 30 days and then buy out. The issue here is that no one knows if this is legit. My local delivery center is staffed with absolute morons, so asking them about this again and again is useless.

 

[netcatz99]

Someone posted on Facebook with details on the lease buy out through Chase: .

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