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

[voxel]

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.

Advisors are useless. They didn't even know Tesla changed the rules on lease buyouts a few days after. And via text messages they said I would have to pay the entire balance of the lease if I wanted to buy it out (lol). Just read the contract.

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[cgoats21]

Advisors are useless. They didn't even know Tesla changed the rules on lease buyouts a few days after. And via text messages they said I would have to pay the entire balance of the lease if I wanted to buy it out (lol). Just read the contract.

It’s so new they are not well versed on any of that especially with the end of the year push. Their lease agreements have been updated and you can buy out at any time AS IS and the “rent” charges will be deducted from what you owe.

 

[ehua329]

That's not 7500 tax credit. In this case, it is the 45W commercial clean vehicle credit. Tesla is both the manufacturer and the lessor. As a lessor Tesla gets 7500 for each vehicle they buy (from itself), then lease to customer, and Telsa just PASS ON that 7500 from IRS to customer as "Incentive". If you can buy out earlier is just a matter of the contract language.

 

[kpanda17]

Update, the current Tesla early lease termination doc only states two scenarios:
1. balance left on the lease, less than three payments
2. three or more payments on the lease
immediate buyout is number 2 and no block of buyout in month 1 all the way to 34
chatting with an advisor this am that wont acknowledge the math, keeps stating to me I will be responsible for the interest on the 34 months of lease payments

Text chat with Tesla was terrible, them stating I would be liable for the interest on all unpaid lease payments. Crazy talk, how could I own interest, that's like an early payment penalty that the term term is allowing. Maybe the only penalty is te $350 admin fee.

" When you early terminate a vehicle lease with a buyout option, you are typically not liable for all the interest on unpaid payments; instead, you would be responsible for the remaining lease payments, the buyout price of the vehicle, and any early termination fees specified in your contract, but not necessarily the accrued interest on those unpaid payments."

 

[cgoats21]

Update, the current Tesla early lease termination doc only states two scenarios:
1. balance left on the lease, less than three payments
2. three or more payments on the lease
immediate buyout is number 2 and no block of buyout in month 1 all the way to 34
chatting with an advisor this am that wont acknowledge the math, keeps stating to me I will be responsible for the interest on the 34 months of lease payments

Text chat with Tesla was terrible, them stating I would be liable for the interest on all unpaid lease payments. Crazy talk, how could I own interest, that's like an early payment penalty that the term term is allowing. Maybe the only penalty is te $350 admin fee.

" When you early terminate a vehicle lease with a buyout option, you are typically not liable for all the interest on unpaid payments; instead, you would be responsible for the remaining lease payments, the buyout price of the vehicle, and any early termination fees specified in your contract, but not necessarily the accrued interest on those unpaid payments."

I have the lease agreement and there is a clause that states you can buy out the lease at any time as is. Section 32 buy out option.

 

[kpanda17]

I have the lease agreement and there is a clause that states you can buy out the lease at any time as is. Section 32 buy out option.

Tesla is not denying that, they are saying I will owe the interest on the unmade 35 payments

 

[cgoats21]

Tesla is not denying that, they are saying I will owe the interest on the unmade 35 payments

They are either not well versed on it yet or are not legally able to promote buying out the lease. If you look at section 32 and then the terms defined, it will clearly state what you would legally pay for it

section 32 states the adjusted lease balance plus purchase option fee is what is due if you buy out lease before it’s up.

above that, adjusted lease balance is defined as the adjusted cap cost minus the sum of all depreciation that has been accrued up until the day you buy it. Adjusted cap cost is listed on the contract based off what you put down on the lease. There’s no mention of any other fees than that.

 

[cgoats21]

The only thing I am unclear on is if you are double taxed on the situation. They put the sales tax/use tax into the adjusted cap cost and wonder if you then get taxed again on the buyout.

 

[kpanda17]

The only thing I am unclear on is if you are double taxed on the situation. They put the sales tax/use tax into the adjusted cap cost and wonder if you then get taxed again on the buyout.

its should be $0 down and pay tax on the payments, then at buyout its the sales tax on the buyout less what you paid on the lease, so not double tax

 

[cgoats21]

its should be $0 down and pay tax on the payments, then at buyout its the sales tax on the buyout less what you paid on the lease, so not double tax

That’s what I thought but a sales tax/use tax was already added to the gross capitalized cost so if there is then additional sales tax on the purchase, it’s a double tax.

 

[JerseyMike]

The only thing I am unclear on is if you are double taxed on the situation. They put the sales tax/use tax into the adjusted cap cost and wonder if you then get taxed again on the buyout.

that was my concern too, is the initial tax baked into the monthly payments (where you would not get taxed twice) or is it included in the downpayment......to play it safe you almost would want to do $0 downpayment and then pay whatever tax is required on the buyout amount.

 

[cgoats21]

Each state could be different, it’s not factored into the down payment per se, but it is factored into the adjusted capitalized cost right out of the gate no matter how much you put down. Mine is $3250 and if you are buying out the adjusted lease balance, that 3250 is already baked into it.

 

[MXSD]

So still not a soul from the CTOC the biggest Cybertruck forum there is that has actually bought out a lease yet!? This person claims was able to...

 

[Jedi2155]

So still not a soul from the CTOC the biggest Cybertruck forum there is that has actually bought out a lease yet!? This person claims was able to...

Who is "this person"?

 

[voxel]

its should be $0 down and pay tax on the payments, then at buyout its the sales tax on the buyout less what you paid on the lease, so not double tax

Except in 3 states which tax upfront on the MSRP of the vehicle at lease signing. 2 of the states provide backend rebates/credits if you purchase the vehicle. TX is the double sales tax state.

Chase generated a buyout quote with my zipcode but I'm in no rush to purchase it immediately.

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