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

[cgoats21]

I think it's a legal issue since they are the manufacturer. Dealers use this as a sales tactic to move ev's but since Tesla is the manufacturer it might cause some problems encouraging this

Still waiting for someone, anyone on CTOC to confirm they have actually completed a lease buyout so far knowone here yet...

Read section 30b and 32. This is where it clearly states it. It defines the adjusted lease balance and the purchase option in 32. It is very clear.

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[MXSD]

Read section 30b and 32. This is where it clearly states it. It defines the adjusted lease balance and the purchase option in 32. It is very clear.

It is extremely blurry hard to read but section 32 looks like the relevant part but keeps referring to section 14 which I can't see. I read this is a chase contract also. Have you actually completed a lease buyout? Not saying I trust their info but 3 different delivery centers have told me and said they confirmed with Tesla finance dept that they will not allow this maybe that's just for Tesla trust leases or finance Dept just doesn't know what they're talking about.

I've seen a lot of contracts and screenshots in the app for buyouts but knowone that has actually completed a early lease buyout yet.

 

[cgoats21]

It says pay the price in section 14 if you purchase at the end of the lease but if you purchase before you pay the adjusted lease balance.

 

[Jedi2155]

It is extremely blurry hard to read but section 32 looks like the relevant part but keeps referring to section 14 which I can't see. I read this is a chase contract also. Have you actually completed a lease buyout? Not saying I trust their info but 3 different delivery centers have told me and said they confirmed with Tesla finance dept that they will not allow this maybe that's just for Tesla trust leases or finance Dept just doesn't know what they're talking about.

I've seen a lot of contracts and screenshots in the app for buyouts but knowone that has actually completed a early lease buyout yet.

I've seen people with Model 3's get the buyout option (post Nov. 27th purchases) via Tesla Trust, but I've also heard people with Santander bank not get anything. Chase is the only one with the lease buyout language in the contract AFAIK.

I am going to try to do this tomorrow or Friday as well and try to get a Chase Lease

 

[MXSD]

I've seen people with Model 3's get the buyout option (post Nov. 27th purchases) via Tesla Trust, but I've also heard people with Santander bank not get anything. Chase is the only one with the lease buyout language in the contract AFAIK.

I am going to try to do this tomorrow or Friday as well and try to get a Chase Lease

Yah I'm pretty sure it's just normal employee incompetence and that this can be done would just be nice to get confirmation from someone that has actually completed an early lease buyout. Thanks keep me posted!

 

[mongo]

Read section 30b and 32. This is where it clearly states it. It defines the adjusted lease balance and the purchase option in 32. It is very clear.

32. "Adjusted lease balance plus purchase option fee.... and any other amounts you owe under this lease"
For whatever that adds up to...

 

[sirozha]

I've seen people with Model 3's get the buyout option (post Nov. 27th purchases) via Tesla Trust, but I've also heard people with Santander bank not get anything. Chase is the only one with the lease buyout language in the contract AFAIK.

I am going to try to do this tomorrow or Friday as well and try to get a Chase Lease

How do you choose the bank through which the lease is done? I’ve never leased a vehicle. I thought the manufacturer chooses the lessor.

 

[sirozha]

32. "Adjusted lease balance plus purchase option fee.... and any other amounts you owe under this lease"
For whatever that adds up to...

Don’t you owe interest for 36 months under the lease?

 

[MynameisKhan]

Any info on this early lease buyout and the potential additional fees for early purchase would be greatly appreciated - especially if someone has gone through the process!

 

[Jwadoc]

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)

I just leased my second Wrangler. Got the 4Xe. Had to confirm the 7500$ with the dealer before leasing. The dealer has to pass on the savings to meet. They can choose not to pass it on. I make over 300,000k. They told me I can buy the lease out after one year. I never knew this as well. I believe they told me as a repeat customer. Tesla would have to confirm they are passing on the 7500$ with the lease. As for tesla offering a buy out after 1 year. I would need to hear it from them. I can say Stellantis gave me that option.

 

[sirozha]

I just leased my second Wrangler. Got the 4Xe. Had to confirm the 7500$ with the dealer before leasing. The dealer has to pass on the savings to meet. They can choose not to pass it on. I make over 300,000k. They told me I can buy the lease out after one year. I never knew this as well. I believe they told me as a repeat customer. Tesla would have to confirm they are passing on the 7500$ with the lease. As for tesla offering a buy out after 1 year. I would need to hear it from them. I can say Stellantis gave me that option.

When you lease, how much you make is immaterial. However, when you buy, the limit is not in how much you make. The $300,000 limit is your AGI, not your gross income. AGI is the amount you pay tax on, which is after you’ve taken every tax deduction you are entitled to.

So far, there hasn’t been a single report on here about someone being able to buy out a lease after the first 30 days without having to pay interest for all 36 months. The real question here is not if you can buy out the lease early (because you definitely can). The question is if you would owe interest for all 36 months when you buy out the lease early. Not having to pay the interest on the remaining 35 months when buying out the lease after the first 30 days is what would make this a good deal, as it would save about $6,000 (give or take). If you still owe interest for 36 months, then it’s cheaper just to buy the Cybertruck outright and not get the $7,500 discount.

One reason we haven’t heard from anyone being able to buy out the lease early and not owe the interest for 36 months is that the Cybertruck became available for leasing sometime at the end of November, 2024. So, we are unlikely to hear from someone attempting to do so until after New Year’s, which means we won’t be able to use the $2,000 incentive that’s still available today.

I’m reminded of the situation at the end of 2022, when Tesla was running great end-of-year incentives, which looked impossible to resist for many. This was followed by a dramatic lowering of prices in January 2023, when the price of the Model 3 was lowered by $13,000 overnight. (if memory serves), which made it qualifiable for another $7,500 in Federal Tax Credit. So, for many, it was a drop in price by $20,500 on the Model 3 overnight. This decimated the savings that people took in incentives on Teslas delivered at the end of 2022.

I’m wondering if we are going to see a lowering of Cybertruck prices in early 2025. I wouldn’t be overly surprised if Musk lowered the price of the Cybertruck by $7,500 in January 2025. This may be the reason he is lobbying for the cancellation of the federal tax credit on EVs. He is likely smelling blood in the water. If he can lower the price of the Cybertruck by $7,500 while Rivian and Ford lose the $7,500 Federal Tax Credit and lease credit, Rivian is toast, and Ford’s Lightning sales will be severely impacted.

 

[Jedi2155]

When you lease, how much you make is immaterial. However, when you buy, the limit is not in how much you make. The $300,000 limit is your AGI, not your gross income. AGI is the amount you pay tax on, which is after you’ve taken every tax deduction you are entitled to.

So far, there hasn’t been a single report on here about someone being able to buy out a lease after the first 30 days without having to pay interest for all 36 months. The real question here is not if you can buy out the lease early (because you definitely can). The question is if you would owe interest for all 36 months when you buy out the lease early. Not having to pay the interest on the remaining 35 months when buying out the lease after the first 30 days is what would make this a good deal, as it would save about $6,000 (give or take). If you still owe interest for 36 months, then it’s cheaper just to buy the Cybertruck outright and not get the $7,500 discount.

One reason we haven’t heard from anyone being able to buy out the lease early and not owe the interest for 36 months is that the Cybertruck became available for leasing sometime at the end of November, 2024. So, we are unlikely to hear from someone attempting to do so until after New Year’s, which means we won’t be able to use the $2,000 incentive that’s still available today.

There has been reports of lease buyouts on Model 3's being offered without the interest which is what makes it a deal. From what I the Chase lease contract allows buy out at any point. Another important note is that I believe Chase becomes the main lender if you have excellent credit, but if you have less than excellent then your lender options may be with other companies whose lease buyout contracts are different.


From this post:
https://teslamotorsclub.com/tmc/thr...-posted-11-27-2024.337482/page-3#post-8548848

 

[sirozha]

There has been reports of lease buyouts on Model 3's being offered without the interest which is what makes it a deal. From what I the Chase lease contract allows buy out at any point. Another important note is that I believe Chase becomes the main lender if you have excellent credit, but if you have less than excellent then your lender options may be with other companies whose lease buyout contracts are different.


From this post:
https://teslamotorsclub.com/tmc/thr...-posted-11-27-2024.337482/page-3#post-8548848

Because I've never leased a vehicle, I need to have proof that the Cybertruck can be bought out after 30 days of leasing it without owning interest on the remaining 35 months under the lease. Otherwise, I would end up paying $250 to order a truck that I would then refuse to lease and throw away $250 - if it turns out that this early buyout without interest penalty is not possible. Alternatively, I would end up leasing a vehicle that I want to buy instead.

In other words, I'm going to wait and see how this plays out. Additionally, I have a hunch that Musk may lower the Cybertruck price by $7,500 come January 2025. Given that the Cybertruck has exhausted its wait list, I think it's very likely the price may be lowered in early 2025 (if there is a cushion in the profit margin), similarly to the way Tesla lowered the price of all of its vehicles in January 2023. If I could buy a dual-motor Cybertruck for $72,500 (and then pay $6,000 to wrap it), I would pay about $80,000 for a wrapped Cybertruck, including delivery and before taxes. This sounds like a decent enough deal. Paying close to $90,000 with taxes for a wrapped dual-motor Cybertruck is a little too much for my taste. I never finance or lease; I pay cash for my vehicles, so I actually look at the bottom line rather than the monthly payments.

 

[Oceanwolf]

I ordered CT on 12/18 and my lease paperwork was sent to Chase. The order form shows 2K for loyalty, 7.5K for lease incentive and I wanted to transfer M3 FSD. I was assigned a VIN right away. They are all in the app. Now I have been told my CT is going to arrive 1/6. I had my doubts about the early purchase (Chase told me, it is possible) and I don’t think the bank would be able to charge interest for something I don’t owe to them anymore, now the question is would Tesla honor their agreement or say all incentives are gone. We’ll see….

 

[Jedi2155]

I ordered CT on 12/18 and my lease paperwork was sent to Chase. The order form shows 2K for loyalty, 7.5K for lease incentive and I wanted to transfer M3 FSD. I was assigned a VIN right away. They are all in the app. Now I have been told my CT is going to arrive 1/6. I had my doubts about the early purchase (Chase told me, it is possible) and I don’t think the bank would be able to charge interest for something I don’t owe to them anymore, now the question is would Tesla honor their agreement or say all incentives are gone. We’ll see….

You'll likely get your price but I'm betting you will lose 3 months free supercharging + FSD


I ordered my leased CT last night to cancel my original day 1 reseveration CT I ordered on 12/15/23 (required a district manager to approve the deposit transfer) and I'm scheduled for delivery Wednesday 12/31.

I plan to buy it out immediately with cash. I will lease or finance if it makes sense (for example still financing my solar + PW2 @ 2.99% for 10 years because it beats inflation). I put some of that extra money into $TSLA which is allowing me to buy the CT now.

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