[corner26]

So, due to my impatience and the way for is doing Leasing I decided to call a local dealer regarding the volvo xc40 recharge.

Simple question: Do they apply the $7500 to the lease as a down payment or remove it from the MSRP whichever way they do it. Was told, I would have to claim that..But they would be the owners of it still(that doesn't make any sense).

Has anyone done any research on the XC40 recharge regarding leasing and the $7500? Based on my math, I would take the XC40 today and cancel my mach e order just for the lease if that $7500 applied unlike the mach e. But that call today was a little upsetting, are most companies not applying the $7500 to the EV lease?

 

[corner26]

Called another local dealer - was told the same thing. Even though Volvo would be the owner of the Lease, I'd claim the tax credit (not true) but then after a bit of discussion it got corrected to they are offering $3500 incentive and not the $7500 fed tax credit to a lease.

I remember when I was looking at the Niro, the $7500 was attached to the lease but due to the lack of "technology" the Niro had at the time it really didn't make me want to jump on it.

Anyone experience the same or different?

 

[MachDrive]

Called another local dealer - was told the same thing. Even though Volvo would be the owner of the Lease, I'd claim the tax credit (not true) but then after a bit of discussion it got corrected to they are offering $3500 incentive and not the $7500 fed tax credit to a lease.

I remember when I was looking at the Niro, the $7500 was attached to the lease but due to the lack of "technology" the Niro had at the time it really didn't make me want to jump on it.

Anyone experience the same or different?

Unfortunately, the leasing companies are under no obligation to pass the tax credit along to the customer. With all the new ground-up EVs coming to market, we cannot assume the past-practice where incentives equivalent to the tax credit will continue. Although, there may be some form of incentive if sales numbers need to increase.

The leasing companies are also assuming the depreciation risk from you, which could save you thousands over traditional financing when combined with the lower payments.

Something else to consider, any incentive offered may be more beneficial to a purchaser in a lower tax bracket, where their tax burden is less than $7,500.

Along those same lines, from an article in the US News and World Report, for those financing—who do not have a tax burden of $7,500 —they may wish to consult their tax advisor about making a withdrawal from an IRA or investment (where prudent) that will incur a tax liability, so they can get the full value of the Federal Tax Credit. Not advice, just something interesting I came across.

 

[JTK44]

Jaguar on the IPace puts the $7500 into the lease as a cap cost reduction

I am checking to see if BMW does the same with the X5 hybrid

 

[Adam Hofmann]

So, due to my impatience and the way for is doing Leasing I decided to call a local dealer regarding the volvo xc40 recharge.

Simple question: Do they apply the $7500 to the lease as a down payment or remove it from the MSRP whichever way they do it. Was told, I would have to claim that..But they would be the owners of it still(that doesn't make any sense).

Has anyone done any research on the XC40 recharge regarding leasing and the $7500? Based on my math, I would take the XC40 today and cancel my mach e order just for the lease if that $7500 applied unlike the mach e. But that call today was a little upsetting, are most companies not applying the $7500 to the EV lease?

Speak to your accountant. They may say that you are better off purchasing the car and using a traditional loan instead of lease. This way you can obtain the $7500 tax deduction. Buying will also be better as the lease residuals are lower then real market value due to Conservative estimates. I really don't think Leasing on the MME makes sense right now.

 

[JTK44]

Speak to your accountant. They may say that you are better off purchasing the car and using a traditional loan instead of lease. This way you can obtain the $7500 tax deduction. Buying will also be better as the lease residuals are lower then real market value due to Conservative estimates. I really don't think Leasing on the MME makes sense right now.

At this point in time no one knows what the value of the MME will be in 36 or 48 months.

One thing I can guarantee you is that it will not be anywhere near the residual of 58%.

The problem with the lease on the MME is not the residual: the problem is the extraordinarily high interest rate of over 5% and the fact that no part of the FTC of $7,500 is in the lease.

In fact the monthly payment on the Option Plan, when the FTC is used as a down payment, is less than the monthly payment with a lease.

Never ever should a lease be more expensive than financing a car.

This would be a joke if Ford wasn’t serious!

Presently Ford is banking on the demand for the MME being so high that they do not have to offer a competitive lease

I think that will all change within six months.

 

[FISHEV]

I really don't think Leasing on the MME makes sense right now.

Since they don't offer it, no way to know.

A traditional lease makes the most sense on EV's right now as they are more expensive and will be obsolete fast with falling used car prices. That Ford won't offer a lease speaks to that issue. Options provides a guaranteed floor on the sale price plus buyer gets the $10k (in OR) credits. But the floor is pretty low so the monthly on options is high vs. a lease.

 

[JTK44]

Since they don't offer it, no way to know.

A traditional lease makes the most sense on EV's right now as they are more expensive and will be obsolete fast with falling used car prices. That Ford won't offer a lease speaks to that issue. Options provides a guaranteed floor on the sale price plus buyer gets the $10k (in OR) credits. But the floor is pretty low so the monthly on options is high vs. a lease.

Actually and the point is that Ford does offer a lease on the MME. I was quoted, with X plan pricing $956 a month for 36 months and only 7,500 miles per year!

This was substantially more than the monthly payment under the option plan.

As I am not interested in either buying or financing, only leasing to protect myself against depreciation, and really do not need a new car until the fall when my leases end, I told my dealer to just refund my deposit as I will not be taking my reserved FE.