[RoyRomeo]

Saw this on Reddit today:

$7,500 on leases are back!

Hey y'all! As of this morning, Volkswagen Credit is once again passing along $7,500 to lease customers as a discount at the time of signing. Not only does this apply to 2023 model leases, but also for 2021 and 2022 models if dealers still have them in stock.
This is such great news and don't forget that you can do a lease, receive the discount, and buy out the lease very shortly afterwards, which is the best way to guarantee that you get the credit and opens the door to the 2022 models again! Feel free to DM me if you have any questions on the specifics =]

Posted by
u/vwgay

 

[Mrau]

Wow. Take that Tesla !!!

 

[His_Stigness]

Saw this on Reddit today:

$7,500 on leases are back!

Hey y'all! As of this morning, Volkswagen Credit is once again passing along $7,500 to lease customers as a discount at the time of signing. Not only does this apply to 2023 model leases, but also for 2021 and 2022 models if dealers still have them in stock.
This is such great news and don't forget that you can do a lease, receive the discount, and buy out the lease very shortly afterwards, which is the best way to guarantee that you get the credit and opens the door to the 2022 models again! Feel free to DM me if you have any questions on the specifics =]

Posted by
u/vwgay

If they're also doing this again for 21s and 22s this must be VWs way of dealing with losing the tax credit on those cars, and them suddenly not being competitive in the market with the Model Ys discount.

 

[Mrau]

This may be the loop hole that still allows non-American made EV eligible for tax credit if owner is a business/commercial.

Still need some more info to see if this is true or just a Friday 13th bad joke.

 

[CrzJms]

This may be the loop hole that still allows non-American made EV eligible for tax credit if owner is a business/commercial.

Still need some more info to see if this is true or just a Friday 13th bad joke.

This is correct - Going to lease two more 2022s now the Capital Cost Reduction is back - Nothing to file -
This just means reduced margins for VW just like TESLA

 

[Mrau]

Just talked to VW about this - so here is how it works - you must sign a lease agreement and you can not buy back before you do at least 12 monthly payments. 2022 and 2023 models are included in this.

@shap posted the above from another thread. Sounds like best way to purchase a new 2022 ID4 is a lease if you want $7500 credit.

 

[Spin]

It looks like you have to keep the lease 12 months before buying it out

 

[Mrau]

It looks like you have to keep the lease 12 months before buying it out

Looks that way. But still may be well worth it to get $7500 off the price. Hopefully someone with lease experience can do the math.

The 2022 models will probably sell out soon. Can't believe there are too many more coming from Germany.

 

[Detect]

Wow. Take that Tesla !!!

This just means reduced margins for VW just like TESLA

VW didn't discount their cars a penny? How would it affect their margins? It's just federal tax credits being passed onto the consumers.

 

[His_Stigness]

VW didn't discount their cars a penny? How would it affect their margins? It's just federal tax credits being passed onto the consumers.

The 21s and 22s don't qualify as they're made in Germany.

 

[Mrau]

The 21s and 22s don't qualify as they're made in Germany.

Different rule for lease since the owner is a corporation/business. Appears it was loophole in new IRA law.

Attached is Forbes article that explains it all.

 

[RyanC]

The 21s and 22s don't qualify as they're made in Germany.

It looks like they do now. There was a very recent IRS guidance that looks to me like a giant loophole to the US only rule. No Tax Credit For An EV? Try Leasing.
Hyundai for example changed their EV lease percentage expectation from 5% to 30%.

Edit: Jinx!

 

[CrzJms]

VW didn't discount their cars a penny? How would it affect their margins? It's just federal tax credits being passed onto the consumers.

This Capital Cost Reduction certainly IS a VW discount for 2022

This CCR has nothing to do a qualified US Federal Credit. CCR is for leasing customers only; Perhaps VW of America suspects rules will change and go in their favor but on the face of it, without rule changes, VW is paying for this capital cost reduction themselves. .

 

[Detect]

This Capital Cost Reduction certainly IS a VW discount for 2022

This CCR has nothing to do a qualified US Federal Credit. CCR is for leasing customers only; Perhaps VW of America suspects rules will change and go in their favor but on the face of it, without rule changes, VW is paying for this capital cost reduction themselves. .

VW Credit/the leasing company is claiming the federal tax credit for each EV sold to it as a leasing loophole and passing along that credit as a discount to consumers, so again, VW is not reducing the price of the ID4 and eating the discount. Taxpayers are paying for the "discount". Totally different than what Tesla did with their price cuts.

 

[His_Stigness]

Different rule for lease since the owner is a corporation/business. Appears it was loophole in new IRA law.

Attached is Forbes article that explains it all.

Oh SHEEEEEEEEEEET that's insane, and great, because I really wanted to get a Q4 or something next time as I prefer German built vehicles.

Thanks for the article.

 

[His_Stigness]

VW Credit/the leasing company is claiming the federal tax credit for each EV sold to it as a leasing loophole and passing along that credit as a discount to consumers, so again, VW is not reducing the price of the ID4 and eating the discount. Taxpayers are paying for the "discount". Totally different than what Tesla did with their price cuts.

At least Tesla has never benefited from taxpayer money...

 

[mcden]

The 21s and 22s don't qualify as they're made in Germany.

If it was before Aug 17th, 2022 yes they do.

Alternative Fuels Data Center: Electric Vehicles with Final Assembly in North America

Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2022 and Before | Internal Revenue Service

List of vehicles that are eligible for a 30D clean vehicle tax credit and the amount of the qualifying credit, if purchased between 2010 and 2022.

www.irs.gov

 

[dkuryente]

Saw this on Reddit today:

$7,500 on leases are back!

Hey y'all! As of this morning, Volkswagen Credit is once again passing along $7,500 to lease customers as a discount at the time of signing. Not only does this apply to 2023 model leases, but also for 2021 and 2022 models if dealers still have them in stock.
This is such great news and don't forget that you can do a lease, receive the discount, and buy out the lease very shortly afterwards, which is the best way to guarantee that you get the credit and opens the door to the 2022 models again! Feel free to DM me if you have any questions on the specifics =]

Posted by
u/vwgay

What does that mean "buy out of the lease very shortly afterwards"? How does this work?

I do see a 22 PRO S for 44,405 before the 7.5k lease credit + 500 for first responders. Does anyone one what the lease payments money factor is?

 

[dkuryente]

It looks like you have to keep the lease 12 months before buying it out

How much does it normally cost to buy out of your lease? Sorry lease newbie here.

 

[agzand]

How much does it normally cost to buy out of your lease? Sorry lease newbie here.

Depends on contract. With my contract VW will reimburse the interest if you buy out the car. With many leases that is not the case and you have to pay all your remaining payments upfront to buy the car.