[Imeaus]

Hey All,

Long time reader, first time poster. Hoping to get some clarification on the 7500 federal tax credit, especially with some here receiving their FEs.

I plan to lease my pro once it arrives and have been doing some research based on what people here have talked about. How does the federal tax credit work in this case with the lease? Is it taken off of the top? Trying to figure out how they would incorporate that. I searched the forum and there were a few posts from 5-6 months ago, but curious with those that went through the leasing process already.

Thank you! Hope to contribute more in the future!

 

[mmcbtx]

The lessor (VW) gets the $7500 credit and may choose to pass some or all of that through to you as part of the lease. It appears VW is passing it all through (verify as you're doing paperwork).

Other posters have been putting it in the appropriate "incentives" field on this calculator, where you could see its impact to you. It seems like it's essentially off the top, and has a big impact on my calculated payment.

 

[krusshall]

It is offered as a "rebate" or cap cost reduction or incentive to reduce the vehicle cap cost by $7500.

 

[Imeaus]

The lessor (VW) gets the $7500 credit and may choose to pass some or all of that through to you as part of the lease. It appears VW is passing it all through (verify as you're doing paperwork).

Other posters have been putting it in the appropriate "incentives" field on this calculator, where you could see its impact to you. It seems like it's essentially off the top, and has a big impact on my calculated payment.

Thank you! That is what I thought, but I was noticing a few people posting their numbers in the other threads. Was looking to follow along there but didn't know if the credit was applied or not (I do know the overall price was higher since it is the FEs that were being bought)

 

[krusshall]

Thank you! That is what I thought, but I was noticing a few people posting their numbers in the other threads. Was looking to follow along there but didn't know if the credit was applied or not (I do know the overall price was higher since it is the FEs that were being bought)

Not sure what you're seeing but if it's worksheets from dealerships then they probably rolled a bunch of the fees into the lease. There's an acquisition fee and I'm sure a dealer doc fee and sales tax, etc.

 

[Imeaus]

Not sure what you're seeing but if it's worksheets from dealerships then they probably rolled a bunch of the fees into the lease. There's an acquisition fee and I'm sure a dealer doc fee and sales tax, etc.

Yes you are correct. I have been following along in the dealer shenanigans thread and recently @rahi posted his lease sheet which was informative. I didn't notice the 7500 under the rebates & noncash credits section.

I guess overall was just abit confused since this is my first electric vehicle and how the credit worked. Thank you for the help!

 

[1440]

The FTC is applied as a cap cost reduction when you lease an ID4. So if the MSRP for your ID4 is $39,995, then the cost of the vehicle after the reduction is $32,495.
The lease is then calculated from there. This is one reason why I prefer to lease EVs at this point in time.
Not every auto manufacturer is doing this though. Ford for example, keeps the entire tax credit (when you lease a Mach-E), and they don't pass any of that incentive on to their customers.
When I leased my Volt in 2018, GM gave me roughly $6K of the $7,500 FTC as a cap cost reduction. This of course was when they still had access to the FTC.

 

[ExCivilian]

Here's my lease if it helps.

 

[krusshall]

Here's my lease if it helps.

Nice I see you used the 7500 to pay all the upfront charges. And your dealer gave you a little reduction off MSRP.

 

[ExCivilian]

That's a $1500 dollar CA rebate that is credited upon purchase.

They didn't know about it until I said something so make sure to inquire.

 

[krusshall]

That's a $1500 dollar CA rebate that is credited upon purchase.

They didn't know about it until I said something so make sure to inquire.

I wish my state had it but alas no.

 

[TT97]

That's a $1500 dollar CA rebate that is credited upon purchase.

They didn't know about it until I said something so make sure to inquire.

I completely forgot about the $1,500 credit - I saw your paperwork and for the past week I thought you had gotten the dealer to knock off $1,500 from MSRP. (Still a great deal but have to remove you off of demigod status I placed you in ). I definitely need to remember about the $1,500 credit (and the $500 I already paid that some dealers are "forgetting.")

 

[Heo13]

Hello, I just took an FE home with a lease in the San Francisco Bay Area yesterday. The $7500 fed credit and the $1500 clean fuel rebate are put under the rebate and non cash section. The $500 deposit is under amount to be paid in cash. They add up to $9500. The taxes, fees, registration, etc. and first month payment are deducted from $9500. That amount is then being deducted from msrp to get your adjusted capitalization cost, this is the price they used to calculate your payments. By the way the MF for me was 00143.

 

[Imeaus]

Thanks everyone. This helps a ton. I have to see what happens with me regarding NJ's temporary suspended rebate. Hoping VW will either deliver or hold it until after 7/1.


While I am getting "just" the pro version I am very excited to give it a test drive when it comes in (I know I can do the FE but I always like testing what I plan to buy). I will make sure to give my details once I (hopefully) decide to pull the trigger.

 

[RRV22]

Here's my lease if it helps.

Thanks...good info to have as I'm a leaser.

 

[Imeaus]

Here's my lease if it helps.

Probably a stupid question for you. Where is the "destination charges" location on your document? I remember seeing the "$1195" thrown around and was curious how it was incorporated with yours.

Thanks!

 

[ExCivilian]

Probably a stupid question for you. Where is the "destination charges" location on your document? I remember seeing the "$1195" thrown around and was curious how it was incorporated with yours.

Thanks!

It’s baked into the MSRP of $45,190.