[Drew18]

Just curious for those willing to discuss this topic.

 

[spaceid]

Finance is my first choice, but I am interested in looking at my options when it comes to leasing.

 

[Drew18]

I’d like the 7500 towards the lease and then buying it out at the end (I think, pending terms). My tax liability isn’t 7500 so I wouldn’t get the full impact that way and then if it comes next year waiting a full year to file.

 

[kchp]

I'll pick whichever option that cost me the least. If there's a manufacturer incentive for financing or leasing (assuming I can buy out), and the math is in my favor, I'll take that. Otherwise, I'll pay cash.

 

[MBrandenburg]

I'm doing the lease, and we'll see what other IDs get released by the time the lease is up 👀 Looking forward to that production Ruggedzz

 

[mryflyguy]

Correct me if I'm wrong but if you lease, the dealer keeps the $7500 rebate, right? Do they discount the lease or use it a a down?

 

[spaceid]

Correct me if I'm wrong but if you lease, the dealer keeps the $7500 rebate, right? Do they discount the lease or use it a a down?

Depends on the dealer, but the idea is that the $7500 becomes an incentive, so it should be subtracted from the negotiated price.

My co-worker's husband got this deal when he bought a Kona a month ago.

 

[Drew18]

from VW’s site if you click the number 3 next the lease price the extra info mentions the 7500 as a rebate. Seems like VW is passing it along or highly encouraging it.

 

[ErickF]

VW Credit would be the lessor. It would be their decision and, as the footnotes quoted above, would be extending the incentive to the lessee.

 

[MBrandenburg]

Correct me if I'm wrong but if you lease, the dealer keeps the $7500 rebate, right? Do they discount the lease or use it a a down?

On my e-golf it was deducted from the lease price, I'm sure it will be the same with the ID4.

 

[Mark Magiera]

In the EV Specialist Live Event toward VW Dealers & their sales staff it was specifically pointed out that "if the customer is purchasing the vehicle in a VCI Lease, that customer will see the benefit as a Lease Bonus, before, which will be a pass though before VCI."

 

[emtonsti]

I'm leaning back towards finance. Even though the numbers are fine, it is taking several weeks to buyout my leases early from my Honda, followed by the Hyundai and to transfer the title in NY, maybe a month to two months to make it happen (which is also fine with Dec/Jan delivery), but a pain. As best as I can tell so far, if the stars align (e.g. a decent trade in price, where NY charges sales tax after the trade in credit is deducted), I can save $1k to $2k total by finance over lease. Lease is still a very viable back up plan.

 

[briloop]

Correct me if I'm wrong but if you lease, the dealer keeps the $7500 rebate, right? Do they discount the lease or use it a a down?

The website (Introducing the all-electric Volkswagen ID.4) where you build and reserve the ID4 Pro states at the bottom:
Monthly lease payment based on MSRP of $39,995 and destination charges less a $7,500 Lease Incentive and suggested dealer contribution resulting in a capitalized cost of $31,183.80.

 

[briloop]

Reading the results of the poll so far (Oct. 2, 2020), 58% of the respondents say they will finance. Since I've been following the EV market for about four years, it was my impression that the majority of EV buyers lease their EVs, not finance them.

The last VW I owned was 40 years ago. Growing up in the 60's and 70's, VW had a reputation for making quality cars. But, do they still have that reputation?

The ID4 is a brand new vehicle on a new platform. And, it is battery-powered, and I don't know what, if any, problems VW batteries have. I'm planning to lease mine, but I could change my mind, depending how the horse-trading goes with the dealer.

 

[scdald21]

The issue I have with leasing is mileage limitations. As a family we'll put on 20,000-30,000 miles in a year. Well... not THIS year; but on average, we use way too many miles.

 

[ErickF]

The issue I have with leasing is mileage limitations. As a family we'll put on 20,000-30,000 miles in a year. Well... not THIS year; but on average, we use way too many miles.

I'm the opposite. I would use far less than 10k and would risk leaving some mileage allowance on the table - give or take any premium I might get in a buyback for a "low-mileage" vehicle.

 

[briloop]

The issue I have with leasing is mileage limitations. As a family we'll put on 20,000-30,000 miles in a year. Well... not THIS year; but on average, we use way too many miles.

I understand where you are coming from. I average 8,000 miles a year, so, a 10,000 mile limitation is not an issue for me.

 

[eldecarlo]

The batteries have a warranty for 8 yrs or 100k. Why would you have an issue buying? Most testing say the batteries will last 150k on average.

 

[emtonsti]

For me, one of the attractions of a lease, was the ability to turn in the car at 3 years versus the hassle of selling, or probable loss by trade in. At least for now, it is relatively easy to sell a late model used car to either Vroom or Carvana. (Also, for my last two, the manufacturers with low sales, offered very deep discount leasing on the previous year models, sadly that will not be the case now for us ID.4 early adopters.)

I was won over the by EV lease argument, where technology is changing so fast, and 3 year upgrades might be more common and/or easier by lease. On the other hand, if both options are available, I'm moving over to the idea of trying to figure out which would cost less at 3 years, or even if I sell earlier (so many leases now let you buyout early). It is not an easy calculation, and there are some variables (e.g. what would the car sell for in two or three years).

FWIW, for those with less than a $7,500 tax liability (not including self employment tax (ss, etc), there is no carryover for the EV credit, so leasing where you get the full $7.500 is much more attractive (assuming also a good enough credit rating, I don't know what number you need). Also for buying, understand that the minute you drive off the lot, the resale value drops by $7,500, because so many others can get the $7,500 credit.

 

[mtourre]

For me, one of the attractions of a lease, was the ability to turn in the car at 3 years versus the hassle of selling, or probable loss by trade in. At least for now, it is relatively easy to sell a late model used car to either Vroom or Carvana. (Also, for my last two, the manufacturers with low sales, offered very deep discount leasing on the previous year models, sadly that will not be the case now for us ID.4 early adopters.)

I was won over the by EV lease argument, where technology is changing so fast, and 3 year upgrades might be more common and/or easier by lease. On the other hand, if both options are available, I'm moving over to the idea of trying to figure out which would cost less at 3 years, or even if I sell earlier (so many leases now let you buyout early). It is not an easy calculation, and there are some variables (e.g. what would the car sell for in two or three years).

FWIW, for those with less than a $7,500 tax liability (not including self employment tax (ss, etc), there is no carryover for the EV credit, so leasing where you get the full $7.500 is much more attractive (assuming also a good enough credit rating, I don't know what number you need). Also for buying, understand that the minute you drive off the lot, the resale value drops by $7,500, because so many others can get the $7,500 credit.

It’s all about the miles for me. I would blow through 10,000 within 6 months.