Mike Martin
TVWBB Member
My question would be why would you want to lease. I did a few times years ago and it's a no win situation IMO.
So I drove an electric car
- Thread starter LMichaels
- Start date
Caveat: I've never leased, I've never been able to make the numbers work for me. I've also never bought a new vehicle.
My observations on leasing anything has been it really only makes sense if you intend on walking away from the asset at the end of the lease. Residual buyouts at the end of the lease tended to be higher than market value at the time, and the nickel & dime damage & overage charges will add up quickly.
A $15k incentive? That sounds vaguely wrong to me. I'd really be trying to figure out where the money is going.
As far as your in-laws observation.... I have a little pithier viewpoint. You'll always leave something on the table. That's where the leasing company makes money. Your payments will always be more than initial value + fees - residual. If you're churning vehicles, it might make sense if all you're really covering with the lease is depreciation.
My observations on leasing anything has been it really only makes sense if you intend on walking away from the asset at the end of the lease. Residual buyouts at the end of the lease tended to be higher than market value at the time, and the nickel & dime damage & overage charges will add up quickly.
A $15k incentive? That sounds vaguely wrong to me. I'd really be trying to figure out where the money is going.
As far as your in-laws observation.... I have a little pithier viewpoint. You'll always leave something on the table. That's where the leasing company makes money. Your payments will always be more than initial value + fees - residual. If you're churning vehicles, it might make sense if all you're really covering with the lease is depreciation.
LMichaels
TVWBB 1-Star Olympian
Actually I got the answer this AM from the dealer. It's all good. If you purchase the car because it's made in Japan it does not quality for $7500 rebate. But due to weird vagaries in how our tax codes work, and a few other things Toyota can take advantage of the incentive from the govt even though the buyer cannot if and only if it's a lease. So they simply take any and all incentives from a purchase and apply it to the lease value.
Frankly I don't care how it's done. But it makes the proposition VERY attractive and in the end, if you convert the lease at the end it's like having bought the car brand new for like $13k off.
Nice thing, as it's first time "owning?" a BEV, if it's not holding up or working out at the end of 36 mos I'll simply turn it back in, if we really are liking it, I can buy it right from Toyota financial for a very nice residual, as a Certified vehicle and likely get even more incentives from that as they many times do.
Frankly I don't care how it's done. But it makes the proposition VERY attractive and in the end, if you convert the lease at the end it's like having bought the car brand new for like $13k off.
Nice thing, as it's first time "owning?" a BEV, if it's not holding up or working out at the end of 36 mos I'll simply turn it back in, if we really are liking it, I can buy it right from Toyota financial for a very nice residual, as a Certified vehicle and likely get even more incentives from that as they many times do.
Timothy F. Lewis
TVWBB 1-Star Olympian
That’s how the guy set up my KIA purchase, get as many little incentive things as you can! After the lease we negotiated a good deal for a buy it out deal so, that worked for us.
Mike Martin
TVWBB Member
What is the rebate for and where does it come from?
Edward Lee
TVWBB Fan
The Inflation Reduction Act (IRA) of 2022 made a tax credit of up to $7,500 available to qualifying purchasers of certain EVs. But restrictions on buyer income and where the car components are manufactured severely limit the availability of that credit to car buyers. Leasing companies (the firms owned by or partnered with automakers that consumers lease cars from), however, aren’t subject to those restrictions, which means they can receive the tax credit and pass it on to the consumer in the form of a less-expensive lease.
Everything You Need to Know About Leasing an EV or PHEV With a Tax Credit - Consumer Reports
Our experts show you how to qualify for a federal tax credit of up to $7,500 by leasing an electric vehicle or plug-in hybrid.
LMichaels
TVWBB 1-Star Olympian
This. They told me this right up front at the dealer. So, on the lease (only) Toyota Financial is offering $7500 "incentive" then combining it with the $7500 from the gummint, and offering it to the lessee. In the end it's a "win win" for me. As it allows me to get into this thing "low risk" and then know an absolute "rock bottom" situation (or worst case) if I decide I like it enough to keep it. After all. What better used car can you buy than one you've had and cared for properly for the previous 3 years, rather than a stranger that did who knows what?The Inflation Reduction Act (IRA) of 2022 made a tax credit of up to $7,500 available to qualifying purchasers of certain EVs. But restrictions on buyer income and where the car components are manufactured severely limit the availability of that credit to car buyers. Leasing companies (the firms owned by or partnered with automakers that consumers lease cars from), however, aren’t subject to those restrictions, which means they can receive the tax credit and pass it on to the consumer in the form of a less-expensive lease.
Everything You Need to Know About Leasing an EV or PHEV With a Tax Credit - Consumer Reports
Our experts show you how to qualify for a federal tax credit of up to $7,500 by leasing an electric vehicle or plug-in hybrid.www.consumerreports.org
My experience driving it was my first ever behind the wheel experience. I guess if I was resigned to only a 3 year commitment then any other brand could have sufficed IOW a KIA, Hyundai, VW, GM, what have you since I truly have no faith in those brands based on past and family experiences owning them. Or dealing with them on a professional level. Again, not wanting to start an "issue" here. If someone else "likes" any of them or feels I'm wrong. It's fine. I respect that. But, all I have to go on are my own actual experiences. And I will stick to that. There are "things" and people I trust implicitly. And others I do not.
In any case, now I have the option. If I decide the BEV is doing everything I could hope for and then some and want to stay in it, I have the option of being able to purchase it and in a $$$ manner I could not be able to do in another manner.
Believe me I tell everything like it is (likely why I am sort of treated funny by a few here). But I really don't have a filter. And if this thing turns out to be a bad choice or not do what I want. I'll be forthright and point it out. If it does, I'll point that out.
Say what you will. Everyone knows they can count on me for that
LMichaels
TVWBB 1-Star Olympian
Monday morning. I just ordered a level 2 charger for it as well which will be here Monday. https://www.amazon.com/gp/product/B0CN9HL376/?tag=tvwb-20So, when do you take delivery?
Though I am nowhere near being able to install my 220V 50amp line. I ordered that charger so I will not be constantly lugging in and unplugging the 240V receptacle. Plus it's programmable to take advantage of Com Ed's night time rates (since I have hourly rate plan). And it has a 30' cord allowing it to reach outside the garage until I can get my garage straightened out.
Also my Toro Power Clear 60V snow blower arrived Thursday. I assembled and charged it yesterday. It's pretty cool. I'll be selling the gas one. Come winter I will be able to use the 7.5AH battery on the mower alongside the 10AH one with the blower (which can hold 2 batteries and will switch to the reserve as the 10 runs low.
Then only 2 things of outdoor equipment will need gasoline. My generator (which I will convert soon to LP/NG) and my power washer of which when I find one suitable in battery power I will move to. Then I will only have to take care of 2 ICE's The gen and my Kubota (which will have to be pried from my cold dead hands).