When a dealer passes on a tax credit during an electric vehicle lease, the terms you can negotiate are somewhat limited compared to a purchase. Here are key points to consider:
Negotiating Lease Terms
- Gross Capitalized Cost: This is the vehicle’s sale price, which directly affects your monthly payments. You can negotiate this cost, but if the dealer is offering a special lease promotion, it might be less negotiable.
- Monthly Payments: While the dealer may have factored the tax credit into the lease price, negotiating the gross capitalized cost can help lower your monthly payments.
- Buyout Price: If you think you might want to purchase the vehicle at the end of the lease, try negotiating the buyout price upfront. This is not typically negotiable once the lease ends.
- Mileage Allowance and Money Factor: These are also negotiable aspects of a lease agreement.
Tax Credits and Leases
- Tax Credit Application: Dealerships can benefit from tax credits when leasing EVs, but these credits are typically already factored into the lease price. Unlike purchases, there is no direct tax credit for lessees; however, the savings are reflected in the lease terms.
- Dealer Discretion: Dealers may choose to pass the benefits of tax credits to customers in the form of lower lease prices or special promotions, but this is at their discretion and can vary.
Recommendations
- Research Market Prices: Understand the current market value of the vehicle you’re interested in to negotiate a better lease agreement.
- Check Advertised Deals: Be aware that advertised lease deals may not always reflect the final price, as dealers can include additional fees or markups.
- Negotiate Proactively: Since the tax credit is already incorporated into the lease price, focus on other negotiable aspects like capitalized cost and buyout price.
Overall, while the tax credit itself is not something you can directly negotiate, you can still negotiate other components of the lease agreement to secure a more favorable deal.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-negotiate-the-lease-terms-if-the-dealer-passes-on-the-tax-credit/
