You can negotiate with the dealer to have the federal tax credit applied to your lease, but how it is handled varies and is ultimately up to the dealer. Here are the key points:
- When leasing a clean vehicle, the tax credit generally goes to the lessor (dealer or leasing company), who may pass that savings on to you by lowering your lease payments or initial deposit. You can negotiate for this benefit by asking the dealer to reduce your costs by the amount of the tax credit, but they are not obligated to do so.
- The dealer typically receives the Commercial Clean Vehicle Tax Credit and may reflect this in the lease pricing. Many dealers pass this credit along to lessees in the form of lower upfront costs or monthly payments, but it differs from a direct tax credit given to you as the lessee.
- Negotiation leverage exists because dealers compete and lease terms can be negotiable. You should explicitly confirm that the tax credit is factored into your lease contract. If the dealer refuses to apply it, you can consider leasing elsewhere.
- Some dealers inflate vehicle prices or fees which can offset the tax credit, so vigilance in negotiation is necessary to ensure you actually receive the benefit.
- The tax credit originates from the manufacturer or lessor and is passed down through the finance structure, so dealing with the dealer’s finance manager may be key to securing the credit on your lease.
Summary:
You can and should negotiate with the dealer to ensure the tax credit is applied to your lease, by asking them to reduce your deposit or monthly payments accordingly and confirming it in your lease contract. Dealers are not required to pass the credit on, but many do. If a dealer refuses, shopping around is advisable since competing dealers often apply these savings to attract customers.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-negotiate-with-the-dealer-to-ensure-the-tax-credit-is-applied-to-my-lease/
