Negotiating lease terms to include a tax credit can be challenging, especially since tax credits for leased vehicles often benefit the leasing company rather than the lessee. However, here are some strategies you might find helpful:
- Understand the Current Market:
- Leases for new electric vehicles (EVs) are often attractive due to the federal tax credits that manufacturers and dealers receive. These credits are usually factored into the lease deal, making EV leases more competitive compared to internal combustion engine (ICE) vehicles.
- Clarify Inclusions:
- When reviewing a lease deal, ensure that you understand what is included in the terms. In many cases, the numbers presented for EV leases already account for the federal tax credit benefits, which are absorbed by the leasing company.
- Negotiation Strategies:
- Transparency: Request clear details on how the tax credit benefits are incorporated into the lease terms.
- Market Comparison: Compare different lease offers to ensure you’re getting the best deal possible.
- Flexibility: Be open to negotiating other terms, such as monthly payments or upfront costs, if the tax credit benefits are not directly transferrable.
- Inclusion Amount:
- For leased vehicles used for business purposes, you may need to report an additional “inclusion amount” as income if the vehicle’s purchase price exceeds certain thresholds. This might not directly impact your negotiation strategy for consumer leases but is important for business leases.
- Education:
- Understanding that tax credits for leases primarily benefit the dealer or manufacturer can help you manage expectations during negotiations.
In summary, while you cannot effectively “negotiate” for the tax credit to be included in your lease as it typically benefits the leasing company, you can ensure that you’re getting the best overall deal by comparing different offers and negotiating other lease terms.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-can-i-effectively-negotiate-the-lease-terms-to-include-the-tax-credit/
