<img src=https://nenpower.com/wp-content/uploads/2025/04/image-13800.webp alt=’What are the potential risks for lessees if the dealership doesn’t pass on the tax credit’ />
When leasing an electric vehicle, there are potential risks if the dealership does not pass on the tax credit:
Risks for Lessees
- Higher Lease Costs: The lessee may end up paying higher monthly payments or lease prices since the dealership retains the tax credit. There is no guarantee that the dealer will amortize the credit across lease payments or omit some payments entirely.
- No Direct Tax Benefit: The lessee cannot claim the tax credit themselves, as it belongs to the lessor (dealer). Any savings must come through the dealer’s decision to apply it to the lease, which may not always happen.
- Limited Bargaining Power: Lessees have limited power to negotiate the inclusion of the tax credit savings in their lease agreement. Deals are typically structured by the dealership, and they decide whether to pass on savings or not.
- Regulatory Changes: The current loophole that allows dealerships to claim the tax credit could change after 2025. If regulatory changes occur, lessees might face even higher costs without any potential savings from tax credits.
Overall, while leasing an EV offers some benefits due to the potential tax credit, lessees depend entirely on the dealership’s willingness to pass these savings along, which can be unpredictable.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-potential-risks-for-lessees-if-the-dealership-doesnt-pass-on-the-tax-credit/
