The Time to Consider Leasing a New Electric Vehicle
If you've been thinking about purchasing a new electric vehicle, you're certainly aware of the shifting financial and political landscape related to pricing and incentives. With recent changes to federal tax credits for EVs, it's essential to understand how this affects your decision-making process. In this article, we'll explore why leasing might be the better option than buying a new EV.
The Shift in Tax Credits
The main point I want to make is that maybe instead of looking to purchase, it's extremely right to lease a new EV. While it's always nice to make payments towards owning your own vehicle outright, the recent changes to federal tax credits for EVs have created a situation where leasing might be the better option. This is because you open yourself up to a greater range of vehicles that still qualify for tax credits and these credits can better affect your actual monthly payment instead of simply serving as a means to reduce your tax liability in a given year.
The Inflation Reduction Act: A New Perspective
Under the current rules of the inflation reduction act, as it pertains to acquiring a new electric vehicle, there are certain requirements that need to be met for a vehicle to be eligible for the maximum $7,500 tax credit. Firstly, the vehicle must undergo final assembly in North America. Secondly, at least 50% of the value of the battery components must be either produced or assembled in North America. Furthermore, 40% of the value of the critical minerals sourced for the battery must come from the US or one of our free trade partners. Lastly, the MSRP for vans SUVs or trucks must be under $80,000, while it must be under $55,000 for other vehicles. There are also income limits that apply.
A List of Qualifying Vehicles
With these requirements in mind, here's a list of some qualifying vehicles that still qualify for the full $7,500 tax credit at this time. These include the Cadillac Lyriq, Chevy Blazer Bolt EV, Bolt EUV, Equinox EV, and Silverado EV. Additionally, the Ford Lightning is also eligible for the maximum credit. Furthermore, certain trims of the Tesla Model Y are qualified, including the all-wheel drive model y, as well as the long range model y and performance variant. The Volkswagen ID4 is another option that qualifies for the partial credit.
Vehicles That Don't Qualify
It's essential to note that there are many other great EV options available in the market, but they do not qualify for the full $7,500 tax credit. For example, you don't get a credit if you buy the Hyundai Ioniq 5 or Kia EV6. There are also no Benz EQ models listed that qualify for the maximum credit, as well as none of the upper run Tesla models and no Audi or Porsche models either.
The Loophole: Leasing a Vehicle
Now, here's the loophole I want to bring up. The way the inflation reduction act is written is that a leased vehicle qualifies for the tax credit because it's considered commercial. This means that you're technically renting the vehicle from the bank that owns it during your lease period. So, the bank will get the least credit, but the automakers are using this as a direct way to lower your lease payment. It's almost like you put $7,500 down right off the top. The credit maxes at $7,500 for vehicles under 14,000 pounds, which is what we're dealing with here.
A Bit Deeper into Lease Deals
Another bit of good news is that since this technology is improving fairly quickly at the moment, you'll be ready for improved models as they come online two and three years down the road. So, it's essential to dig a bit deeper and find automakers ready to dole out lease deals. This way, you can take advantage of the current incentives while still getting access to newer and better models in the future.
In conclusion, when considering a new electric vehicle, leasing might be the better option than buying. With recent changes to federal tax credits for EVs, leasing allows you to open yourself up to a greater range of vehicles that still qualify for tax credits and these credits can better affect your actual monthly payment. By understanding the requirements for the maximum $7,500 tax credit and exploring lease deals, you can make an informed decision about your next electric vehicle purchase.
"WEBVTTKind: captionsLanguage: enif you've been thinking about purchasing a new electric vehicle you're certainly aware of the shifting financial and political landscape related to pricing and incentives and if you're not well you should be and I'm here to help navigate this all a little bit but the main point I'm going to make in this specific video is that maybe instead of looking to purchase the time is extremely right to lease a new EV instead thank you it's always nice to be able to make payments towards owning your own vehicle outright however the recent changes to federal tax credits for EVS have created a situation where leasing might be the better option that's because you open yourself up to a greater range of vehicles that still qualify for tax credits and these credits can better affect your actual monthly payment instead of Simply serving as a means to reduce your tax liability in a given year sounds confusing somewhat but it's all actually really simple and we're going to break it down for you under the current rules of the inflation reduction act as it pertains to acquiring a new electric vehicle in order for a vehicle to be eligible for the max 7 500 tax credit that needs to undergo final assembly in North America then 50 of the value of the battery components are either produced or assembled in North America and further 40 percent of the value of the critical minerals sourced for the battery need to come from the U.S or one of our free trade Partners finally the MSRP for Vans SUVs or trucks has to be under eighty thousand dollars and it has to be under fifty five thousand dollars for other vehicles and there are some income limits as well I've posted a link in the description which outlines everything I've mentioned and has a list of all the cars so with these requirements if you're looking to buy a new EV these are the ones that actually qualify for the full 7 500 at this time the Cadillac lyric Chevy Blazer bolt bolt euv Equinox and Silverado the Ford Lightning the Tesla Model 3 Performance the model y all-wheel drive model y all-wheel drive Long Range model y performance and then the various trims of the Volkswagen id4 some Vehicles still qualify for the three thousand seven hundred fifty dollar partial credit those would be the Ford e-transit and Machi the rivien r1s and r1t and the Tesla Model 3 all-wheel drive long range or rear-wheel drive standard range there are a few plug-in hybrids that qualify for full or partial credit as well but I'm just talking follow-on battery electrics right now as you can see there are definitely a handful of good models that get tax credits but this list leaves off tons of otherwise great EV options for example you don't get a credit if you buy the Hyundai ioniq 5 or kia ev6 there are no Benz EQ models listed none of the upper run Tesla models and no Audi or Porsche models either here's the loophole though as to why I'm saying you should currently consider a lease the way the inflation reduction Act is written is that a leased vehicle qualifies for the tax credit since it's considered commercial this is because you're technically renting your vehicle from the bank that owns it during your lease period so the bank will get the least credit but the automakers are using this as a direct way to lower your lease payment since a new vehicle lease typically sees the automaker or rather the automaker's finance arm of the company as a vehicle owner they can turn around and direct the credit back into the cost of the lease this lowers the cost and thus lowers your monthly payment it's almost like you put 7 500 down right right off the top the credit maxes at 7 500 for vehicles under 14 000 pounds which is what we're dealing with here even if you include the insane nine thousand pound Hummer EV automakers are using this to create more attractive leasing deals for their EVS especially on those that don't qualify under the purchase rules Now's the Time to dig a bit deeper and find automakers ready to Dole out the lease deals and another bit of good news is that since this Tech is improving fairly quickly at the moment you'll be ready for improved models as they come online two and three years down the roadif you've been thinking about purchasing a new electric vehicle you're certainly aware of the shifting financial and political landscape related to pricing and incentives and if you're not well you should be and I'm here to help navigate this all a little bit but the main point I'm going to make in this specific video is that maybe instead of looking to purchase the time is extremely right to lease a new EV instead thank you it's always nice to be able to make payments towards owning your own vehicle outright however the recent changes to federal tax credits for EVS have created a situation where leasing might be the better option that's because you open yourself up to a greater range of vehicles that still qualify for tax credits and these credits can better affect your actual monthly payment instead of Simply serving as a means to reduce your tax liability in a given year sounds confusing somewhat but it's all actually really simple and we're going to break it down for you under the current rules of the inflation reduction act as it pertains to acquiring a new electric vehicle in order for a vehicle to be eligible for the max 7 500 tax credit that needs to undergo final assembly in North America then 50 of the value of the battery components are either produced or assembled in North America and further 40 percent of the value of the critical minerals sourced for the battery need to come from the U.S or one of our free trade Partners finally the MSRP for Vans SUVs or trucks has to be under eighty thousand dollars and it has to be under fifty five thousand dollars for other vehicles and there are some income limits as well I've posted a link in the description which outlines everything I've mentioned and has a list of all the cars so with these requirements if you're looking to buy a new EV these are the ones that actually qualify for the full 7 500 at this time the Cadillac lyric Chevy Blazer bolt bolt euv Equinox and Silverado the Ford Lightning the Tesla Model 3 Performance the model y all-wheel drive model y all-wheel drive Long Range model y performance and then the various trims of the Volkswagen id4 some Vehicles still qualify for the three thousand seven hundred fifty dollar partial credit those would be the Ford e-transit and Machi the rivien r1s and r1t and the Tesla Model 3 all-wheel drive long range or rear-wheel drive standard range there are a few plug-in hybrids that qualify for full or partial credit as well but I'm just talking follow-on battery electrics right now as you can see there are definitely a handful of good models that get tax credits but this list leaves off tons of otherwise great EV options for example you don't get a credit if you buy the Hyundai ioniq 5 or kia ev6 there are no Benz EQ models listed none of the upper run Tesla models and no Audi or Porsche models either here's the loophole though as to why I'm saying you should currently consider a lease the way the inflation reduction Act is written is that a leased vehicle qualifies for the tax credit since it's considered commercial this is because you're technically renting your vehicle from the bank that owns it during your lease period so the bank will get the least credit but the automakers are using this as a direct way to lower your lease payment since a new vehicle lease typically sees the automaker or rather the automaker's finance arm of the company as a vehicle owner they can turn around and direct the credit back into the cost of the lease this lowers the cost and thus lowers your monthly payment it's almost like you put 7 500 down right right off the top the credit maxes at 7 500 for vehicles under 14 000 pounds which is what we're dealing with here even if you include the insane nine thousand pound Hummer EV automakers are using this to create more attractive leasing deals for their EVS especially on those that don't qualify under the purchase rules Now's the Time to dig a bit deeper and find automakers ready to Dole out the lease deals and another bit of good news is that since this Tech is improving fairly quickly at the moment you'll be ready for improved models as they come online two and three years down the road\n"
