thebishman

He should lease to get the maximum cap cost reduction, with all of the incentives, then buy out the lease after a couple of months; or at least look into doing so.

RMSko

The incentives are spread over the lease term and so you don’t get the benefit of those if you buy it out early. And when you price in all the buyout fees that makes it a lot more expensive than just buying it at the outset.

Bada Bing

Good points. I realize that some people prefer to purchase rather than lease but in the case of EVs like this, you are better off leasing. In addition to the lease incentives, the residual values set for leases are higher than what these cars command after 3 yrs. I would lease one for 3 years and if I’m in love with it, try to find a CPO used one.

RMSko

Thx. It’s a tough call because for him he’ll only drive about 2000 miles per year and so he thinks overall he’s better off buying. He may not be right but what he really wants to know is whether $5500 off list is a decent purchase deal.

JNealCox

Don't you still get the $7500 Fed discount if you lease, and only if you lease?

RMSko

Yes but you need to keep the lease for the full term, which means you also pay financing costs for the lease term.

calbear92

I don't know where you get that from. The $7500 lease cash is taken off at point of sale (and taxed in states like CA). You are free to buy out afterwards and not pay the future rent charge, but I wouldn't want to own one of these since technology is rapidly changing and will drop like a rock at the end of the lease. Why take that hit when AFS can take that hit.

RMSko

Yes, but even though it’s taken off of the purchase price at point of sale, it’s then credited to the lessee by reducing the monthly lease payment amount and not out of the residual and so if you buy out the car after a few months you in essence lose that benefit and end up worse than if you had initially purchased the car.

JNealCox

...and that is worse than having to finance the entire $7500 is you finance a purchase? Might make sense with an all cash purchase. I kind of like having my monthly lease payments being brought down to more manageable levels.

RMSko

Yea - forgot to mention that this would be an all cash purchase