chargrille, 10 months ago

I say "potentially screwed" because I am 99% certain the dealer took the $7500 credit even though in the end we actually exercised the option to buy the car. And I think that the IRA would prevent us from getting either credit, because it's based on the year that you take delivery of the car, which of course technically, lessees do at the outset of the lease.

This can't be the intent of the law....

adamjcook, 10 months ago

@chargrille I leased a VW ID.4 back in May of 2021 in Texas. My dealer took the $7500 credit - which lowered the monthly payments.

I bought out the lease and sold it to Carvana in October of last year when I moved from Dallas to Detroit (where I was able to go car-free).

I did not claim any EV-related credit on my last year's taxes as the instructions in the tax software clearly prohibited it.

That said, in May of 2021, the IRA did not exist when I leased...

chargrille, 10 months ago

@adamjcook Thank you Adam, this is super helpful! Yeah, I think the $4000 credit could apply, because technically the dealership owns the car, & we were renting it from them. So, we're buying a used car & the first owner is the dealership. But I think we can't.

The structure discourages the leasing party from buying the car, because it's actually the same or cheaper to buy a new EV, due to the $7500 tax credit, OR a separate, different used car (even same year/model!), due to $4000 IRA credit.

chargrille, 10 months ago

@adamjcook
Congratulations on going car free, by the way! And thank you!

Did you like the ID4? Had you had any other EVs before it?

adamjcook, 10 months ago

@chargrille Thanks!

Nope. Despite my best efforts, in moving from Chicago to Dallas, I was forced to get a car (due to the sprawl in Dallas).

So, the ID.4 was actually the first car purchase I had made in almost 20 years.

It was a great car! Zero issues - even with long-distance trips and charging.

I would look at it again if I was forced to.

But I absolutely despise driving, so hopefully not. 🤪