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FloridaLarry

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If you lease the vehicle the tax credit is applied up front and you don't have to wait for your tax year to apply. This is how it is in WA state (at least), but may be different in other states. The only issue is you will end up paying a higher price at the end of your lease term if you decide to keep the Jeep, which adds up to about the same amount as the tax credit.
As I said earlier, it can be applied to capital cost reduction (to lower the lease payment) if the dealer wants to. It's their discretion to sweeten the lease deal to get you to sign. They might apply all, some, or none of the $7500, which is theirs to give.
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Jocko

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If you lease the vehicle the tax credit is applied up front and you don't have to wait for your tax year to apply. This is how it is in WA state (at least), but may be different in other states. The only issue is you will end up paying a higher price at the end of your lease term if you decide to keep the Jeep, which adds up to about the same amount as the tax credit.
Hmm I'm curious what led you to that conclusion. As @FloridaLarry pointed out, the tax credit is applied as a cap cost reduction when you lease. In terms of the lease, it's 100% the same as you putting a downpayment. Your buyout price at the end of the lease is based on the MSRP times the residual value quoted in your lease. The tax credit has no bearing on that.

And, not specific to your post, but I did want to clarify that the tax credit goes to the financing company (typically Chrysler Capital or Ally) and the finance company passes it on to us. So the dealer actually has no part in it. If anyone encounters a dealer trying to pocket some of that $7500, run away quickly!
 
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Hmm I'm curious what led you to that conclusion. As @FloridaLarry pointed out, the tax credit is applied as a cap cost reduction when you lease. In terms of the lease, it's 100% the same as you putting a downpayment. Your buyout price at the end of the lease is based on the MSRP times the residual value quoted in your lease. The tax credit has no bearing on that.

And, not specific to your post, but I did want to clarify that the tax credit goes to the financing company (typically Chrysler Capital or Ally) and the finance company passes it on to us. So the dealer actually has no part in it. If anyone encounters a dealer trying to pocket some of that $7500, run away quickly!
Watch the whole video, but this lessee got some of the lessors $7500 money as part of his lease, explained at this point in his video:

NOTE: He's wrong about 'not all states get the $7500'. All states do since its a federal tax credit, but I think he means some states offer the own credits as well.

The dealer does have a part in the credit.. its a deal worked out with the Ally and Chrysler Capital that the dealer can use up to $7500 to lower the payment via cap cost reduction. Ally will be getting the tax credit for sure, so they are 'up' $7500 (less the dealer's cut) whenever they lease a 4xe. They get to then apply an equivalent amount through the lease negotiations between the dealer and the customer.

The thinking goes that if Ally doesn't get the lease, they don't get the $7500 so it makes sense for them to give away 0 to 100% of the $7500 as part of the lease negotiations. But they don't have to budge or give very much of the $7500 if they don't want to.
 

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I think we are saying the same thing. Sure nothing is stopping the finance department at the dealer from typing up the lease without including some or all of the $7500 and trying to keep it for themselves. Sure car dealers like to pull different tricks. But this one is particularly low, and I would have zero interest in dealing with anyone with such unscrupulous business practices. I just want to encourage anyone who encounters this to look elsewhere. You deserve better!
 

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As far as leasing goes, I recieved over $14k in tax credits that the dealer applied straight to me off the msrp. I also Recieved almost 8k off the msrp sale price. I would say I made out pretty good for once on the deal.
 

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Jeeperz Kreeperz

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@ACEJL would you mind listing out the specific tax credits you mentioned here:

As far as leasing goes, I recieved over $14k in tax credits that the dealer applied straight to me off the msrp. I also Recieved almost 8k off the msrp sale price. I would say I made out pretty good for once on the deal.
I’m wondering if maybe the $14K might be a combination of tax credits, and other discounts/incentives.
 

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The dealer had stated to me that some were the 7500 and he had a few that were over 14k in tax credits. The additional 8k under msrp covered all the additional incentives. It was definitely a great deal. Saved 22k.
 

Jeeperz Kreeperz

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The dealer had stated to me that some were the 7500 and he had a few that were over 14k in tax credits. The additional 8k under msrp covered all the additional incentives. It was definitely a great deal. Saved 22k.
Got it. Sounds like the $14K figure is not TAX credits, but total credits/incentives, etc. Since this is a thread about how the tax credit can result in a lower price, I didn’t want anyone to get confused, and think there were $14K of TAX credits available.

Congrats on the great deal!!
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