Jeeps are Getting Expensive

[five9dak]

Don't worry, it'll be transitory. (it won't)

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[dz6t]

Nope, wrong on option 1. Purchase price at end of lease is the residual, which doesn't change based on discounts. Incentives are applied to capitalized cost, at least with CCAP.

What I am referring to is even with the $12k incentives. the total lease payment plus the residual is about the same as the car price if you buy it outright. Which mean the leasing company is charging you $12K extra for the 3 years of lease.

 

[Heimkehr]

The only ”evidence” that there is a problem is the click bait YouTubers saying “automakers are screwed!!!”

They're click-chasing bullshitters, devoutly to be ignored.

...the ONLY way that 4xe is still selling in the numbers it's selling is the massive amount of federal, state, factory and dealer incentives that it's eligible for. Also do not forget that the 4xe weighs more that 6,000lbs, which makes is eligible for accelerated depreciation under Article 179

Mm. For all of the hollering about the 4xe being the "best selling PHEV", would that remain true if the public assistance schemes, and tax accounting angle, were withdrawn wholesale?

 

[ek1]

Don't worry, it'll be transitory. (it won't)

Also, the border is secure

 

[stumblinhorse]

Mm. For all of the hollering about the 4xe being the "best selling PHEV", would that remain true if the public assistance schemes, and tax accounting angle, were withdrawn wholesale?

Maybe not. But since all PHEV get similar assistance schemes etc. if all of that were stripped away from everything, who knows what would be #1.

 

[Heimkehr]

Maybe not. But since all PHEV get similar assistance schemes etc. if all of that were stripped away from everything, who knows what would be #1.

Were the taxpayer subsidies stripped away, I'd wager that the PHEV with the lowest cost of entry would occupy the #1 spot.

 

[ek1]

What I am referring to is even with the $12k incentives. the total lease payment plus the residual is about the same as the car price if you buy it outright. Which mean the leasing company is charging you $12K extra for the 3 years of lease.

Nope. These incentives simply lower the selling price (i.e. the CAP cost) of the vehicle. In case of a lease, the bank captures these incentives and therefore lowers the cap cost of the vehicle that you lease by the amount of these incentives. In case of a loan, you buy the vehicle for whatever price you can negotiate with the dealer and THEN receive all the government incentives yourself (usually in a form of income tax credit), thus lowering your overall payout.

The total of all lease payments is the depreciation over the term or the lease PLUS whatever the money factor (i.e. the APR that the bank is charging you) PLUS sales tax on the sum of the former two amounts (unless sales tax is paid upfront).

In most cases there are 3 types of incentives:

The first is the government incentives (federal, state or county/city) for "green" vehicles. These are tied to a particular make/model/year of the vehicle and the selling market. None of the government incentives are contingent upon whether the vehicle is leased or bought.

The second one is the manufacturer incentives. These can be contingent upon leasing vs. buying When they have a turd (i.e. a vehicle that does not sell well), manufacturers use their own bank to offer either an artificially low money factor, an inflated residual or some cash on the hood to lower the cap cost of the vehicle. For loans, they offer 0% APR to accomplish similar results. Programs change every month and sometimes are tied to particular regions.

The third one is the dealer incentives. These usually happen when a dealer has one or more turds on their hands and wants to get rid of that ASAP. Some high-volume dealers also offer discounts on custom-ordered vehicles. These incentives usually tied to one particular vehicle or multiple vehicles of the same make/model/year. Most often these incentives are in a form of a cash discount off MSRP and sometimes buyer is required/pressured to get financing from a dealer's bank (which often offers really bad rates) so the dealer can get some kickbacks.

I believe the example I brought up with my friend in CT had ALL the incentives included. There was a $7,500 federal credit, thousands more from CT government incentives, AND some stuff from Stellantis. This was a 1-month program specifically on 4xe's and it expired on Sept 30, 2023.

 

[stumblinhorse]

Were the taxpayer subsidies stripped away, I'd wager that the PHEV with the lowest cost of entry would occupy the #1 spot.

I had that typed out . The cheapest…. But I think sales would be so low of anything besides a Tesla, it would be too close to call.

 

[BXFXJeep]

They're click-chasing bullshitters, devoutly to be ignored.



Mm. For all of the hollering about the 4xe being the "best selling PHEV", would that remain true if the public assistance schemes, and tax accounting angle, were withdrawn wholesale?

Subsidized PHEVs have been around for a long time, no one wanted them, people want the Wrangler.

For all the groaning and bitching about 20 mile range and taking 2 hours to charge, the Mitsubishi PHEV is way cheaper, has double the range and charge to 80% in 38 minutes....oh yea has a lot of standard features too, but you can't even bribe people to buy ugly

 

[dz6t]

As for Federal tax credits, Wrangler 4xe only qualified for $3750 if you purchased it, but $7500 if you lease it. If you lease it, the leasing company captures the full $7500 and applies to your lease calculations.
If a dealer gave you full $7500 federal tax credit this year when you purchase a 4xe, which happened for some dealer to make a sale, you will owe $3750 tax when you file 2024 tax. Also if you are not qualified for the federal tax credit due to whatever reason, you have to pay back the full $7500.

 

[5Robin]

Why? Jeeps are meant to appeal to everyone and be available to everyone. Putting them at that high of a price point puts Wranglers out of reach for a lot of people.

 

[BXFXJeep]

They are

Why? Jeeps are meant to appeal to everyone and be available to everyone. Putting them at that high of a price point puts Wranglers out of reach for a lot of people.

$30k can't get any cheeeeper than that.

 

[laroo]

As for Federal tax credits, Wrangler 4xe only qualified for $3750 if you purchased it, but $7500 if you lease it. If you lease it, the leasing company captures the full $7500 and applies to your lease calculations.
If a dealer gave you full $7500 federal tax credit this year when you purchase a 4xe, which happened for some dealer to make a sale, you will owe $3750 tax when you file 2024 tax. Also if you are not qualified for the federal tax credit due to whatever reason, you have to pay back the full $7500.

You keep saying stuff, but you have no idea what you're talking about.

 

[dz6t]

EV tax credit law has changed in 2023, so talk to your accountant or consult a professional to see if you still have the correct information.

 

[TheBirdie72]

I remember when bread was a nickel ?

I remember when people referred to money as bread. Those were the good old days… filled with swell things and good looking broads… ??

Ok, maybe I’m not that old lol

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