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expiredMalaibazaar posted Jan 05, 2025 04:50 PM
Item 1 of 3
Item 1 of 3
expiredMalaibazaar posted Jan 05, 2025 04:50 PM
24-Month Lease on 2024 VW ID.4 RWD Electric Vehicle
$999 down + $149 per month
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one of the worst cars i've ever owned, technology is very poorly designed and frustrating, countless recalls and range is mediocre at best.
there are many more comparable options when it comes to EV. Chevy Equinox being one that is also very well priced.
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It's not a loophole- it's the explicit intent of the law to incentivize buying EVs.
To vastly simplify the EV car buying process the $7500 credit can be transferred to the dealer at time of purchase- letting you take $7500 off what the car "costs" the buyer right at time of sale-- rather than making them borrow the $7500 (or otherwise come up with it) until they later file taxes.
But ALSO-
You can't set up a situation where the dealer might later be on the hook to repay it because the taxpayers end-of-that-year-in-the-future tax situation changes- if you did no dealer would risk it and nobody would accept the credit transfer..
And you don't want to leave the taxpayer on the hook to potentially have some big tax bill because their own tax situation changes after buying the car based on the $7500 credit either.... because you don't want to harm someone who did the thing you incentivized them to do but then lost their job afterward-- or got a credit in January then got pregnant in February so by the time they file taxes they've got an extra kid deduction or something.
I mean, the buyer still has to come up with the REST of the money to buy the car (or have the ability to borrow that much money)-- so it's not like someone who only made $100 or didn't work at all is likely in any position to take advantage of this.
But it does mean someone who does work, and can afford the after-credit price of the vehicle, but for whatever reason doesn't have enough tax liability end of year, still gets to get an EV instead of a gas car--- which was the entire point of passing the credit-- to encourage folks to choose EVs over gas cars.
To vastly simplify the EV car buying process the $7500 credit can be transferred to the dealer at time of purchase- letting you take $7500 off what the car "costs" the buyer right at time of sale-- rather than making them borrow the $7500 (or otherwise come up with it) until they later file taxes.
But ALSO-
You can't set up a situation where the dealer might later be on the hook to repay it because the taxpayers end-of-that-year-in-the-future tax situation changes- if you did no dealer would risk it and nobody would accept the credit transfer..
And you don't want to leave the taxpayer on the hook to potentially have some big tax bill because their own tax situation changes after buying the car based on the $7500 credit either.... because you don't want to harm someone who did the thing you incentivized them to do but then lost their job afterward-- or got a credit in January then got pregnant in February so by the time they file taxes they've got an extra kid deduction or something.
I mean, the buyer still has to come up with the REST of the money to buy the car (or have the ability to borrow that much money)-- so it's not like someone who only made $100 or didn't work at all is likely in any position to take advantage of this.
But it does mean someone who does work, and can afford the after-credit price of the vehicle, but for whatever reason doesn't have enough tax liability end of year, still gets to get an EV instead of a gas car--- which was the entire point of passing the credit-- to encourage folks to choose EVs over gas cars.
I feel like people keep using the word loophole wrong.
A loophole is an ambiguity or inadequacy in a system, such as a law or security, which can be used to circumvent or otherwise avoid the purpose, implied or explicitly stated, of the system.
The personal EV credit under the IRA allows the point of sale system-- using it, even if you lack the tax liability, is not a loophole- it's an intentional feature.
Leasing doesn't use that part of the tax code at all
Leasing using an entirely different part of the tax code--Under the IRA, leased electric vehicles are classified as "commercial vehicles,"-- and those intentionally do not have restrictions on income or US-sourcing of parts like the personal one does.
The IRA included both types of credits-- and included specific, different requirements and restrictions on each-- on purpose.
None of this is a loophole- it's the intent of the law as written.
The incoming administration has indicated they plan to get rid of it, so all of this might be changing in the near future--- but right now everything's working as designed.
Found a plethora around me, waited like 24-48hrs and went from like 30 to final 3 to last one between 3 dealers or so
Literally 1st major weekend of the new year with the promo and the id4 flew out the doors so much the dealers didn't want to negotiate on pros anymore cuz in beginning they were and now I'm hit with we have final 2 left, from like 30-50 earlier this week? Yup every VW dealer is advertising 149 or lower 129 or 99 even (just diff das)
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A loophole is an ambiguity or inadequacy in a system, such as a law or security, which can be used to circumvent or otherwise avoid the purpose, implied or explicitly stated, of the system.
The personal EV credit under the IRA allows the point of sale system-- using it, even if you lack the tax liability, is not a loophole- it's an intentional feature.
Leasing doesn't use that part of the tax code at all
Leasing using an entirely different part of the tax code--Under the IRA, leased electric vehicles are classified as "commercial vehicles,"-- and those intentionally do not have restrictions on income or US-sourcing of parts like the personal one does.
The IRA included both types of credits-- and included specific, different requirements and restrictions on each-- on purpose.
None of this is a loophole- it's the intent of the law as written.
The incoming administration has indicated they plan to get rid of it, so all of this might be changing in the near future--- but right now everything's working as designed.
Yes, commercial vehicles don't have the same restrictions on income and country of origin, etc.
Yes, leases are technically commercial vehicles because they are still owned by the lender.
But the intention of #1 wasn't meant to apply to #2. It was an oversight. One that will likely be closed soon.
Think about it -- why would they have passed a law to restrict the tax credit on EVs so heavily for purchases, but then intentionally left it open for leases? That makes no sense. In fact, there was even a big question and debate initially on whether leases could qualify the commercial tax credit, which was eventually decided 'yes'.
So commercial vehicles, owned and used by businesses, getting the $7500 wasn't the loophole. Everyone else, by leasing the car, was.
Found a plethora around me, waited like 24-48hrs and went from like 30 to final 3 to last one between 3 dealers or so
Literally 1st major weekend of the new year with the promo and the id4 flew out the doors so much the dealers didn't want to negotiate on pros anymore cuz in beginning they were and now I'm hit with we have final 2 left, from like 30-50 earlier this week? Yup every VW dealer is advertising 149 or lower 129 or 99 even (just diff das)
A loophole is an ambiguity or inadequacy in a system, such as a law or security, which can be used to circumvent or otherwise avoid the purpose, implied or explicitly stated, of the system.
The personal EV credit under the IRA allows the point of sale system-- using it, even if you lack the tax liability, is not a loophole- it's an intentional feature.
Leasing doesn't use that part of the tax code at all
Leasing using an entirely different part of the tax code--Under the IRA, leased electric vehicles are classified as "commercial vehicles,"-- and those intentionally do not have restrictions on income or US-sourcing of parts like the personal one does.
The IRA included both types of credits-- and included specific, different requirements and restrictions on each-- on purpose.
None of this is a loophole- it's the intent of the law as written.
The incoming administration has indicated they plan to get rid of it, so all of this might be changing in the near future--- but right now everything's working as designed.
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Standard trim, $1000 down, $149/month, 24 months, 10,000 miles/year.
I opted to bump it up to 12,000 miles/year for $165/month.
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