Question about lease and Incentive/Tax Credit

[Xarzi]

Hello everyone,

I have a 2024 MME Rally that should be arriving between October to November. I had been looking at the options and was debating leasing the car. But I had a couple questions. I have never leased before and have always paid outright cash or down like 50% down and done a loan for the rest. Only really did loans to get credit history to buy a house.

I understand ford has their Red Carpet Lease incentive (Currently a total of 9,600) which my dealer already told me I could get the available incentives when I ordered. Luckily I know 3 of the sales man at this dealership so I'm not worried about them going back on that.

But what I don't understand is the Federal Tax Incentive loophole. Is that already included in the Red Carpet Lease pricing? Or, should I be able to get the RCL + the federal tax incentive on the car. I understand that they are not required to pass it on. But if I can argue for them to do it, I would very much like to do so. As that's my main goal of the lease is to try to get a better price overall than I would be doing a loan.

If anyone has recommendations on anything I should read about how to determine if I'm getting a good lease deal or what sorta residual, or MSRP I should target. I would appreciate it.

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[AKgrampy]

I am fairly certain the RCL incentives on an 24 MY include the tax incentive available due to the lease. I have never leased but that appears to be a fairly good incentive.

 

[phil]

But what I don't understand is the Federal Tax Incentive loophole. Is that already included in the Red Carpet Lease pricing?

Yes, it is. Ford already knew it was getting the federal tax credit when they offered $9,600. There's no additional $7,500 for them to keep or to give to you.

 

[AlMelbourneFL]

It’s my understanding that the Mach E is assembled in Mexico and the battery is manufactured outside the US, so there’s no tax break for a purchase. Ford, as you noted, is offering an incentive for a lease.

This site is a good reference.

https://www.ford.com/finance/payment-calculator

After selecting your model, the page opens showing the price to purchase. Make sure that you select the Lease icon in order to see an estimated cost for the lease.

 

[Lynnvsavage]

Yes, it is. Ford already knew it was getting the federal tax credit when they offered $9,600. There's no additional $7,500 for them to keep or to give to you.

There is no federal incentive anymore fir MME

 

[AKgrampy]

There is no federal incentive anymore fir MME

There is on a lease.

 

[RickMachE]

It’s my understanding that the Mach E is assembled in Mexico and the battery is manufactured outside the US, so there’s no tax break for a purchase. Ford, as you noted, is offering an incentive for a lease.

This site is a good reference.

https://www.ford.com/finance/payment-calculator

After selecting your model, the page opens showing the price to purchase. Make sure that you select the Lease icon in order to see an estimated cost for the lease.

There is the full 7,500 tax credit on the lease, which Ford gets. It is passed on in the lease pricing.

There is no federal incentive anymore fir MME

On leasing there is.

 

[Lynnvsavage]

There is on a lease.

The Ford Mustang Mach-E is completely disqualified for now. Also of note: No Rivian electric truck or SUV qualifies for the full $7,500 tax credit amount in 2024, at this time. The credit amount on these models has fallen to $3,750

 

[Lamont Cranston]

The Ford Mustang Mach-E is completely disqualified for now. Also of note: No Rivian electric truck or SUV qualifies for the full $7,500 tax credit amount in 2024, at this time. The credit amount on these models has fallen to $3,750

There are still quite a few new 2023 Mach-E vehicles on dealer lots. These qualify for the full $7,500.00 credit on leases. I just received a very attractive lease quote from a local dealer, but unfortunately they only have a few Select models and about ten or so Route 1 models; I would prefer a Premium.

 

[phil]

The Ford Mustang Mach-E is completely disqualified for now. Also of note: No Rivian electric truck or SUV qualifies for the full $7,500 tax credit amount in 2024, at this time. The credit amount on these models has fallen to $3,750

You are not understanding. The tax law for leases is different, and the electric Mustang does indeed qualify for a $7,500 federal tax credit to the lessor (not to the lessee).

 

[RickMachE]

The Ford Mustang Mach-E is completely disqualified for now. Also of note: No Rivian electric truck or SUV qualifies for the full $7,500 tax credit amount in 2024, at this time. The credit amount on these models has fallen to $3,750

NOT FOR LEASING. Credit doesn't go to consumer. Manufacturer gets credit, and passes it on via discount on lease price.

https://www.irs.gov/credits-deductions/commercial-clean-vehicle-credit

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