24 Mo. Lease NOT ELIGIBLE for CA Rebate

For anyone interested in leasing a Leaf in the state of California, any lease term below 36 months is NOT ELIGIBLE to receive the CA state rebate of $2,500. The Clean Vehicle Rebate Project (CVRP) requires a lease term or ownership of the vehicle to last at least 36 consecutive months within the state of California. This means that the vehicle must be owned, operated, and registered with the CA DMV for three years after purchase or lease. You may apply for the state rebate immediately after taking possession of the vehicle, but the lease term for the vehicle must be at least 36 months to apply for the CVRP.

Please visit http://www.energycenter.org/cvrp to find out more information about the state rebate program, the application process, and eligibility requirements. I would also be happy to answer any program questions by private message or reply to this thread.

Thank you!

Amy Willis
Program Assistant
Clean Vehicle Rebate Project
[email protected]

What if you lease for 24-months, but then buy the vehicle out at the end of the lease?

And what if you don't? I don't think it's fair to expect them to account for all kinds of what-if scenarios...

kubel said:

What if you lease for 24-months, but then buy the vehicle out at the end of the lease?

Click to expand...

To be helpful but potentially inaccurate... I want to say that I remember reading that this would be considered a used vehicle and not eligible for the State Credit.

kubel said:

What if you lease for 24-months, but then buy the vehicle out at the end of the lease?

Click to expand...

It doesn't matter because they won't process the rebate without either a 36 mo (or more) lease agreement or a purchase agreement in the first place.

kubel said:

What if you lease for 24-months, but then buy the vehicle out at the end of the lease?

Click to expand...

This is a great question. While there are countless vehicle purchase/lease scenarios, the focus of the CVRP in California is a straightforward application process that yields real environmental benefits. The California Air Resources Board has determined that owning and operating a clean vehicle for three years results in enough air quality benefits to justify their substantial investment (~$15 million for last fiscal year's project).

A lease term of 36 months or greater demonstrates a commitment to keep that vehicle for three years, therefore making it possible to realize the air quality benefits that the state is looking to achieve. While a 24 month lease of a clean vehicle is a step in the right direction, and possibly the best financial option for the individual, it doesn't demonstrate the intent to keep the vehicle for a long enough time to make ARB's investment worthwhile, and thus is not eligible for the state rebate.

Of course, unforeseen circumstances do happen and the program accounts for the fact that not everyone will be able to keep their vehicle in the state for 3 years (change of career, etc.). In these cases, rebate recipients are asked to return a pro-rated portion of their rebate which is returned to general program funds to be used for more rebates. This is not what the program is designed for, and it incurs a significant increase in administrative costs for each individual case.

Please feel free to post or contact me directly with any other questions!

davewill said:

kubel said:

What if you lease for 24-months, but then buy the vehicle out at the end of the lease?

Click to expand...

It doesn't matter because they won't process the rebate without either a 36 mo (or more) lease agreement or a purchase agreement in the first place.

Click to expand...

That is correct!

What about a straight purchase? Do we have to keep the car all three years? What happens if we sell early at 2 years?

theaveng said:

What about a straight purchase? Do we have to keep the car all three years? What happens if we sell early at 2 years?

Click to expand...

Did you read two posts up?

"Of course, unforeseen circumstances do happen and the program accounts for the fact that not everyone will be able to keep their vehicle in the state for 3 years (change of career, etc.). In these cases, rebate recipients are asked to return a pro-rated portion of their rebate which is returned to general program funds to be used for more rebates. This is not what the program is designed for, and it incurs a significant increase in administrative costs for each individual case."

aswillis said:

not everyone will be able to keep their vehicle in the state for 3 years (change of career, etc.). In these cases, rebate recipients are asked to return a pro-rated portion of their rebate

Click to expand...

"Asked" or forced to return the rebate?

theaveng said:

aswillis said:

not everyone will be able to keep their vehicle in the state for 3 years (change of career, etc.). In these cases, rebate recipients are asked to return a pro-rated portion of their rebate

Click to expand...

"Asked" or forced to return the rebate?

Click to expand...

You are asked, not forced, to report your income and expenses honestly each year to the IRS and FTB. If you choose to be a scofflaw you might be able to get away with it. However, I wouldn't think it would be wise to ever again try to register a vehicle in the state. And it's always possible they might flag DMV records in other states.

Ray

If you're punished, then you're "forced" to return the rebate. Just as I am forced to buy hospital insurance else I'll be punished with a ~$1000 penalty on my return.

theaveng said:

If you're punished, then you're "forced" to return the rebate. Just as I am forced to buy hospital insurance else I'll be punished with a ~$1000 penalty on my return.

Click to expand...

Depending of course on how much you make.

Yeah I know. It's why I said approximately 1000 dollars. (~$1000) The tilde symbol means approximately.

theaveng said:

Yeah I know. It's why I said approximately 1000 dollars. (~$1000) The tilde symbol means approximately.

Click to expand...

I know what the tilde means.

Right, but there is no penalty if you make below a certain amount. I don't remember the numbers...

If you are a small business owner you aren't required to have insurance, legally. Also, if you have under a certain amount of employees you aren't required to give them insurance either, but as long as they make the aforementioned forgotten monetary amount they are still required to get insurance. Loving this new medical system. *Sarcasm* Much cheaper and absolutely more fair.