goldbrick said:
I'm feeling especially dense today :| Could someone explain to me why lease prices jumped up due to this? Toyota has exceeded 200k EV's so the existing rebate was set to be phased out for them anyway. Ditto for Tesla I guess. I'm sure it's simple but I can't understand why this makes such a difference. Are they thinking the demand will go up?
Toyota phaseout (where it gets cut to 1/2, 1/4 then 0) wasn't going to start until 10/1/2022 w/it first being half: https://web.archive.org/web/20220726050624/https://www.fueleconomy.gov/feg/taxevb.shtml but given some of the below, if you didn't already have a binding contract to purchase before Biden signed or took delivery before then, you are subjected to new rules, so suddenly all Toyota became ineligible because none of their EVs/PHEVs are assembled in North America.
https://electrek.co/2022/08/07/senate-improves-ev-tax-credit-in-largest-climate-bill-ever/ (search it for signs)
https://electrek.co/2022/08/13/if-you-want-an-ev-buy-this-week-rivian-fisker-ev-tax-credits/ - search for Toyota
https://www.greencarreports.com/news/1136859_irs-2022-ev-phev-tax-credit-american-made
Tax credit has been 0 on Teslas for awhile now and AFAIK, they weren't passing it along in the form of a cheaper lease even when their tax credit was above 0.
In the past, if you leased, the automaker/its leasing company received the tax credit. They could choose to pass along 0 to the entire tax credit to the lessee in the form of a cheaper lease. When I leased my 1st Leaf, NMAC passed along all $7500 + a bit more. So, it looked likea a $7500 down payment was made on my behalf.
For the '22 Niro EV I'm leasing, Kia Financial also passed that along + a bunch more. It looked like about $11K was already paid for me the day I picked up my car.
HyunKia have also hit 0 because their BEVs and PHEVs aren't assembled in the US. Imagine if my total cost of lease went up by $7500?
This has affected a ton of other makes and models.
https://www.fueleconomy.gov/feg/taxevb.shtml says:
If you purchase and take possession of a qualifying electric vehicle after August 16, 2022 and before January 1, 2023, final assembly of the vehicle had to be completed in North America, otherwise the same rules in effect prior to the enactment of the Inflation Reduction Act apply (including those involving the manufacturing caps on vehicles sold).
The Department of Energy has provided a list of Model Year 2022 and early Model Year 2023 electric vehicles that may meet the final assembly requirement. Because some models are built in multiple locations, there may be vehicles on the list that do not meet the final assembly requirement in all circumstances.
The list is at https://afdc.energy.gov/laws/inflation-reduction-act. Notice TONS of PHEVs and EVs are missing from it? https://www.greencarreports.com/news/1136839_tax-credit-unlikely-to-return-for-these-evs-and-plug-in-hybrids may help.
Basically, if you didn't already have a binding purchase agreement or take delivery prior to Aug 16 (which, the IRS decided to put up on Aug 16, the day Biden signed: https://www.irs.gov/credits-deductions/individuals/plug-in-electric-drive-vehicle-credit-section-30d), the new rules apply (e.g. where assembled, income cap, etc.)
I haven't kept up with most of this either since I'm not in the market, it's been messy and I'm disqualified from the purchase side anyway due to income caps. Not sure how leases (for those above income cap) are handled for vehicles that otherwise qualify.