Leases

@william-simpson Do you have a link to the article?

@seancallahan Sean it was on Yahoo Finance or CNBC ( stock market CNBC) it had a title like Loophole in the 7500 (the name of it) what ever that is called in Leases

Ok Sean.  Its

https://www.Bloomberg.com>articles  

A tax loophole 

Make EV leasing a no brainer in the USA

im not good on computers but hope that helps find it 

Nebraska Bill

@william-simpson Here is one that I found on CNBC. 

https://www.cnbc.com/2023/04/10/7500-new-ev-tax-credit-workarounds-to-irs-rules.html

Sean that’s not the one I read. But sent the link to Bloomburger. Not sure why FSR is not pushing that or maybe they will in USA. 

@william-simpson Fisker DOES NOT offer a lease buy out so the loophole is invalid for anyone interested in Fisker.  I know how it works, lease a car, take the 7500 tax credit (it is up to 7500 and dependent on your taxes paid, if you only paid $2000 in taxes, you would only get $2000 credit) and buy it out at the end of the lease, this way you can reap the benefits of getting the credit.  Someone else also stated that if paying in cash, it is possible to do a lease, get the credit and then just buyout the lease and car the next month.  While I don't know how that really works because I thought you signed a contract, they claimed to have found a way out.

Still, in the end you can only lease from Fisker and not do a buyout so keep this in mind for those planning to take advantage going this route.  Read and reread the contract, ask questions clearly and get answers in writing.

@mymopar Another lease company can buy the car. Lease it to you with different buy out options you do not have to lease from Fisker. Do you ?????

@mymopar You do not get the credit the leasing company does and a lot are passing it thru to the lease to you but it has nothing to do with your taxes

Posted by: @william-simpson

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@mymopar You do not get the credit the leasing company does and a lot are passing it thru to the lease to you but it has nothing to do with your taxes

You are correct, I forgot the lease loophole allows the full claim of the credit by the leasing company, so it is an advantage to take the full credit while leasing.

Posted by: @william-simpson

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@mymopar Another lease company can buy the car. Lease it to you with different buy out options you do not have to lease from Fisker. Do you ?????

Now this is a good question also, if a leasing company can buy an Ocean then it does make 100% sense, you'll get the credit off the lease then buy out at the end, I don't know much about leasing but I was under the impression that the auto mfg itself set up the deal with it's own affiliate and not a third party the consumer located.  Still need to be cautious going the lease route with the idea to buy out at the end with the balloon payment.

The most common car lease is set up by the manufacturer, however, there are plenty of third party companies that offer leasing (most of these are B2B and not to consumers).  For consumers, direct leasing from the manufacturer has been the most common as the manufacturers are willing to guarantee the residual rates allowing the bank to offer higher residual rates resulting in lower lease rates (many times the manufacturer will also subsidies the interest rate to lower the lease cost further).  To date, Fisker has only discussed the Flexee Lease program which is more akin to a subscription model than a traditional lease.  With the $7,500 credit available for leases, I can see Fisker ultimately introducing a traditional lease, however, it will be some time before they are in a financial position where they can offer leasing.

@ttrinchi thanks all I did was read an article and tell Sean as it might be a way to get the 7500 as they qualify but most people ordered because they want the Ocean it will be a year and a half before they catch up at least then when they start selling to the open market things will be different and FSR will have 70,000 cars on the road.

With the tax credit only valid through leasing, I am sure Fisker will find a ways to accommodate potential Fisker owners on this to increase their sale and gain market shares.  Think about it, what it will cost Fisker to get Fisker owners their $7500 tax credit, what the benefit it will be for Fisker.  When putting those 2 against each other, if Fisker doesn't take advantage of this, they mind as well fold the company.

If I run the lease department in Fisker, I will be offering the following for potential owners:

1) Multiple lease options

2) With at least one option that would fully take advantage of the loophole in $7500 lease and also $4000 used EV tax credit.

  - i.e.  Lease option on the $70k Extreme for those with cash!

  - Lease for $xxxx or however long the lessee wants within Fisker's limit(I don't recall seeing anywhere that says that there must be a duration on the lease for the $7500 tax credit)

  - After 2 years of leases and the lessee already paid at least $45k, with option to buy the used vehicle for $25k or less within 30 days after return of the leased vehicle. (Now the former lessee, can be the buyer of the used EV for up to $4000 tax credit).  Fisker will even remind the lessee of the gross income threshold for the tax credit.

I see no reason for Fisker not to take advantage of this.

@fibrepunk you are putting a lot of faith in a company that has a less than stellar (adequate?) track record of something as simple as customer communications…

@seancallahan here is the link that William is mentioning as an FYI  (sorry I only have the Apple News link).

A Tax Loophole Makes EV Leasing a No-Brainer in the US
An exemption in the Inflation Reduction Act is worth $7,500 to drivers who lease.

Read in Bloomberg Businessweek:  https://apple.news/Agj0QEOEQQka_6e144sllNg