2023 Taycan $7500 Tax Credit with Lease vs No tax Credit purchase.

[SandraTodd]

Congrats on your upcoming Taycan 4S! That's super exciting. As for the tax credit situation, I understand the confusion. Leasing can be a smart move to take advantage of the tax credit, but it ultimately depends on your financial situation and goals.
Leasing does come with some extra expenses, like mileage limits and wear and tear fees, but it can also provide lower monthly payments and the ability to upgrade to a newer model sooner. Refinancing the lease into a purchase can be a good option to take advantage of the tax credit and still own the car in the end. You can get some help from https://Brianscrabs.cm if you need a credit car or any other papers. They are ready to help.

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[Redhot2474]

Establish the Money Factor and Residual. Without these factors you can’t determine what’s best.

 

[lwc1001]

i was told i'll still be $5k ahead if i lease for 4 months then switch to purchase.

 

[whitex]

i was told i'll still be $5k ahead if i lease for 4 months then switch to purchase.

Assuming the only lease specific incentive is $7,500 federal incentive, $5K ahead after 4 months sounds suspicious. That implies it only costs you $625 a month in all costs, which mans cap cost under $60K, which which seems low for a Taycan. Do the math yourself to confirm.

If you have the cash for the whole thing already, it's different than if you have to refinance the balance in 4 months. The sale price of the car, max down payment, lease interest rate, sales tax, and any leasing fees will be important factors. If you don't feel like doing the math, simply ask the dealer for complete monthly payment information + payoff after 4 months and compare that against cash purchase (for both scenarios, don't forget taxes, registration, lease initiation and termination fees, transfer fees to remove the leasing company from the title). Also consider what if things get delayed a month or two (each month is ~$1,000+tx in extra cost on each $100K borrowed) - that's your risk too. When I did this for my Taycan, it was not worth it at all - my best case scenario was breaking even, but it was unlikely.

 

[Wonky Donkey]

. Also consider what if things get delayed a month or two (each month is ~$1,000+tx in extra cost on each $100K borrowed) - that's your risk too. When I did this for my Taycan, it was not worth it at all - my best case scenario was breaking even, but it was unlikely.

what would possibly delay the payoff? You mean personal/life issues or will PFS delay you?
Did you attempt to buyout a lease early? Is there a prepayment penalty?
Asking because I’m looking to do the same.

 

[whitex]

what would possibly delay the payoff? You mean personal/life issues or will PFS delay you?
Did you attempt to buyout a lease early? Is there a prepayment penalty?
Asking because I’m looking to do the same.

I terminated a lease early once (it happened to be Porsche), but it was long time ago. At that time, it went through US Bank and there was no penalty for early buyout, but thing may be different now, hence my suggestion to check. By delay I mean how long things take from the time you want to terminate - in this post pandemic world I've seen things sometimes take longer than expected to process. Ideally it's all automated, electronic transfers, and it "just works".

 

[Payton48]

I bought out my lease after 1 payment and ended up saving ~$6500 after all fees. The only delay to keep in mind if you're going to do this is that PFS has to receive title from your state before it can complete the buyout and transfer title to you. There's an extra form I had to fill out for CA DMV to get late fees waived for the title transfer, and the delay means that I'm just now able to apply for HOV stickers (~5mos after starting the process).

 

[trogger]

I’m thinking of doing the same when I pick up my car, looking like next week (lease and then pay off after one payment). I assume Porsche is still passing on the 7500 saving?

@Payton48 how much of a pain was it? Any tricky parts besides what you mentioned? Did the dealer care?

I am also wondering about putting a giant payment down on the lease upfront, to reduce the lease-financed amount. Appreciate any tips here (although I understand the finance math fine).

 

[trogger]

what would possibly delay the payoff? You mean personal/life issues or will PFS delay you?
Did you attempt to buyout a lease early? Is there a prepayment penalty?
Asking because I’m looking to do the same.

Did you end up doing this, @Wonky Donkey (hee haw)? If so, how did it go?

 

[Payton48]

@Payton48 how much of a pain was it? Any tricky parts besides what you mentioned? Did the dealer care?

I am also wondering about putting a giant payment down on the lease upfront, to reduce the lease-financed amount. Appreciate any tips here (although I understand the finance math fine).

Other than the wait for title, it was painless. My dealer didn't really care, I was pretty upfront about my plans. But I paid MSRP and was on the fence since my '22 wasn't ready for delivery until '23. When Porsche offered the rebate at the beginning of the year, that made me pull the trigger and the dealer was probably just happy to get the deal done.

 

[Wonky Donkey]

Did you end up doing this, @Wonky Donkey (hee haw)? If so, how did it go?

Yes, I did. However I’m still in the process as I sent in the final buyout just 4 days ago.
The payoff estimate is good for another 11 days, so in theory they should refund me the difference.
Preliminary numbers are that it saved me ~$5600. Could be more but probably not less.
The things that effect the net savings: PFS charged a financing fee of $1095. Then you pay “interest “ for every day that you are leasing the car. It takes a little while for the paperwork to reach PFS, so I don’t know how fast they can even generate a buyout quote. I waited about 10 business days,
and didn’t have an issue.
LMK if I can answer any other questions but keep in mind I’m not 100% done with the process.
Hee-Haw indeed!

 

[trogger]

I decided I will probably not to do the lease, after all—in Texas you have to pay the full sales tax on lease begin, and then again if you do a buyout. If I buy it out quickly, the taxable value will be nearly the full amount, a second time. PFS offers tax credits, but they weren’t total, and then they charge 1% for that. Also seems like in Texas, you have to buy out through a dealer, not direct from PFS. They charge for that too. So by the time all the fees are paid and monkeyed about, most of the $7,500 benefit is gone and it seems like a giant, complicated exercise.

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