Loophole in the EV Credit - Lease it!

[whitex]

I ran a 39/10k $0 Down (just inception fees due) lease for a $190k MSRP Taycan Turbo (right at MRM) using a calculator. Buy-Rate is 0.0034; I did 0.0038 to account for a slight mark-up (max a dealer could do right now is 0.0042, so 80 basis points). You multiply the decimal by 2,400 to convert it to an APR.

Monthly Payment with 9.5% LA tax is $3,784--$1,037 of which is interest/rent charge. So, you're right: 3 months of that + Acq Fee, and you're right around $4k in costs, so $3k-ish in savings. Probably not worth the effort.

If someone is purchasing a RWD/CT4 or even a 4S/GTS, it could be worth taking advantage of the loophole, depending on how much energy you have. I ran a similar lease structure for a $140k MSRP Taycan 4S, and ~$700 of the monthly payment was rent charge.

I think you underestimated the interest/rent charge. Interest amount you pay every month varies every month as you pay off your cap cost (the interest on the residual stays constant). Most calculators just use the average interest/rent charge, but that only holds true if you pay your lease all the way to the end. If you terminate early, they calculate actual interest to give you the payout amount. A quick calculation given the numbers you provided, the first 3 months of interest + 9.5% tax would be:
Month 1: $1519
Month 2: $1501
Month 3: $1482

(the above is essentially interest [2*MF] on 190K - $7.5K rebate - what you paid off to date, then add 9.5% tax)

That's ~$4500 in just interest and taxes on that interest in 3 months. Add $1200 inception fees + 9.5% tax on those, and this lease exercise is costing you $5,816 in order to save $7,500. One extra payment and you about break even. Then you risk the clawback if the current administration gets their way.

Now, if you could put $189,960 down, make the residual $1, then it would be worth while, but I doubt they would let you do this. I have done one lease once with $0 down but a $150 residual (the lowest the finance computer system accepted), which confused the crap out of the finance manager at first, but after we ran the numbers he realized that it was way worth it (the lease had a subsidized interest rate, so 39 lease payments + $150 buyout was way cheaper than 39 loan payments). When I tried doing it again few years later, it was no longer allowed - finance instituted maximum down and minimum residual for leases.

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[SergeyIndy]

If your Turbo MSRP is $200k, then you're definitely above MRM, so leasing would be entirely unfavorable. I'd stick to your original purchase method.

I'm very jealous As much as we love our CT4, part of me wants to build a $200k Frozen Blue / Atacama Beige Turbo Sedan! Lol

I was tempted to get something intermediate to enjoy the Taycan sooner but kept pushing it forward by moving up trim levels and options, so this is how I ended up with all in build at that price point. I have been pushing it a bit too far since when I decided to place the order for MY23 in May of 2022, I had no allocation until Jan 5 of 2023 and even then this was a trade from another dealer so all indications were that I would not get an allocation until much later if at all for the Turbo.

I have seen a Frozen Blue Turbo driving through town (north of Indianapolis) with New Mexico blue license plate matching Frozen Blue, perfectly tinted, lowered, with perfect looking paint, and I was following it as long as I could as it was like an alien landed and driving through town, stunning!

 

[rjdoc74]

Such great points raised by everyone.

Porsche lease sucks. Such a rip off unless you can write off payments for business.

If you want for this purchase to make financial sense and you own a business- CT is the only way to go . Section 179 is your friend. Forget the measly tax credit .

 

[new2porsche]

My GTS ST arrives soon and was wondering if there's any good lease deals that anyone is aware of? or tricks tips that anyone has who has leased recently.

Thanks in advance

 

[ssim]

My GTS ST arrives soon and was wondering if there's any good lease deals that anyone is aware of? or tricks tips that anyone has who has leased recently.

Thanks in advance

A lease is just math. It's about plugging in different variables, so it's all relative to things like MSRP, discount, whether you're above MRM, etc.

Only tip is to lease it with the buy-rate money factor. Dealers can mark up the rate, but it's smart to ask them not to, especially if you're paying MSRP. You'll also get the $7,500 rebate if you lease.

 

[amelen]

Does anyone know if they are keeping the $7,500 lease "loophole" for 2024?

 

[Jonathan S.]

They?
The IRS, yes, Congress hasn’t changed that.
Whether Porsche continues a lease discount with a promotional tie in to the tax credit that the financial services subsidiary receives, that can change on a whim at any moment.

 

[amelen]

They?
The IRS, yes, Congress hasn’t changed that.
Whether Porsche continues a lease discount with a promotional tie in to the tax credit that the financial services subsidiary receives, that can change on a whim at any moment.

Yup. That's what I meant. Seems like the guidance from Porsche (to dealers) is that it's being continued for 2024 (for now).

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