Is there a way to lease the F150L with a 3rd-party bank to capture the $7500 tax credit and then buy it out?

[pc500]

Is there a way to lease the F150L with a 3rd-party bank to capture the $7500 tax credit and then buy it out?

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[ChrisC]

I think it is possible if you get a commercial lease. I am not sure if you need a federal business number or a state EIN number is enough. I mentioned this to my dealership and they are looking into it. Unfortunately, @Ford Motor Company Red Carpet lease or the balloon lease Ford Options that is available on the EVs doesn't credit the $7500 like other 3rd party leasing agencies do, even though CEO Farley mentioned it last year when he rolled out the price increase all models. I am sure they are taking the credit for themselves and not passing it onto the consumer

 

[metroshot]

Ask: US Bank, Ally, Satander and your local CUs.

Some leasing banks do kick back the $7500 under IRS 45W but beware that the MF and RV may be inflated to hide that cap cost reduction.

 

[pc500]

Ask: US Bank, Ally, Satander and your local CUs.

Some leasing banks do kick back the $7500 under IRS 45W but beware that the MF and RV may be inflated to hide that cap cost reduction.

You're right, there's probably no easy way to lease and quickly buy out to get the $7500.

 

[metroshot]

You're right, there's probably no easy way to lease and quickly buy out to get the $7500.

Ford Options is the best way to capture the $7500 and Options incentive ($1000) then buy out.
But you will pay sales tax up front on this balloon finance.

 

[pc500]

Ford Options is the best way to capture the $7500 and Options incentive ($1000) then buy out.
But you will pay sales tax up front on this balloon finance.

I didn't think Ford options gave you the credit back and they kept it for themselves. Are those incentives valid?

 

[metroshot]

I didn't think Ford options gave you the credit back and they kept it for themselves. Are those incentives valid?

Sorry, I thought this was the MME forum.

For Lightning, the Options rate is the standard rate that Ford uses (last time I checked, it's around 7%).
There is no cash incentive.

What you do get by using Ford Options, is the $7500 tax credit which you can claim on your federal return as it's balloon financing and you are the owner.

You can claim the $7500 on your taxes if you have tax liability for the year.

 

[pc500]

I thought it went to the leaseholder and they had to kick it back. I will ask.

 

[metroshot]

I thought it went to the leaseholder and they had to kick it back. I will ask.

If you lease, the bank keeps the money (Ford Red Carpet lease).

If you use balloon financing (Ford Options), your own financing, or buy cash; you are the owner and you get the credit.

Remember, if you buy in 2023, you can't claim the credit until 2024.

 

[pc500]

If you lease, the bank keeps the money (Ford Red Carpet lease).

If you use balloon financing (Ford Options), your own financing, or buy cash; you are the owner and you get the credit.

Remember, if you buy in 2023, you can't claim the credit until 2024.

Can you find any evidence this applies under 45w?

Here it looks like options has the customer as the owner, and ford options looks like a traditional loan.

What's also not clear to me is if you can pay for options early.

https://www.ford.com/finance/finance-options/ford-options/

 

[shutterbug]

What's also not clear to me is if you can pay for options early.

You can, but then might as well just pay cash. There is no difference. You're still limited to $80K price and $150K AGI.

 

[pc500]

You can, but then might as well just pay cash. There is no difference. You're still limited to $80K price and $150K AGI.

That's the problem I'm trying to solve. Leases under 45w are exempt.

 

[shutterbug]

That's the problem I'm trying to solve. Leases under 45w are exempt.

Ford Options is not a lease, and will not solve that problem.

 

[voxel]

Ford Options is not a lease, and will not solve that problem.

This.

Ford Options is useless for those who exceed the $150K/300K MAGI limits.

Ally, US Bank, etc. need to step in and provide leases with cap reduction pass throughs. Slap on high fees so when the lease is bought out they can still profit a little.

 

[metroshot]

This.

Ford Options is useless for those who exceed the $150K/300K MAGI limits.

Ally, US Bank, etc. need to step in and provide leases with cap reduction pass throughs. Slap on high fees so when the lease is bought out they can still profit a little.

Good point about income caps under 30D.

As for 45W commercial leases and "giving back" the tax credit as a cap cost reduction, remember how sneaky Hyundai changed their lease numbers when they started to "give back" the credit ?

Hyundai's Ioniq 5 lease increased MF from .00252 to .00321 and reduced RV from 55% to 49%.

That's very sneaky how you end up paying more and the leasing bank makes back the "$7500 cap cost reduction"

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