[Voltorb]

(I'm new to the forum and couldn't find a clear explanation through my research, so apologies if this is asked frequently.)

I just recently leased a 2014 Volt and was curious about the Tax credit. (Btw I reside in NC) I understand that the leasing company may claim the credit when the tax form 8936 is filed for a lease. I'm just curious as to how this works when the leasing company claims the credit. Does it go towards the tax cost of the vehicle and benefit the purchaser directly?

Appreciate any clarification.

 

[jamtracy1]

The leasing company gets the tax credit. You get the state rebate if your state has one.

 

[DonC]

Yup, the leasing company gets the credit since it is buying the car from the dealer. In most cases the leasing company adds the credit to your residual which cuts the payments. You get the benefit but don't have to file for the credit.

 

[Paulacton84]

(I'm new to the forum ..
I just recently leased a 2014 Volt and was curious ...

welcome to the forum Voltorb, others have answered your tax credit question. My advice for new Volt owners can be found in this post. enjoy your new ride!
http://gm-volt.com/forum/showthread...Crystal-Red-Volt-Owner!&p=1595858#post1595858

 

[gr8reb8]

Most leasing companies that the competitive dealers use will apply a portion of that credit to the residual value and therefore get you a lower lease payment. I have seen some though that do not and grab the whole amount as profit.

 

[llninja]

Most leasing companies that the competitive dealers use will apply a portion of that credit to the residual value and therefore get you a lower lease payment. I have seen some though that do not and grab the whole amount as profit.

To pound this in further with a sledgehammer, you have no idea how much they've discounted because of the credit and how much is pure profit for the leasing company. One bank will say you get everything, but then they get you somewhere else. The only way to truly get the full tax credit is to buy the car and qualify for it. I sound like a borked record, but I've never seen a lease that I liked.

 

[chucko]

(I'm new to the forum and couldn't find a clear explanation through my research, so apologies if this is asked frequently.)

I just recently leased a 2014 Volt and was curious about the Tax credit. (Btw I reside in NC) I understand that the leasing company may claim the credit when the tax form 8936 is filed for a lease. I'm just curious as to how this works when the leasing company claims the credit. Does it go towards the tax cost of the vehicle and benefit the purchaser directly?

Appreciate any clarification.

I too have a similar question. My local dealer (not the sales rep, but one of the managers that been there for a long while) tells me that on a Volt lease with Ally the end user of the vehicle (me) would get to claim the tax credit. I questioned him repeatedly about this with the sales person present and he assured me that this was the case.

Does anyone know for sure what is the real and true story in this situation?

 

[llninja]

I too have a similar question. My local dealer (not the sales rep, but one of the managers that been there for a long while) tells me that on a Volt lease with Ally the end user of the vehicle (me) would get to claim the tax credit. I questioned him repeatedly about this with the sales person present and he assured me that this was the case.

Does anyone know for sure what is the real and true story in this situation?

LIE. If you are leasing a car you cannot claim the tax credit, period. If the salesman is telling you that you can claim the credit leasing, run away and find another dealership for your business. Both leasing companies claim the credit, one shows you paperwork applying the $7500 to the cost of the car, but make it up with other fees, while the other (Ally) doesn't show you their numbers. Bottom line if you want the full tax credit, you need to buy (and qualify).

 

[harley03]

I sound like a borked record, but I've never seen a lease that I liked.

I wholeheartedly agree. Lease=Fleece. But people lap it up. And now the tv commercials only quote monthly lease payments because they know buyers are only focused on 'monthly payment'. Shaking my head.

 

[tripowergto]

C'mon guys, go easy on the lease people. My lease is only $145/mo for 36/mos with nothing out of pocket down. My total cost of ownership for 3 years is only $5220(less then your depreciation) and I'll save more in gas making it a virtually FREE car. Like many here, I could not realize the full $7500 tax credit in an outright purchase but could use it in full upfront in a lease. Different situations call for different decision making. Sometimes leasing is the CORRECT decision. I own all my other cars, including the new Stingray I'm picking up later this week.

 

[chucko]

LIE. If you are leasing a car you cannot claim the tax credit, period. If the salesman is telling you that you can claim the credit leasing, run away and find another dealership for your business. Both leasing companies claim the credit, one shows you paperwork applying the $7500 to the cost of the car, but make it up with other fees, while the other (Ally) doesn't show you their numbers. Bottom line if you want the full tax credit, you need to buy (and qualify).

It's been an interesting couple of days with this question.

I'm getting conflicting info from everywhere. Internet says one thing, Dealer say another, GM Financial /ALLY says another.

 

[llninja]

It's been an interesting couple of days with this question.

I'm getting conflicting info from everywhere. Internet says one thing, Dealer say another, GM Financial /ALLY says another.

I read your longer response that came through the email notification before you edited your long dissertation to a much shorter one. Boy if it turns out to be true that ally doesn't claim the credit and leasors can, there are going to be many upset (or happy) volt leasors out there

 

[llninja]

Kind of a related question, the other volt owner in my office was told by his dealership that these really special low lease deals that he got in on was so that GM could get some real world diagnostics on cars in areas where people don't live in an urban area and drive more miles. He's hoping he can extend the lease, but suspects they want to take the car back and tear it apart to see how it fared. Any truth to this, or was he just getting fed a line by the dealership to make the sale?

 

[jamtracy1]

Can I claim the New Plug-in Tax Credit if I lease a qualified vehicle?

The Plug-in Tax Credit can only be claimed by purchasers of a new qualified vehicle who use the vehicle primarily in the U.S. If you lease a car at a dealership the leasing company can claim the credit since it is considered to be the purchaser of the vehicle.

This is right out of the FAQ's

 

[chucko]

Can I claim the New Plug-in Tax Credit if I lease a qualified vehicle?

The Plug-in Tax Credit can only be claimed by purchasers of a new qualified vehicle who use the vehicle primarily in the U.S. If you lease a car at a dealership the leasing company can claim the credit since it is considered to be the purchaser of the vehicle.

This is right out of the FAQ's

What FAQ is this? You mean the FAQ on this site?

How about this instead:

http://fueleconomy.gov/feg/taxphevb.shtml

and if you look under the requirements tab at the bottom of the page you find this info:

The following requirements must also be met for a certified vehicle to qualify:
•The original use of the vehicle commences with the taxpayer—it must be a new vehicle.
• The vehicle is acquired for use or lease by the taxpayer, and not for resale. (The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.)
•The vehicle is used mostly in the United States.
•The vehicle must be placed in service by the taxpayer during or after the 2010 calendar year.

This seems to indicate that not all leasing companies will claim the credit, and that it is possible for the tax credit to be claimed by the end user of a lease.

However, all of this is moot if GM Financial/Ally claims the tax credit.

What I absolutely cannot believe is that I can't seem to get a straight answer to what is in effect a very simple question. GM Financial customer service reps not only don't want to talk with you if you don't have an account with them, but once you get through to someone who will talk to you they are not able to provide any meaningful information at all.

GM Financial/Ally , the dealerships, and General Motors should be should be ashamed of themselves for making such a mess of this. They are all simply motivated by greed and their ability to take advantage of the uninformed.

Any goodwill that GM might be gaining by building and selling the Volt is completely lost by the time someone actually gets through the purchase process.

My recommendation to anyone considering leasing a Volt. Don't do it. Don't buy one either. It's simply not worth it. No automobile on the planet is worth this much hassle.

 

[llninja]

What FAQ is this? You mean the FAQ on this site?

How about this instead:

http://fueleconomy.gov/feg/taxphevb.shtml

and if you look under the requirements tab at the bottom of the page you find this info:

The following requirements must also be met for a certified vehicle to qualify:
•The original use of the vehicle commences with the taxpayer—it must be a new vehicle.
• The vehicle is acquired for use or lease by the taxpayer, and not for resale. (The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.)
•The vehicle is used mostly in the United States.
•The vehicle must be placed in service by the taxpayer during or after the 2010 calendar year.

This seems to indicate that not all leasing companies will claim the credit, and that it is possible for the tax credit to be claimed by the end user of a lease.

However, all of this is moot if GM Financial/Ally claims the tax credit.

What I absolutely cannot believe is that I can't seem to get a straight answer to what is in effect a very simple question. GM Financial customer service reps not only don't want to talk with you if you don't have an account with them, but once you get through to someone who will talk to you they are not able to provide any meaningful information at all.

GM Financial/Ally , the dealerships, and General Motors should be should be ashamed of themselves for making such a mess of this. They are all simply motivated by greed and their ability to take advantage of the uninformed.

Any goodwill that GM might be gaining by building and selling the Volt is completely lost by the time someone actually gets through the purchase process.

My recommendation to anyone considering leasing a Volt. Don't do it. Don't buy one either. It's simply not worth it. No automobile on the planet is worth this much hassle.

You are reading too much into the word of "the leasing company may claim the credit". Nowhere does it say if they don't the leasor could. Nowhere. So Ally can claim the credit. They are a finance company with a free $7500 available to them. Why would they not claim it? Not claiming it would just be stupid. They are already taking a bath trying to sell lease returns after GM dropped the 2014s by $5K. I don't see any way Ally doesn't claim $7500 per volt leased.

 

[jamtracy1]

Nah I found it on a different site's FAQ's. And DON'T BUY OR LEASE ONE!!! Who cares? I had no hassle leasing my Volt probably along with thousands of other people. I was told by the dealer that Ally will claim the vehicle credit. I knew this and still leased it. But like someone else said not only the 5K drop in price but have you seen what people say their residual is on their Volt at Lease end and what people are buying used Volts for???? Huge difference.....