TFLEV leases a Fiat EV for $47/month!?

[AZjeff]

The TFL YouTube brand now has sub-channels covering everything, almost annoying. One of the boys just leased a new Fiat 500e for $900 down and $47/month for 2 years. How is this even possible? Not a fan of the tiny Fiat but what a great local errand runner.

 

[BobsArmory]

Hard to say no at that price as long as insurance isn't way out of line

 

[Torrid]

They've had an EV channel for years now. I originally found out about them with their truck and towing challenges. These small EVs always have really cheap deals and Colorado gets an additional credit that makes them even cheaper. There was a similar one for the Nissan Leaf and I believe it's now up to $89.

The problem with them is most of these small cars do not fast charge on DC chargers and the range is massively limited since they can only fit so much battery. It's a part of the market I wish could get more range and fast charging. For that reason they have a lot smaller fan base than the longer range cars.

 

[AZjeff]

TFLEV found me for some reason, didn't realize it existed. If correct that lease is costing him $84.50/month plus insurance. There are a lot of people spending more than that a month keeping something running that don't need long range that could be driving a new car if they could qualify.

 

[alarmguy]

Very cool story for a local puddle jumper. Thing is I cant find any price near what he says. $179 a month for 42 months. $3000 down at lease signing and all that also includes that they assume you are eligible for the $7,500 tax credit as its factored into the price I posted.
Im actually shocked at the high prices shown on the website.

https://www.fiatusa.com/shopping-tools/incentives.fiat_500e.2024#/model/CUX202404

 

[Torrid]

Very cool story for a local puddle jumper. Thing is I cant find any price near what he says. $179 a month for 42 months. $3000 down at lease signing and all that also includes that they assume you are eligible for the $7,500 tax credit as its factored into the price I posted.
Im actually shocked at the high prices shown on the website.

https://www.fiatusa.com/shopping-tools/incentives.fiat_500e.2024#/model/CUX202404

You'd have to be in Colorado to get to the number they advertise.

 

[alarmguy]

You'd have to be in Colorado to get to the number they advertise.

I just put Aurora Colorado ZIP Code in. I guess it’s a good deal because the government tax break and $1100 and change from the lease’e the dealer is getting $8700 upfront plus tax, title and tags. This one is a longer lease but $39 a month with the government break seems like a good deal I guess. as long as you don’t go over 5000 miles a year then it’s $.30 extra per mile

 

[2strokeNorthstar]

Very cool story for a local puddle jumper. Thing is I cant find any price near what he says. $179 a month for 42 months. $3000 down at lease signing and all that also includes that they assume you are eligible for the $7,500 tax credit as its factored into the price I posted.
Im actually shocked at the high prices shown on the website.

https://www.fiatusa.com/shopping-tools/incentives.fiat_500e.2024#/model/CUX202404

Same here. We don't get the CO bonus

 

[Finklejag]

How are people getting the $7500 tax credit if the 500e is made in Italy?

 

[Torrid]

How are people getting the $7500 tax credit if the 500e is made in Italy?

To be honest I don't know if that's how the credit is coming about. I don't think the Colorado credit has that stipulation, though there has to be some credit layering to get to this really low price.

Sure shows it having the Federal credit. Interesting.

 

[2strokeNorthstar]

How are people getting the $7500 tax credit if the 500e is made in Italy?

Probably won't last after mid January....

 

[Torrid]

Probably won't last after mid January....

I think he's referring to the parts content if it's not US built, which I don't believe that it is.

 

[2strokeNorthstar]

I think he's referring to the parts content if it's not US built, which I don't believe that it is.

I am too. Rumor has it American tax dollars wont be used to support foreign built cars soon.

 

[Torrid]

I am too. Rumor has it American tax dollars wont be used to support foreign built cars soon.

They’re already not supposed to qualify. That’s why the Model 3 Standard Range didn’t have the credit. The origin of the battery materials disqualified it.

 

[Rmay635703]

How are people getting the $7500 tax credit if the 500e is made in Italy?

People aren’t
Business loans, leases and rent don’t follow the same rules to get the credit.

.gov hates people but love giving breaks to business

 

[alarmguy]

How are people getting the $7500 tax credit if the 500e is made in Italy?

@Torrid

The rules do not apply to leased vehicles. Leased vehicles are considered commercial vehicles and the dealer gets the rebate not the person leasing the vehicle. After all the person leasing the car does not own it. The dealer owns the vehicle and can then pass the savings on to the person leasing IF THEY WISH to lower the price. The dealer does not have to pass on the savings. The dealer is the one who owns the car. Being it is a commercial vehicle the domestic parts requirement does not pertain to getting the $7,500.

The EV tax credit 'loophole' for leasing​

That’s where the so-called “EV lease loophole” comes in. Under the IRA, leased electric vehicles are classified as "commercial vehicles," making them eligible for the full federal clean vehicle credit without meeting strict battery and sourcing requirements.

What does this mean if you want to lease an EV? You could have a wider selection of electric vehicles to save money if the dealer agrees to pass the tax credit savings on to you. However, remember that the dealer receives the tax credit (not you). So, any savings you receive would be in the form of a rebate or reduced lease price. (And some dealers won't pass on the credit savings.)

Source https://www.kiplinger.com/taxes/ev-lease-tax-credit-loophole

 

[Gary_E]

@alarmguy good info, just want to add the dealer does not own the vehicle…the manufacture does. Not trying to nit pick here. Some dealers never own their inventory, it’s on loan from the manufacturer too.

 

[Torrid]

@Torrid

The rules do not apply to leased vehicles. Leased vehicles are considered commercial vehicles and the dealer gets the rebate not the person leasing the vehicle. After all the person leasing the car does not own it. The dealer owns the vehicle and can then pass the savings on to the person leasing IF THEY WISH to lower the price. The dealer does not have to pass on the savings. The dealer is the one who owns the car. Being it is a commercial vehicle the domestic parts requirement does not pertain to getting the $7,500.

The EV tax credit 'loophole' for leasing​

That’s where the so-called “EV lease loophole” comes in. Under the IRA, leased electric vehicles are classified as "commercial vehicles," making them eligible for the full federal clean vehicle credit without meeting strict battery and sourcing requirements.

What does this mean if you want to lease an EV? You could have a wider selection of electric vehicles to save money if the dealer agrees to pass the tax credit savings on to you. However, remember that the dealer receives the tax credit (not you). So, any savings you receive would be in the form of a rebate or reduced lease price. (And some dealers won't pass on the credit savings.)

Source https://www.kiplinger.com/taxes/ev-lease-tax-credit-loophole

Was not aware of that. Interesting. It never came up in my shopping process since Teslas can’t be leased in the state of Wisconsin and I wasn’t really considering that if it was an option.

I knew there was some lease stuff that made the credit easier, but I didn’t know it got around the parts content.

 

[alarmguy]

@alarmguy good info, just want to add the dealer does not own the vehicle…the manufacture does. Not trying to nit pick here. Some dealers never own their inventory, it’s on loan from the manufacturer too.

Good points
But I believe the leasing company or finance company owns the car.
I’m certainly not a specialist but a finance company can be the manufacturers finance company or an independent finance/leasing company who actually claims ownership and collects the $7,500 as a commercial vehicle and USA parts content doesn’t matter.

Interesting point you brought up and why the lease deal in Colorado as it is the local finance company offering the low priced deal not the manufacturer or dealership.

I’m no expert for sure but like to learn!
One thing for sure the owner of the Fiat in Colorado is the leasing company getting the rebate as only the owner can.

I don’t think but can be wrong that Fiat is not in this case the finance/leasing company. I saw something to that effect but didn’t pay much attention, at the time I was just pointing out that leased cars are a commercial vehicle and whoever is supplying the lease (leasing company as owner) gets the $7,500 not the person leasing.

Who is the Legal Owner of a Leased Car?​

Because car leasing is essentially like a long-term rent, you don't own the car. The leasing company does.
Source https://www.leaseloco.com/guides/leasing-with-leaseloco/who-is-the-registered-keeper-of-a-leased-car

I believe the Colorado lease ad states the deal is provided by the leasing company and disclosed the name of the company

What I have learned is I should not have said the dealer gets the rebate you are correct but ownership of the car belongs to whoever is the leasing company and that doesn’t have to be the manufacturers leasing company.
Interesting twist for sure ! I like this stuff, not debating you, good post.

(And now I have to get back to sleep, Happy Thanksgiving!)

 

[alarmguy]

…

I knew there was some lease stuff that made the credit easier, but I didn’t know it got around the parts content.

Either did I until I started reading up on the lease rebate from the Colorado ad! Then searching further. Interesting stuff