Hyundai maintains IONIQ 5 EV tax credit on leases
Hyundai has decided to reserve a $ 7,500 federal tax credit on the 2022 IONIQ 5 when consumers choose to lease rather than buy. Although the purchase of the new electric vehicle already offers a financing incentive and connection discounts, our analysis reveals that the IONIQ 5 presents a significant disadvantage when it is leased.
For starters, the IONIQ 5 2022 does not offer rental cash to buyers, a fact that may not come as a surprise given that it is a brand new model. Normally, electric car makers pass some or all of the federal electric vehicle tax credit to renters as an incentive from the manufacturer called leasing. As a result, the IONIQ 5 might be a bad vehicle to hire.
We came across this information while reviewing a national rental newsletter the company sent out to dealers this week. Hyundai spokesperson Miles Johnson confirmed our findings today, adding, âThere are other ways to support a rental program and we have chosen not to support our rental in cash at this time.
Like most electric vehicles, Hyundai says the IONIQ 5 qualifies for a federal tax credit of up to $ 7,500, an incentive that consumers may be entitled to when they buy rather than lease. So where exactly is the money going on the leases? It remains unclear, but it certainly does not go to consumers who expect to get a deal on an EV lease.
To put that in perspective, the Volkswagen ID.4 is offering a lease rebate of $ 7,500. In the case of Hyundai’s Ioniq EV sedan, Hyundai Motor Finance (HMF) is offering savings of up to $ 12,500. We don’t even see an introductory rental price on the IONIQ 5 and the advance rental rates equate to around 3.3% APR.
The residual values ââof the IONIQ 5 are nothing to write home about, with a 36-month residual of between 47% and 49% depending on the base. While EVs can offer great rental deals and offer some of the biggest discounts right now, the IONIQ 5 could present questionable value for those looking to rent rather than buy their next EV.
Is Hyundai taking a page from Ford? After all, consumers are clamoring for the new Mustang Mach-E even though Ford Credit keeps the tax credit to itself on rentals. If you’re looking to spend as little money as possible on the new IONIQ 5, it might be a good idea to avoid renting one, at least for now.
In addition to regional incentives like the California Clean Vehicle Rebate, Hyundai is already offering an APR deal on the IONIQ 5. While you can’t find a 0% finance deal yet, qualified buyers will find finance rates this low. than 1.9. %, with financing options available for auto loans up to 6 years.
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