I've been trying to figure out how the leasing works for in Ontario with the Tax credit. From what I've read, the tax credit is applied to the residual value of the car by the leasing company and the tax credit is essentially applied to lowering your monthly payments across the length of the term. Is that correct? An example is car is $60,000 with a residual value of $29,000 after a 3 year term (based on .48% residual value). Normally the lessee would be on the hook for $31,000 + interest over the course of the lease but with this tax credit of $14,000 the residual value is bumped up to $43,000.00 Therefore the lessee would be on the hook for only $17,000? Essentially the $14,000 lowers the monthly payments by $389 monthly for the a 3 year lease? (14,000 / 36 months) MSRP = $60,000 Minus Residual =29,000 Minus Tax Credit = 14,000 Balance owed = 17,000 (over length of term). This is all without a down payment (not that i'd put much done since i'm leasing. No point..better off getting Gap insurance).