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New $5,000 Rebate in New Jersey

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Moderator
Nov 28, 2018
12,428
14,804
Riverside Co. CA
Does anyone know how the new $ 5,000 EV rebate in New Jersey would affect lease prices? Would the full $ 5,000 go towards a downpayment? (If anyone has a lease in other states with rebates please let me know your experience).

No one will know this... those kind of benefits go to the owner, and in a lease you dont own it, the leasing company does. Its up to them to pass some, none or all of it on.

Depends on how much they want to incentivize leasing vs owning. The previous rebates did not go directly on the lease agreement from what people who got leases showed in their contracts. It was more "indirect" because the residual values on the leases were like 69-70% which is very high, even for tesla.

They might choose to do it, or not. If I was in NJ i would definitely buy, and take that money.. and then sell in 3 years if I didnt want it anymore (and this is said as someone who is familiar with leasing, and has leased several BMWs but chose to buy my model 3).
 

Sparch

New Member
Aug 15, 2018
3
0
New York
No one will know this... those kind of benefits go to the owner, and in a lease you dont own it, the leasing company does. Its up to them to pass some, none or all of it on.

Depends on how much they want to incentivize leasing vs owning. The previous rebates did not go directly on the lease agreement from what people who got leases showed in their contracts. It was more "indirect" because the residual values on the leases were like 69-70% which is very high, even for tesla.

They might choose to do it, or not. If I was in NJ i would definitely buy, and take that money.. and then sell in 3 years if I didnt want it anymore (and this is said as someone who is familiar with leasing, and has leased several BMWs but chose to buy my model 3).

Thank you -- that's very helpful.
 

dmurphy

Active Member
Supporting Member
Dec 7, 2018
4,040
5,746
New Jersey - Morris County
I would also make sure the rebate was active before I purchased there, of course. Thats a LOT of "free" (taxpayer paid) money, and I would want to ensure I got it, lol.

BINGO - the NJ BPU (Board of Public Utilities) is saying they'll have the program up and running for July ... Now, whether that's retroactive to when the law went into effect (Jan 20th) or not, who the heck knows. Still very early days for the whole program. Me, personally, I'll wait until they announce how it's going to work.

It might (possibly, maybe) push me to get a Model Y this year. If it weren't for the FSD package, I'm basically at breakeven selling my Model 3 LR AWD right now. I'm seeing them in the $45-$46k range right now. I only paid $49k for mine (excluding FSD), but got the $3750 tax credit.

Sell that, buy a Model Y, use the tax credit to offset the FSD loss... Bob's your uncle. Depending on what the production-ready Y looks like... it's a strong possibility. My wife isn't even giving me the "doesn't it make sense to just keep what we have?" speech.... that tells me she misses the crossover form factor.
 

Fresnel

Member
Nov 27, 2019
384
179
USA
BINGO - the NJ BPU (Board of Public Utilities) is saying they'll have the program up and running for July ... Now, whether that's retroactive to when the law went into effect (Jan 20th) or not, who the heck knows. Still very early days for the whole program. Me, personally, I'll wait until they announce how it's going to work.

It might (possibly, maybe) push me to get a Model Y this year. If it weren't for the FSD package, I'm basically at breakeven selling my Model 3 LR AWD right now. I'm seeing them in the $45-$46k range right now. I only paid $49k for mine (excluding FSD), but got the $3750 tax credit.

Sell that, buy a Model Y, use the tax credit to offset the FSD loss... Bob's your uncle. Depending on what the production-ready Y looks like... it's a strong possibility. My wife isn't even giving me the "doesn't it make sense to just keep what we have?" speech.... that tells me she misses the crossover form factor.

Fingers crosse on it being retroactive. I refuse to give up hope.

Your math look good to me. I'd say go for it! I know the "doesn't it make sense to just keep what we have?" speech well.
 
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jjrandorin

Moderator, Model 3, Tesla Energy Forums
Moderator
Nov 28, 2018
12,428
14,804
Riverside Co. CA
BINGO - the NJ BPU (Board of Public Utilities) is saying they'll have the program up and running for July ... Now, whether that's retroactive to when the law went into effect (Jan 20th) or not, who the heck knows. Still very early days for the whole program. Me, personally, I'll wait until they announce how it's going to work.

It might (possibly, maybe) push me to get a Model Y this year. If it weren't for the FSD package, I'm basically at breakeven selling my Model 3 LR AWD right now. I'm seeing them in the $45-$46k range right now. I only paid $49k for mine (excluding FSD), but got the $3750 tax credit.

Sell that, buy a Model Y, use the tax credit to offset the FSD loss... Bob's your uncle. Depending on what the production-ready Y looks like... it's a strong possibility. My wife isn't even giving me the "doesn't it make sense to just keep what we have?" speech.... that tells me she misses the crossover form factor.

I see a new model Y (for your wife, not you) and you in the newly repaired buick, in your future :p
 
No one will know this... those kind of benefits go to the owner, and in a lease you dont own it, the leasing company does. Its up to them to pass some, none or all of it on.

Depends on how much they want to incentivize leasing vs owning. The previous rebates did not go directly on the lease agreement from what people who got leases showed in their contracts. It was more "indirect" because the residual values on the leases were like 69-70% which is very high, even for tesla.

They might choose to do it, or not. If I was in NJ i would definitely buy, and take that money.. and then sell in 3 years if I didnt want it anymore (and this is said as someone who is familiar with leasing, and has leased several BMWs but chose to buy my model 3).

If one were to buy then sell in 3 years, then why not lease instead? Because when you sell, in addition to the depreciation of those 3 years, you'll also not recoup the sales tax. With a lease, the monthly payment is usually less, and you only pay for tax and depreciation of the 3 years only.
 

jjrandorin

Moderator, Model 3, Tesla Energy Forums
Moderator
Nov 28, 2018
12,428
14,804
Riverside Co. CA
If one were to buy then sell in 3 years, then why not lease instead? Because when you sell, in addition to the depreciation of those 3 years, you'll also not recoup the sales tax. With a lease, the monthly payment is usually less, and you only pay for tax and depreciation of the 3 years only.

Because in this case, there could be a 5K difference. I am not saying I would do this "in general".. I am speaking specifically to the New Jersey situation of a 5k credit. Those type of credits always go to the owner, and when you lease you dont own it. The leasing compay (whoever they are) does. As I said, they "can" choose to share none, some, or all of it, but nothing compels them to do so other than market forces.

On the model 3 leases currently tesla inflates the residual to a higher number but doesnt (didnt) call out any of the credit in the paperwork. In that specific case, 5k Is enough to buy it and then sell in 3 years (which is normally a very bad thing to do in general with cars, but in this specific case would likely work out.)
 

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