"The programs will operate under each automaker's financing arm, according to documents viewed by Reuters and interviews with dealers briefed on the plan. It basically works like this: Ford and GM will buy EVs from its own dealers by having their finance divisions put down payments on all the electric models in their inventory before the tax credit expires. The dealers will then lease the vehicles to customers with a $7,500 discount baked into the price."
"EV sales spiked in July and August as shoppers rushed to claim the credit before it expired on September 30th. "Ford is working to provide Ford electric vehicle shoppers with competitive lease payments on retail leases through Ford Credit until December 31st," Dan Barbossa, a spokesperson for the company, said in an email. (A spokesperson for GM did not immediately respond to a request for comment.)"
Ford and GM plan short-term programs through their finance arms to preserve the $7,500 EV tax credit for leased vehicles. The finance divisions will put down payments on electric models in dealer inventory, effectively making automakers the purchaser, and dealers will lease the vehicles to customers with a $7,500 discount included in the price. The programs were reviewed with IRS officials, and IRS rules required vehicle purchases by September 30 to qualify for the credit. EV sales spiked in July and August as shoppers rushed to claim the credit. The automakers face financial risk on unsold inventory and potential uncertainty about extending discounts.
Read at The Verge
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