AaronTV
Well-Known Member
For a trade in data point. I traded in a Bronco two weeks ago. Rivian's offer was on a couple hundred dollars less than Carvana. Accepting that was easily worth it for the tax savings.
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Eric9610
Well-Known Member
its about $3-$4.5k due at signing with $0 down. I assume you are moving to California. Registration is about $1k also you pay about $1k in tax on the $7500 credit. these are not listed on the online calculator.
Syrarch04
Active Member
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Does everyone get charged a $1k tax on the EV credit, or is that just in CA? I hadn’t heard this before (I’m not in CA)…
jjswan33
Well-Known Member
It is state dependent but not just California. I know in Washington for example you pay tax every month on your lease payments, so if you get a $7500 tax credit to reduce your lease payments this is also taxable.
Governments want their tax revenue, if you buy a vehicle with a tax credit you still pay tax on the whole cost of the vehicle before the credit so no difference here.
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jjswan33
Well-Known Member
Bummer. I encountered this late last year.
I live in Oregon, as you know has no tax. I wanted to lease a Genesis EV but there is no dealer in Oregon so I contacted the dealer in Seattle. They could lease to me and I wouldn't have had to pay the tax on my monthly payments since I live in Oregon but since I was buying in Washington I would have had to pay tax on the EV tax credit.
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Vegeta
Active Member
- Thread starter
- #22
Would it even be worth it for me then? So basically the $7500 is financed back into my monthly payments? The main reason why I’m wanting to do this is to cut out fuel costs or cut down on them. I figure I’d be paying $400 or so per month in fuel with my raptor,
jjswan33
Well-Known Member
I can't tell you if it's worth it for you or not. Let me try to paint you an example:
You want to lease a Rivian that costs $80,000
The car has a residual value of $50,000
So you have a total of $30,000 in capitalized costs, you are buying something that costs $30,000. You have to pay tax on that purchase. The EV tax credit reduces that by $7500 on day one so you have to pay tax on that at day 1.
Don't quote me on the specifics but I believe WA rate is 6.5% so you will have to pay ~$500 tax on that $7500 credit at pickup.
Robertccribb
Member
I live in Wisconsin. We are not able to lease a Rivian at this time. I have a $100 reservation for the R2. I have a few questions on the whole process that maybe someone can help me with.
- I was told that there must be a service center or dealership in the state if you want to lease an EV. Can anyone confirm that?
- The tax credit is that per owner/per car/per purchase? In other words if I purchased/leased an EV today I get the $7500. If I purchased/leased an EV next year do I get that again? What if I am the primary and my wife becomes the primary on the next purchase does that matter?
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Morrow_19
Member
Run a good calculator on fuel cost vs your charging rate. the EV is not free to charge but it can be significantly cheaper than fuel at $5 per gal. Combine that with the oil changes etc on a raptor and you may come out slightly ahead with the EV monthly BUT... you are still spending a lot more in the long run to buy a NEW EV vs your already owned Raptor.
You should consider the long term impact of this move too. At the end of the lease you have a healthy buy out to purchase the R1T OR you would walk away with nothing and spent -$700-800 per month in the process. If this is just to save $400 in gas then it would not be worth it (assuming you dont have a payment on the raptor).
All that said.... the R1T is a pretty impressive truck. If it saves you in fuel AND gives you a better vehicle to drive then you may be making the right move. I would love to hear your feedback after you purchase an R1T. I love the raptors but made a similar move to jump into my first EV (moved from a Full Size Diesel that I didnt need anymore). R1T is smaller, more fun and efficient. Win Win Win
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Vegeta
Active Member
- Thread starter
- #27
I still owe on it. But I have done a small amount of research and most have said that to charge my truck at home it would be less than $100 a month so it would be a huge savings and I’m sure the monthly payment would also be less than my raptor. I’m wondering if the buyout process is worth it though. I am a huge fan of the R1T, got to drive one here in Austin during the r2 event!!!!!
Morrow_19
Member
I was hooked after I did a demo drive. My Ram 3500HD felt 100 yrs old haha. The ram is FANTASTIC for towing but I dont tow anything that heavy anymore so I made the switch..
For charging... You may want to check your electricity rates and Time of use rates. The cost will likely still be very low but the charging rates will have an impact on how much your total cost will be each month. For example. My home rate during off peak hours is $.33kwh but from 4pm-9pm it almost doubles. At my office (where I plan to do most of my charging) my off peak is only $.11kwh so the cost to charge at the office is the cheapest by far. I also have a peak time that would more than double that cost so having awareness around charge times is important if you are looking to maximize your savings
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