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Discussion Starter #1
So I was looking at the numbers on my Lease

I owe 14 k to purchase the car outright

If I pay it off by the end of the year...can I then get the 7500 Federal Tax credit

I still pay for the battery lease..but the car would be mine....

anybody have an idea on this....
 

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Nope, the Federal Tax credit was already used by Daimler when you leased it, that is why your payment is so low. You also cannot claim the tax credit on a used car (which is what you would be buying). You need to call a special number to get your real payoff, which includes the battery assurance package.

I would guess that your true payoff is about $4500 higher when you include the separate Battery Assurance contract.


Battery Assurance Plus customer inquiries should be directed to unique numbers:
Customer Service: 1.866.700.9853
Fax: 1.855.494.5091
Email: [email protected]
 

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Ditto!

If your lease company is Mercedes Benz Financial Services (mine is), you should make an account on financingfortwo.com. They provide a monthly updating payoff quote for your lease as well as your complete account history.
 

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If you qualify to lease the car, this is your best option. Buying does not make any sense at all. In my case for instance just the money that I spend on gas a month on my Toyota Corolla pays for the car lease and my car insurance.

Can someone in here crunch the numbers for buying & leasing options to see the difference and what is more convenient?
 

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hard to compare because term and credit and downpayment are unknowns.
On "emerging technology" cars there is really not many reasons to purchase the vehicle, especially with so many unknowns down the road. Even more so when the govt is giving you $10,000 in subsidies to do so, which wipes out 3/4 of your monthly payment.

For you guys who ALREADY have or have had a Mercedes (or Smart) there is now $750 in "loyalty" cash on 2013 Smart EV's.

You can realistically do a pre-paid lease, having just the $86/mo battery fee, for VERY little down and still get $2500 back from Kolifornia.
 

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If you qualify to lease the car, this is your best option. Buying does not make any sense at all. In my case for instance just the money that I spend on gas a month on my Toyota Corolla pays for the car lease and my car insurance.

Can someone in here crunch the numbers for buying & leasing options to see the difference and what is more convenient?
Wait, I'm missing the point, why is it so bad to buy the car?
 

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Because you have NO idea what this car will be worth in 3 or 4 years, because the whole "EV" thing is new. There might be new battery technology that makes our battery packs obsolete and the car might be worth next to nothing.

When you lease it, the depretiation is guaranteed to the penny, no losses on your part. If you still think it is worth that in 3 years, buy it then.

It won't be worth that amount by the way. It will be worth a whole lot less. Lease residuals are very optimistic, because it helps sell cars. It is rare to have a car worth the residual at the end of the lease.
 

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Discussion Starter #9
how have they used the federal tax credit when you cant claim it yet
next year I could claim it on my 2013 tax return...and its my car since i am on the registration as well
this is interesting if it can be done...I am also pissed at the loyalty rebate as it didnt apply to my purchase when i got mine..i even asked...
 

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how have they used the federal tax credit when you cant claim it yet
next year I could claim it on my 2013 tax return...and its my car since i am on the registration as well
this is interesting if it can be done...I am also pissed at the loyalty rebate as it didnt apply to my purchase when i got mine..i even asked...
The manufacturer gets the $7500 when you lease the car. End of story, they aren't giving it back to you. Actually, they did give it back to you in the selling price of the vehicle.



"The following requirements must also be met for a certified vehicle to qualify:
  • The original use of the vehicle commences with the taxpayer—it must be a new vehicle.
  • The vehicle is acquired for use or lease by the taxpayer, and not for resale. (The credit is only available to the original purchaser of a new, qualifying vehicle. If a qualifying vehicle is leased to a consumer, the leasing company may claim the credit.)
  • The vehicle is used mostly in the United States.
  • The vehicle must be placed in service by the taxpayer during or after the 2010 calendar year."
 

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Am I the only one around here that doesn't give a darn about depreciation? :)
 

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Wait, I'm missing the point, why is it so bad to buy the car?
I paid just under $20K all-in.
On average, I've driven my cars for 10 years before selling them.

Leasing for $139/mo (before taxes) or purchasing for $20K works out even for me after 10 years.

After 10 years, it favors the purchase, as I can continue to drive the car, as I own it.

Even if the Smart ED had 40km of range in 10 years (down from 120+km range today), that would be more than enough for the majority of my daily drive.

I bought this electric car so NO ONE could take it away from me. I've been waiting for this for so long, I thought I was going to have to build one myself!

Here I am driving a completely awesome electric car, I took it out in the 10cm of snow here in Toronto today, and it was such a pleasure to drive. I pick up my pizza now, instead of having it delivered because I look forward to driving the car so much...I'm hooked. I will never buy another car that runs on gas.
 

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Or, you could have leased one for 3 years and then made the decision whether or not you really wanted to own it for the next 7 years. Also (at least in the US) at that 3 year point you only had to pay sales tax on way less than half the car, so your cost of ownership was at least $800 or so less at that point than a guy who had purchased one.

People change their situations (or their minds) all the time about cars, and a lease lets you have a nice 2 or 3 year window of opportunity to see if this is really the right car you want to spend another few years with, or if it is a good time for a change of plans. Who knows what kind of cool EV's will be around in 3 years?

Trust me, no one is going to take a leased car away from you, unless you stop making payments on it.

But yeah, you are not alone in avoiding a lease; there are still a lot of folks who purchase, but those do not always turn out to be good investments. LOL, I should rephrase that, no car is ever a good investment, unless you are seeking a depreciating asset.

BTW this statement
"Leasing for $139/mo (before taxes) or purchasing for $20K works out even for me after 10 years." may or may not be accurate. During the 3 years of the lease, you have no maintenance that you have to pay for, and you are fully covered under warranty. Most likely will not even need tires or brakes.

The last 6 years of the 10-year plan, all repairs and obviously any maintenance is all on the owner. Not sure how to put a value on that, but it sure isn't zero.
 

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JimTesla, your lease "buyout" payments are higher than the $14k numbers you are claiming.

The other portion of your electric vehicle buyout will be the BATTERY, which has a residual of $5,010 years 1-5.

Don't forget about pages 3-8 about the battery. There is no battery buyout quote, but trust me, the battery will be an additional $5,010 on top of the residual on pages 1 and 2.
 

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Discussion Starter #19
I called MB regarding the buyout
a slight increase to include tax

the battery is leased..till the term is up....them I can decide to buy or continue the lease

MB may as it says use the credit if leased...but they cant till next year..they do not get it right away

I am going to look at it next week when I can get some more answers

if it said they get the 7500 flat out no if's ands our buts on a lease...but it does not say that its says they may......there is a hole...
 

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Nobody mentioned that the lease (at least the one I was offered) has a quite low 10000 mile/year limit, and then a very steep per mile surcharge (I forget the number).

When I did the math, the lease came out slightly more expensive than buying before hitting the 10000 miles. That's the "emerging technology insurance": You pay a bit more, to insure against the risk of dramatic depreciation.

But for those of us who drive 15000 miles or more, it's a terrible deal!
 
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