IRS Tax Credit misinformation?

forte88,

Even if the leasing company claims the federal tax credit, the individual can still be the beneficiary. Many people do NOT have enough tax liability (students) to claim the full tax credit but they can get a better lease package because of the tax credit incentive.

 

Exactly. I fought for better lease deal because TFS was getting the $2,500 tax credit. Some dealers will say yes, some won't. Wouldn't have made my deal unless they "compensated" me for loss of credit. In fact, I started walking out when they said "wait a minute, we can do better". Might have even got them down to $275/mo but I was tired by that point.

 

Have to do some research, all the best deals are giving you the tax credit in your monthly price. buyatoyota.com has in some regions: $249 per month for 24 months with $2,799 due at lease signing. Or get the $4000 off if you buy out east.

 

My starting point was $259/mo for 36 mo with $2,499 down AND $4,000 cash off. In fact, first month is included in $2,499 so not even that much down really. Only have 35 months left at OTD $285. With tax it came to $277.13 and they then included all their fees and GAP insurance to bring it to $285. Sweet!

 

But realize they did "force me up" to $3,000 down which is really $2,715 seeing as first month of $285 is in there. The posted "$2,499 down" seems to just be a starting point for them. But who knows, as it gets closer to 2013 time they might make even better deals to get rid of remaining 2012 PIPs. For me, I was quite pleased with what I got.

 

They would have pocketed at least $2,500 of mine if I had signed their original offer. I walked out and then they suddenly "found extra savings".

 

And they never came out and said it was in "lieu of the Fed Tax Credit 2500.00".
They just mysteriously "found" the extra savings that in my mind made up the difference.
And this was after already getting the $4,000 cash off.
No way I could pass that up.

 

You didn't do anything wrong and approached it as most consumers would. If the Toyota dealership told you that you qualified for the Federal Tax Rebate, you should sue them in small claims court, minimal cost and time, for the up to $7500. Worst case you make them come to court and lie under oath and you pay court costs if you lose. Best case, the sales manager and salesmen get a bit leery of committing perjury and conspiracy and the dealership coughs up the $7,500(?) they owe you.

Also wouldn't hurt to write to your local and Federal representatives to get the law changed. The entire point is encourage CONSUMERS to get and drive high mileage cars. Many people lease so under current law, there is no incentive to lease a high mileage car.

 

And my "dealer" said the same thing. Luckily I was sure they were wrong and refused to sign original deal. Then again, this all took place three days ago so I had lots of info to go on. I had started trying to make a deal end of August when TFS was offering $3,500 back. I was only willing to pay $2,499 like ad said. They laughed me out of the dealership back in August. When 11/6/12 came around and TFS sweetened the cash to $4,000 I convinced my wife that if dealer would take extra $500 off I would go up $500 and meet in middle at $3,000 down. Spent many hours Saturday haggling with salesman/finance guy. They insisted my numbers didn't add up and I could get additional $2,500 from IRS next tax return. Only after they read IRS document did they finally agree it wasn't so. Don't know if they were truly ignorant or just wanted to squeeze out as much as they could. I can't be the first PIP lease they've ever done, that's for sure.

 

I would think that if the dealer specifically told you that you were eligible for the credit as a lessee, and you used that information in your decision to sign the lease, then one would have have recourse under consumer protection laws under fraud provisions. Generally, businesses will hedge their position in such matters by advising you that they cannot provide tax/legal advise and you should consult the appropriate professional for definitive information. And, as pointed out, your beef is with the dealership making false statements, not Toyota or Toyota Finance, since the dealership is an independent company.

But I am not a lawyer, so I cannot provide legal advice.

 

You are totally mixing up the dealership, the leasing bank and the manufacturers. When leasing, the leasing bank owns the car, not the leasee, so they get the federal tax credit. They can pass along none, some or all of that credit to the leasee if they wish. The leasing banks will usually tell the dealerships what offers they will give, but from there, the dealership doesnt always present the best offer to the leasee. The dealership will try to rip off the customer as much as possible because they can pocket the difference. When the manufacturers offer rebates on the vehicles, its not in lieu of the federal credit. It has nothing to do with that. It's just that the cars aren't moving, so they increase their rebates to make the deals more attractive to potential buyers/lessees.

 

Agree completely. First and foremost, it sounds like clearly deceptive practice by the dealership. They have no excuse for giving out wrong information or Federal, State or local tax credits on their vehicles and it is reasonable to expect them to be knowledgeable and correct on the topic. I think the small claims will get you your money from them and some media generated bad PR for Toyota and the dealership.

Be good to see Congress act also. Good thing to have written to your Congressman.

 

I haven't had a chance to look over all the stuff that's there yet, but when you lease, you are not the purchaser. There are many references to purchase/purchased in there. The leasing company owns the car when you lease.

 

I used to work at a Nissan dealership and they advertised the Tax Credit on hybrid Altima's on lease and when someone researched that it was only to the owner, he made the dealership take it back. If something is grossly misrepresented, you should have a case.

 

Unfortunately, this law doesn't help you. See section 1. You purchased your car after December 31, 2011.