I requested a call back from US Bank regarding their lease option and also submitted an application a week ago and still never heard back from them. How long do they take to work on my application or call me back?
So the 7500 does not count as a cap reduction? IOW if the car is 100k and the residual is 50% then at the end of 3 years your residual is 50k. Normally your depreciated value is 50k plus interest.
OTOH with the 7500 rebate, does the financial institution not use the 7500 as a credit towards cap cost reduction? So 100k -7.5k = 92.5k. Residual is 50% of 100k = 50k residual value.
So your lease should be based on 92.5k cap cost minus 50k residual = 47.5k depreciated value plus interest divided by 36 months.
It is absolutely not right that they are keeping the $7,500 and not applying it as a Cap Reduction (as they should).
I completely agree with @dennycrane888 in that they should apply the $7,500 as a Cap Reduction. If the bank files for that rebate and keeps the rebate for the car themselves, without applying it to the value of the car, IMHO that is extremely underhanded and unfair to the person leasing the car. The purpose of the rebate is to reduce the value of the car -- not line the pockets of a bank looking to take advantage of the situation.
With how the leases are currently structured, they are essentially taking away the rebate from the car and putting it in their pocket and most reasonable people will consider that to be somewhat dodgy.
So basically the bank is giving out a ~ $50K loan at a nice interest rate for 3 years and they are pocketing an extra $7,500 rebate for each such transaction. That's quite a nice racket the bank has going on there...
Yeah, right!!! Where you been for the last two years? No, seriously though. That was funny. And there's a Model 3 section on the forum. This is not it.
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OTOH with the 7500 rebate, does the financial institution not use the 7500 as a credit towards cap cost reduction? So 100k -7.5k = 92.5k. Residual is 50% of 100k = 50k residual value.
So your lease should be based on 92.5k cap cost minus 50k residual = 47.5k depreciated value plus interest divided by 36 months.
That's the way it should work in theory.
I completely agree with @dennycrane888 in that they should apply the $7,500 as a Cap Reduction. If the bank files for that rebate and keeps the rebate for the car themselves, without applying it to the value of the car, IMHO that is extremely underhanded and unfair to the person leasing the car. The purpose of the rebate is to reduce the value of the car -- not line the pockets of a bank looking to take advantage of the situation.
With how the leases are currently structured, they are essentially taking away the rebate from the car and putting it in their pocket and most reasonable people will consider that to be somewhat dodgy.
So basically the bank is giving out a ~ $50K loan at a nice interest rate for 3 years and they are pocketing an extra $7,500 rebate for each such transaction. That's quite a nice racket the bank has going on there...