Leased EVs Create Tax Loophole, VinFast VF8 Under Microscope In Initial Drives

Being categorized as “commercial” business, leases on EVs get tax credits, and VinFast has some bugs to fix on their VF8.

News about EVs and tax credit loopholes seemingly never end these days. The most recent one could have big legal and sales implications, however. In a report from CNBC, many EV buyers are discovering that leasing an EV versus buying will get you a tax credit, regardless of the car’s eligibility.

This is a thrill to automakers and consumers alike. Lower prices are a huge advantage for consumers, and automakers that have plants outside of the US no longer need to set aside huge capital for US production to qualify. Lawmakers are not quite as pleased. Despite being the creators of these new EV tax credit rules, they didn’t think loopholes would be found. The loophole essentially categorizes a lease as a commercial action, rather than a consumer one. In their example, CNBC states a 36 month lease on a $50,000 EV would be a tick over $200 cheaper per month.

If the rules stay the same, it would open up a slew of EV makers to saturate the US market. If the rules see an adjustment to make leasing and buying on equal ground, you’ll see some very interesting shifts in the EV market soon enough.

VinFast VF8 is red meat for the sharks of the automotive journalism world.

First attempts at the US market are rare these days, and any automaker brave enough to enter should be wise enough to know one golden rule: Journalists in America are ready and waiting to point out anything and everything that isn’t perfect. This week journalists got the invite to drive the VinFast VF8. Despite the car being very good for a startup, journalists were quick to point out the car was rushed to market.

Granted, some of the complaints are legitimate gripes. Scott Evans of Motor Trend mentioned, “Put the VF8 in reverse to back out of a spot, and the whole car shudders violently.” This was in conjunction with fit and finish issues. Granted, you can generally overlook these things if a car is cheap. But at $49,000, the VF8 isn’t.

Evans mentioned the fact that VinFast has the ability to pivot quickly to solve the initial bugs from this car, but it makes us wonder why things got rushed. Perhaps the recent investor action prompted VinFast to act quickly to get to market. We hope for their sake they can build a car which can wow the sharktank of US journalists.

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Photos courtesy of CNBC, MotorTrend