Genesis reserves a $7,500 tax credit when consumers lease the all-new GV60. Although the high-tech luxury crossover is the brand’s first electric vehicle, dealer incentive bulletins reveal that leasing a GV60 can be a bad idea if you’re looking to get the best deal possible. Unfortunately, this may not be so surprising.
The Genesis GV60 can be horrible for rent
The first GV60 leasing programs that went into effect Wednesday confirm that Genesis Finance is retaining a $7,500 federal tax credit for electric vehicles. Traditionally, captive lenders pass on the tax credit to tenants in the form of rental money. Unfortunately, that’s not the case with the 2023 Genesis GV60, potentially making it a poor rental vehicle.
If you are considering renting rather than buying a GV60, this could present a major downside. To put that into perspective, buying a GV60 gives consumers access to the full amount. That said, a closer look reveals that this approach has quickly become standard among manufacturers of some of the newer electric vehicles.
For example, Ford Credit retains a $7,500 tax credit on Mach-E leases. Likewise, Hyundai is keeping the IONIQ 5 rental tax credit. While we hoped Genesis would make up for that with a low rental rate, that doesn’t seem to be the case. The absence of a good interest rate can make GV60 leases a bad idea.
A GV60 rental slip indicates that the electric vehicle has a monetary factor of 0.00200 on a 36 month lease. This equates to an interest rate of 4.8% APR, which isn’t great. Additionally, the GV60’s residual values aren’t particularly impressive at just 54% for the base model and 51% for the top-end Performance configuration.
Genesis GV60 Check Out Retail Explained
If you want a lease-like payment on a Genesis GV60, there’s an alternative you should know about. It’s called Genesis Discover Retail and offers balloon financing with the ability to claim the full tax credit. A potential downside is that consumers may be saddled with a massive end-of-lease payment if they keep their GV60.
Genesis Discover Retail is available in California, New York, New Jersey, and Connecticut, and is limited to a 36-month contract. For reference, Ford offers a very similar program called Ford Options Plan on electric vehicles, while Hyundai offers an option called Hyundai Evolve Retail, and Kia offers Kia Advantage retail financing.
Genesis Discover Retail is limited to electric vehicles and offers the following options after the contract ends:
- Reimburse and keep your GV60
- Trade in or sell your GV60
- Sell your GV60 back to Genesis for the purchase price at the end of the period
- Refinance your GV60 through Genesis
Should you buy a Genesis GV60 or rent one?
Unlike some electric vehicles, the Genesis GV60 offers three options: purchase, lease and balloon financing. Each has advantages and disadvantages. That said, Genesis has a GV60 debut finance deal involving a 2.99% APR rate. Buying also gives you access to the full tax credit, as well as a better interest rate than you can get by renting.
While Genesis Discover Retail might seem like a bargain, it’s worth noting that the underlying interest rate is pretty bad at 5.89% APR at the time of this writing. That’s nearly double the brand’s best price for purchasing a new 2023 GV60 based on incentives available nationwide through June 30.
We recommend that you carefully consider your needs and your budget before making a decision. Prices for the GV60 start at $59,985 including destination, although the price does not include tax credit or applicable plug-in discounts. Genesis says availability will be extremely limited, so making a reservation may be a good idea.
Explore Genesis GV60 Pricing and Offers