Tips on Buying Cars: Lease Trade-in Tax Credit, subaru forester, lease trade


Question
We are currenlty leasing a 2009 Honda civic in Chicago, IL.  The lease deal is up on April 26 and we have decided to purchase a Subaru Forester (deposit has been made).  

Every dealer we have visited (we shopped around at multiple car companies)has told us that they would take our leased civic and would be able to apply a tax credit towards the new vehicle purchase.  

At the time of "deal making" for the Forester, the dealership manager told us that unfortunately they can not apply a tax credit since the leased car is a Honda and not a Subaru, and we should just return the car to Honda.  

So, who is right here?  If I am entitled to a tax credit for trading the civic to Subaru, is there any documentation that I can show them to prove my point?

Thanks for your time.

Answer
They have to purchase the vehicle from you in order to use it as a trade for the Subaru. They are trying to get the easy way out. What I would do is try to get them to drop the price of the Subaru say $800-1000. That will equal the tax credit and you can just turn the cr back in...Let me know what happens, and send me any more questions you may have!

STEVE