California consumers interested in a Fiat 500e will be getting a sweetheart deal from Fiat; a $199 lease for 36 months with a $999 down payment.
At retail, the car will cost $32,500 plus a $7,500 tax credit. But as the Los Angeles Times reports, customers who lease won’t be able to collect the tax credit.
Those leasing the car can also get a special $2,500 rebate that California offers for electric cars, which will cover the down payment and about six lease payments.
Fiat’s move is an agressive one. Nissan recently cut the base price of the Leaf to$28,800, or $6,400 less than it was in 2012. Nissan also offers 36-month lease deal of $199 a month and a $1,999 down payment. But the Leaf is sold nationwide, unlike the 500e, which is limited to California only. The reason for this is economic. Fiat stands to lose money on every single 500e, and is only selling the car to comply with California emissions standards. Chrysler CEO Sergio Marchionne has gone on record with his displeasure over the 500e’s money-losing nature, telling Automotive News
“I will try to sell the required numbers for me to optimize compliance with the emission standards and not one more.”