2019 M3P Buy Opportunity

[JimboSl1ce]

Hey everyone,

New here and prospective owner of a 2019 Model 3 Performance. I found one with under 10k miles in blue and it's under $43k. Clean carfax, no issues with title, nothing. Clean as can be. Dealer wants to give me max trade value for my car which is also awesome. Seems like a fantastic deal and I'm likely going to proceed and buy it. What are some things I should look out for on a used tesla and what features or add ons like FSD should I look for to make it that much sweeter of a deal?

 

[Clover]

If you would qualify for the federal tax credit, you may want to look for a new one which would only be a few thousand more.

 

[toron2nashvile]

Yes i was going to suggest the same

 

[JimboSl1ce]

If you would qualify for the federal tax credit, you may want to look for a new one which would only be a few thousand more.

I will see what additional add ons have already been added to the vehicle i.e. enhanced auto pilot or FSD for example. That will help make the decision. How does the federal tax credit work? It's not something you can get right away right? Like an instant rebate.

 

[toron2nashvile]

Fsd can be added monthly which in my opinion is a better route.
Basic Auto pilot is included
Federal tax credit can be claimed when you file taxes next year. It will only return that amount if you have tax liability.
There are some income limitations as well

 

[JimboSl1ce]

Fsd can be added monthly which in my opinion is a better route.
Basic Auto pilot is included
Federal tax credit can be claimed when you file taxes next year. It will only return that amount if you have tax liability.
There are some income limitations as well

So then if I don't owe any taxes because I always get income taxes back each year sounds like I wouldn't receive any of the 7500 credit, correct?

 

[JimboSl1ce]

Fsd can be added monthly which in my opinion is a better route.
Basic Auto pilot is included
Federal tax credit can be claimed when you file taxes next year. It will only return that amount if you have tax liability.
There are some income limitations as well

Sounds like I got the best deal for me type of situation.

 

[Clover]

So then if I don't owe any taxes because I always get income taxes back each year sounds like I wouldn't receive any of the 7500 credit, correct?

No, the federal tax credit is on what you pay. All the money deducted from your paychecks is payments during the year. If you had $15K pulled from your paychecks and get a $3K refund and the end of the year, you still paid $12K. In that case, you would instead get a $10,500 check back at the end of the year instead of $3K. If you don't pay taxes, you can't get anything back from the tax credit. If you make over $150K single or $300 married adjusted gross income, you are also not eligible. I'd recommend some research and don't think you listed deal would entice me.

 

[toron2nashvile]

So then if I don't owe any taxes because I always get income taxes back each year sounds like I wouldn't receive any of the 7500 credit, correct?

It depends how much income tax is your liability

 

[Minnie Pearl]

There is an earnings cap that disqualifies buyers from the $7500 rebate, but it’s pretty high. I expect it doesn’t affect a lot of buyers for the Model 3. I believe it’s $300k USD for filing jointly. I’m not sure about filing individually.

 

[toron2nashvile]

150k for filing individually

 

[Gauss Guzzler]

A new P in blue costs $56,380 - $7500 = $48,880 assuming you qualify for the federal credit.
A 4 year old model with low mileage should be worth about 60%-70% of that, or $31,772 to be exact.

So if you sell or wreck the car within the first few years, this used model will end up costing you about $10K more than new. The discrepancy dwindles with age of course, but also note that the 2023 model has a heat pump for much better range in cold weather, Ryzen processor for fantastic UI performance, a non-combative center console, black trim, and a 4 year warranty.

There's certainly a possibility that the tax credit will be reduced before you take delivery of a new model (Tesla is notoriously late and obtuse with delivery estimates), but even in the likely event that the credit drops to $3750, you'll still be much better off with a new model for many reasons.

Lastly, FSD or Advanced AP are easily worth an extra $100 or maybe even $125 if you do a lot of lane changes on the highway, otherwise they're just a party trick with no useful function. That may change someday, but don't get too excited about a used car including one of these packages as if it's actually worth $15K or whatever.

 

[toron2nashvile]

I would opt for a new car instead of an old one.

 

[Knightshade]

Fsd can be added monthly which in my opinion is a better route.
Basic Auto pilot is included

FWIW this is not necessarily true--- basic AP didn't become standard until roughly 1/4-1/3rd of the way through 2019--- so depending when this 2019 was build it might have nothing but dumb cruise control (which is what you used to get if you didn't pay for any AP/FSD features back in the day)

 

[toron2nashvile]

FWIW this is not necessarily true--- basic AP didn't become standard until roughly 1/4-1/3rd of the way through 2019--- so depending when this 2019 was build it might have nothing but dumb cruise control (which is what you used to get if you didn't pay for any AP/FSD features back in the day)

I am talking about the 2023 model

 

[M3_Performante]

A new P in blue costs $56,380 - $7500 = $48,880 assuming you qualify for the federal credit.
A 4 year old model with low mileage should be worth about 60%-70% of that, or $31,772 to be exact.

So if you sell or wreck the car within the first few years, this used model will end up costing you about $10K more than new. The discrepancy dwindles with age of course, but also note that the 2023 model has a heat pump for much better range in cold weather, Ryzen processor for fantastic UI performance, a non-combative center console, black trim, and a 4 year warranty.

There's certainly a possibility that the tax credit will be reduced before you take delivery of a new model (Tesla is notoriously late and obtuse with delivery estimates), but even in the likely event that the credit drops to $3750, you'll still be much better off with a new model for many reasons.

Lastly, FSD or Advanced AP are easily worth an extra $100 or maybe even $125 if you do a lot of lane changes on the highway, otherwise they're just a party trick with no useful function. That may change someday, but don't get too excited about a used car including one of these packages as if it's actually worth $15K or whatever.

the $56,380 automatically disqualifies it as it is over the $55K limit

 

[Clover]

the $56,380 automatically disqualifies it as it is over the $55K limit

Unless they changed the price again recently, I think they are including the destination fee which does not exclude it from the federal tax credit. The M3P in Blue with a black interior is $54,990 + destination. I got a state credit too, so my price delta was smaller but that is not the case for everyone.

 

[M3_Performante]

No, the federal tax credit is on what you pay. All the money deducted from your paychecks is payments during the year. If you had $15K pulled from your paychecks and get a $3K refund and the end of the year, you still paid $12K. In that case, you would instead get a $10,500 check back at the end of the year instead of $3K. If you don't pay taxes, you can't get anything back from the tax credit. If you make over $150K single or $300 married adjusted gross income, you are also not eligible. I'd recommend some research and don't think you listed deal would entice me.

I wish that is how it worked, but apparently it isn't exactly the way it works....

If you owe say $3K at the end of the year, it will credit you the $3K and you will owe $0, but you won't be getting an extra $4500 check on a refund to make up the $7500 tax credit....If you get a $2000 refund, they won't add $7500 to that and give you $9500

Claiming the Federal Tax Credit​

A tax credit means an EV buyer will receive up to a $7,500 reduction in their tax liability for the year. But this is a flat credit, which means it is only worth the full $7,500 if the individual’s tax bill is at least $7,500. If an EV buyer has a tax bill of, say, $3,000 at the end of the year, the EV tax credit can only be a maximum of $3,000. The IRS will not go over and above this total tax liability figure, and in this example, the remaining $4,500 of the EV’s total tax credit will not be useable. Furthermore, that unused portion will not apply to future years’ taxes.

Claiming the federal tax credit occurs when filing a yearly tax return. The IRS has included a section that addresses the purchase of electric vehicles. Like anything else tax-related, it is best to consult an accountant or tax expert to claim an EV tax credit correctly


basically, the best way to take advantage of the tax credit would be to adjust your withholdings/dependents on your W2 to have the least amount of taxes taken out of each check and hope you owe at least $7500 in federal taxes at the end of the year to get the full amount.

 

[M3_Performante]

Unless they changed the price again recently, I think they are including the destination fee which does not exclude it from the federal tax credit. The M3P in Blue with a black interior is $54,990 + destination. I got a state credit too, so my price delta was smaller but that is not the case for everyone.

yes, as long as MSRP stays under $55K...destination charge shouldn't apply

a blue with white int would not qualify, but a blue with black int would

 

[Clover]

I wish that is how it worked, but apparently it isn't exactly the way it works....

If you owe say $3K at the end of the year, it will credit you the $3K and you will owe $0, but you won't be getting an extra $4500 check on a refund to make up the $7500 tax credit....If you get a $2000 refund, they won't add $7500 to that and give you $9500

Claiming the Federal Tax Credit​

A tax credit means an EV buyer will receive up to a $7,500 reduction in their tax liability for the year. But this is a flat credit, which means it is only worth the full $7,500 if the individual’s tax bill is at least $7,500. If an EV buyer has a tax bill of, say, $3,000 at the end of the year, the EV tax credit can only be a maximum of $3,000. The IRS will not go over and above this total tax liability figure, and in this example, the remaining $4,500 of the EV’s total tax credit will not be useable. Furthermore, that unused portion will not apply to future years’ taxes.

Claiming the federal tax credit occurs when filing a yearly tax return. The IRS has included a section that addresses the purchase of electric vehicles. Like anything else tax-related, it is best to consult an accountant or tax expert to claim an EV tax credit correctly


basically, the best way to take advantage of the tax credit would be to adjust your withholdings/dependents on your W2 to have the least amount of taxes taken out of each check and hope you owe at least $7500 in federal taxes at the end of the year to get the full amount.

No, I have it correct. The amount you owe at the end of the year/April does not matter. It matters what you liability was over the full year. The vast majority of people who pay taxes have amounts deducted from their pay during the year. This amount can be refunded at the end of the year with the $7,500 credit. Since I don't offer to give the IRS a free loan during the year, I'll pay as little as I can from my paychecks and often cut the IRS a check at the end of the year. What I pay in April has no impact. What I pay over the year does. If you only pay $3K of taxes, you can only get $3K back like I said. However, if you pay $15K in paycheck deductions and would get $3K back before the credit, you will. get $10,500 back instead.