Another tax credit and warranty question...

[timatraw]

So- There's this guy who owns a car dealership and he bought a Tesla and put it in his car dealership's name.
I'm thinking about buying the car (P90) and he says he thinks the tax credit might be possible since he never applied for it. What do you think? He also thinks that the warranty would be transferrable since he is one of the owners and he is the person (owner) of the P90. How do I get myself in these situations? Do you think either of these two things are possible?
Thanks for any insight.
Tim

 

[ABC2D]

To qualify for the credit a vehicle must be purchased brand new from a manufacturer. If you buy from this guy, you wont qualify, but you will have warranty.

 

[FarmerDave]

Negotiate the price to include him passing the tax credit on to you in the form of a lower price.

 

[timatraw]

Im concerned that since the title is in a company name that "ABC Auto" that Tesla would deny the warranty.
If I call them with the VIN would they tell me?

 

[HankLloydRight]

If the title is in the company's name, I think you're out of luck. Get a carfax and see what it says for ownership.

Otherwise it's a pretty big loophole for dealers to circumvent Tesla rules.

 

[cpa]

Did he buy it for resale? I cannot comment on Pennsylvania. In California, if a licensed auto dealer purchases a vehicle for resale, the dealer does not receive a pink slip (now, actually more of a rainbow slip) which vests title. Moreover, the dealer does not pay sales tax, as this is a wholesale transaction.

If the dealer purchased it for resale under Pennsylvania law, I would assert that the retail purchaser of the Tesla is eligible for the credit. If the dealer purchased it for his business, paid sales tax, and now wants to flip the vehicle, then I would submit that you are SOL on the tax credit.

You need to ask a lot more pointed questions, perhaps even asking for verification of the dealer's position so that you can feel confident in your decision. Research the laws in Pennsylvania.

Before I get all sorts of catcalls and other snark, I am well aware that Tesla does not sell wholesale to dealers. However, Pennsylvania might have some sort of rule in this regard. And in cases like this, federal income tax law looks to state law to determine eligibility.

 

[MP3Mike]

Im concerned that since the title is in a company name that "ABC Auto" that Tesla would deny the warranty.

There would be no problem with the warranty, but you might not be able to buy the ESA. (Extended Service Agreement.)