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Can you get a 75D limited to 60D and remove AP to save on taxes?

Discussion in 'Model S: Ordering, Production, Delivery' started by Trips, Sep 26, 2016.

  1. Trips

    Trips Member

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    I am looking at a S75D inventory car with AP but do not want to pay the extra taxes each year for the upgrades. Would Tesla limit that car down to the 60 with no AP and then let me pay cash for the upgrades? Even if they charged extra because they technically would be purchased later, I would turn out better.

    This would save me about $2,300 over five years in taxes. In Nebraska you pay based on the sale price and not the actual value. Am I missing anything here?
     
  2. Tanquen

    Tanquen Member

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    Nope.
     
  3. mhw23

    mhw23 Member

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    If you purchase later, you will pay more for the upgrade, and you will also still need to pay tax I'm sure. Don't try to cheat the tax system.
     
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  4. Derek Kessler

    Derek Kessler Member

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    1) There are Model S 60 inventory cars available
    2) Every inventory car comes with Autopilot enabled. There is no mechanism to un-enable it.
    3) Autopilot is half the reason to get a Tesla. It's worth any additional taxes you may incur.
    4) No offense, and I don't know your financial situation, but if $500/year in taxes are really such a concern for you, then maybe you shouldn't be considering a +$70,000 car. I want one, I can't afford one.
    5) All of this can be solved by ordering a custom 60D configured to your specifications.
     
  5. Trips

    Trips Member

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    Purchasing after is only a total of $1,000 extra. It is still saving me $1,300 it taxes over 5 years.

    I highly doubt that anyone goes down to the DMV after upgrading asking to pay more. How is adding a feature like AP different than buying aftermarket rims?
     
  6. Rahul

    Rahul Member

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    If this were the case no one would initially order these features to save on sales tax. I believe Tesla collects sales tax when these upgrades are performed later.
     
  7. bonaire

    bonaire Active Member

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    Won't you pay sales tax on each transaction after the initial sale? Options add-ons later should be levied new sales taxes.
     
  8. cgiGuy

    cgiGuy Member

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    His state charges tax over the first 14 years of the life of the vehicle based on the MSRP set by the manufacturer. If MSRP is lower initially, he'll pay less each year. I don't see this as "cheating" any more than adding different, more expensive wheels to your car later and not having to pay annual vehicle tax on them for 14 years. Of course if the car is over $100K it doesn't matter.. you've maxed it.

    Nebraska Official Department of Motor Vehicles | DMV

    "Motor Vehicle Tax is assessed on a vehicle at the time of initial registration and annually thereafter until the vehicle reaches 14 years of age or more. It is based upon the MSRP (Manufacturer's Suggested Retail Price) of the vehicle. The MSRP on a vehicle is set by the manufacturer and can never be changed. Once the MSRP of the vehicle is established, a Base Tax set in Nebraska motor vehicle statutes is assigned to that specific MSRP range and motor vehicle tax is then assessed."
     
  9. scottm

    scottm Active Member

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    #9 scottm, Sep 26, 2016
    Last edited: Sep 26, 2016
    Maybe he's talking about paying DMV registration fees (annually) that are based on original invoice paid for the car from the manufacturer.

    And I agree, why not drive down the price of the car and therefore taxes based on % of that invoice... and decide later if and when you want those features? Staged consumption when you need it.

    It's not a tax system cheat. Sales tax would be paid on the feature when added.

    It's not a registration fees cheat either, if that rule was written that way. If the DMV wanted a fair market value assessment of each vehicle registered each year, it would be a declining revenue base.

    DMV can't have cake and eat it too.

    Actually, I think it's brilliant that a manufacturer can increase the value of the car after its initial purchase. And inadvertently in doing so, duck the "original MSRP" rule giving the consumer an advantage.

    This sounds more like a luxury tax than a road tax.

    And on that topic, with EV's not paying road tax at the pump per liter of fuel... Department of Transportation is also missing out on revenue from road users to pay for improvements. I've heard some states are tacking on an EV premium to annual registrations to collect what they can't get at the pumps.
     
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  10. cgiGuy

    cgiGuy Member

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    Exactly.
     
  11. bonaire

    bonaire Active Member

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    Sounds like MSRP is the number - and, based on cgiGuy, even if things like a $7500 discount were applied to a 75, the tax is based on sticker price, not sales price. The law in Nebraska seems written in the year 1950 or before - not progressive at all. They probably just don't have a computer system that can take the actual sales price versus some arbitrary MSRP. The state appears to be wanting to "collect maximum tax - tax it thinks it deserves". So, it is a predatory tax in some ways. In terms of Recreational vehicles, they have MSRP well above almost all selling prices. No reason to buy an RV within the boundaries of Nebraska. Normally, a new RV sales is about 68-70% of the MSRP. This is the final agreed-upon price in most RV purchases as new.
     
  12. cgiGuy

    cgiGuy Member

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    True. Discounts would probably not be factored into a Tesla's "MSRP." But unlike RVs, Tesla's "Total Vehicle Price" = MSRP, since there's no haggling. So, by not having AP enabled and by having a smaller battery, you'd bring down the MSRP.
     

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