Dealership actually owns the model x?

[diffranklin]

I am searching for an Model X P100D but I encountered 2 dealerships that claimed they actually own the car(listed as owner on carfax). Even though both of them said the transaction will go through the dealership but I am still concerned about this strange situation.

Is there a potential risk for this?

Thanks!

 

[HostileHarry]

Tesla service center or a 3rd party?

 

[M3BlueGeorgia]

OK, I'll bite:

Are you talking about a used car from a non-Tesla outlet (aka Dealership) or taking about a Tesla Delivery Center (not a "dealership").
The difference matters

 

[diffranklin]

They are non-Tesla dealerships.

 

[HankLloydRight]

Why is this a 'strange situation'? Sounds perfectly normal.

 

[diffranklin]

Because that made the car has more owners. Usually 1-owner cars are easier to sell.

 

[jjrandorin]

No more risk than buying any other USED car from a dealership that sells them. Little bit harder than buying a used ICE luxury car because you could easily get a pre purchase inspection on it. Cant really do that on a tesla that I am aware of (or can you?).

 

[MP3Mike]

Because that made the car has more owners. Usually 1-owner cars are easier to sell.

Don't some states require that dealers transfer the car into their name once they take possession of it? (Or at least within x days.)

No more risk than buying any other USED car from a dealership that sells them. Little bit harder than buying a used ICE luxury car because you could easily get a pre purchase inspection on it. Cant really do that on a tesla that I am aware of (or can you?).

I think Tesla offers a PPI service.

 

[jjrandorin]

Thats good to know.

 

[kev1n]

in CA at least, the dealer stuff will show up on carfax(showing ___ dealer has possession of car and listed for sale, etc) but they will not be listed or considered an owner. unless you are saying the dealership owners name is on the actual title then thats a bit fishy

 

[HankLloydRight]

Because that made the car has more owners. Usually 1-owner cars are easier to sell.

I guess you haven't bought many used cars, but that's generally standard operating procedure for selling used cars from a dealer. I think in most states it's not legal for them to pass the title directly from the previous owner to you.

 

[SMAlset]

Wonder if it was a leased vehicle or car rental that they bought. Or maybe some traded it in?

Isn't there an advantage if used car is purchased thru Tesla as opposed to 3rd party. Not something we've encountered as buying both ours new, but if so OP should be aware of to make a better more fully informed buying decision.

Curious year mfgr'd and mileage? Clear on accidents?

 

[diffranklin]

I am thinking that they got the car because they want to do that 100% tax rebate?

They(dealer) only put few hundred miles on the car after they got it...

 

[2012MS85]

There is no such thing as a “100% tax rebate.” EVs get a tax CREDIT, which is an offset of taxes owed. So if said dealer bought the X for that purpose, it’s no different than if Joe Blow did the same. No 2nd owner may legally claim the tax credit, regardless of whether or not it was claimed by a dealer or Joe Blow. If TESLA INC isn’t the seller, there is 0% chance any buyer gets any tax credit (and most certainly not any tax REBATE)

Also, under the IRS tax code, a dealer that plans to immediately resell this X cannon claim the tax credit. Nor can any future owner. The dealer can file with the IRS in an effort to cheat and get the $7500 tax credit, but the owner/employee intending to commit tax fraud can also go to jail

 

[diffranklin]

Model X IRS 100% Deduction “Hummer Loophole” - 2018 Edition
I could be wrong since I am new to the EV world... But I read this on the forum today.

 

[mattack4000]

If this was a service center, I would be worried about a buyback

 

[HankLloydRight]

Model X IRS 100% Deduction “Hummer Loophole” - 2018 Edition
I could be wrong since I am new to the EV world... But I read this on the forum today.

Car dealers aren't like you and me or corporate entities. They buy and sell cars as their business. For instance, when they took title to the car, they didn't pay sales tax since they're legally a 'reseller'. I really don't think the IRS is foolish enough to allow car dealers to take advantage of the 'hummer loophole' which applies to many other cars besides the Model X.

The only thing to consider is that if the car has less than 50k miles on it, buying it through a used car dealer makes it ineligible for the buyer to purchase the Extended Service Agreement (warranty) which most other people can who buy a car from a private individual. And Used/CPO cars direct from Tesla get their own 2 or 4 year warranty.

So buying from a used car dealer the only warranty you can get is the original factory warranty --4 years/50k miles. That's it, unless the dealer themselves offers a third-party warranty.

 

[2012MS85]

Model X IRS 100% Deduction “Hummer Loophole” - 2018 Edition
I could be wrong since I am new to the EV world... But I read this on the forum today.

I used to be an adjunct professor of accounting (including teaching on the US tax code), so I normally prefer to be paid for this education Your link is about Section 179 expensing under the IRS tax code. Long story short, this has absolutely nothing to do with YOU as a potential buyer of the X they have for sale. Yes, some successful Seattle car dealer may have bought this X to offset $100,000 of tax due on their 2018 tax return via a legit Section 179 expense. But now a week later they are selling said X for whatever price they get. Next year when they file their 2019 US tax return, they’ll have a massive tax GAIN they’ll owe taxes on. It amounts to a one calendar year delay in paying their federal taxes owed to Uncle Sam. IT HAS NO EFFECT ON YOU. Other than zero parties get to legally claim the US $7500 tax credit, which is a TOTALLY different issue than the Hummer loophole (I.e., Section 179 tax credit).

Please drive right now to a TESLA Store and buy an inventory X, S, or 3 that Elon just marked $2k off...and then apply your legal tax credit of $3,750 off your 2019 taxes owed when you file next year If a dealer feels shady, move along.

 

[diffranklin]

Thanks for your thorough reply.
The 1st owner of this car drove 1100 miles for 11 month and it was a lease.
The 2nd owner of this car is the owner of the dealership and they drove few hundred miles.

I actually asked the dealer and they replied to me saying that the Section 179 is exactly why they purchased that car and used it very lightly.

 

[HostileHarry]

FYI if you buy a Tesla from a registered dealer you are unable to add extended warranty. Therefore once the factory warranty ends At 4 year /50k miles that’s it for you.