Destination fee and tax credit

[Possib1edoc]

When applying for the tax credit - is it the price before destination fee or after destination fee is included?

 

[240vPlug]

I believe it's before destination. If you go on Tesla's site and you can figure a vehicle it'll tell you whether or not that vehicle qualifies for the tax credit. I went on there and built one with an MSRP of 54.990 which is over 55,000. Once you add destination and that still qualifies. I'm not an accountant but the destination fee, taxes and dealer accessories I believe or not included in the MSRP

 

[Araex]

Their website certainly makes it sound like it's before destination. Kinda makes you wonder why they didn't abuse it and increase the destination fee to $2,000 or $3,000. I recently ordered a Mercedes and its destination fee was $2,000+.

 

[240vPlug]

Destination fee is higher now. It was $1,125 when I took delivery in June.

 

[TheSocey]

Did anyone get a final answer on this? I just took delivery of a model Y LR AWD, grey with a tow hitch and it totaled 54,990 but with destination fee, it’s 56 something.

 

[ucmndd]

Did anyone get a final answer on this?

Yes, it’s been answered over and over.

 

[ATPMSD]

Based on MSRP

"The MSRP, as defined by the IRS, is the base retail price provided by the manufacturer plus the retail price of each accessory or optional piece of equipment that is physically present on the car at the time of delivery to the dealer. MSRP does not include taxes and other fees added on by the dealer."

 

[240vPlug]

Here is an article from Edmunds. The question is if destination is included in MSRP and I believe that answer is no. That is a fee charged by the dealer and not part of the vehicle or options.

https://help.edmunds.com/hc/en-us/articles/206102367-Are-destination-charges-negotiable-#:~:text=A%20%22destination%20charge%22%20is%20a,charges%20are%20typically%20not%20negotiable.

 

[scSeattle]

I believe it's before destination. If you go on Tesla's site and you can figure a vehicle it'll tell you whether or not that vehicle qualifies for the tax credit. I went on there and built one with an MSRP of 54.990 which is over 55,000. Once you add destination and that still qualifies. I'm not an accountant but the destination fee, taxes and dealer accessories I believe or not included in the MSRP

Is order fee $ 250 counted towards vehicle purchase price or not? If counted then your price $ 54,990 would be above 55,000 tax eligibility. Please let me know

 

[Ray_R]

Is order fee $ 250 counted towards vehicle purchase price or not? If counted then your price $ 54,990 would be above 55,000 tax eligibility. Please let me know

The $250 order fee comes off the purchase price. So $54,990 would become $54,740.

 

[ATPMSD]

The $250 order fee comes off the purchase price. So $54,990 would become $54,740.

Once upon a time this fee was credited to the purchase, but I do not know if Tesla still does this. In any case, the order fee seems to be “other fees” and does not impact the MSRP, for tax credit purposes. See post #7.

 

[ucmndd]

The $250 order fee comes off the purchase price. So $54,990 would become $54,740.

I don’t think this has been true in a very long time.

 

[kbr0125]

The $250 is added to the cost of the car on the top section, and then it is subtracted out at the bottom of the price details.

This is my price details from Wells Fargo loan I was approved for on the tesla app.

White / Black MY

Model Y = 39,990.00
Long Range = 13,000.00
Destination Fee = 1390.00
Order Fee = 250.00

Car Price 54630.00

If i take off the destination fee it equals 53,240, take another 250.00 off, and you get the msrp of 52,990.00

Then, when you scroll down to the very bottom, it gives a -250.00 credit, for payments received "order deposit".

 

[scSeattle]

The $250 order fee comes off the purchase price. So $54,990 would become $54,740.

Thank you all

 

[Ray_R]

It appears to me that what Tesla used to call an order deposit of $250 and was applied to the purchase price is now called an order fee and is in addition to the purchase price.
But I could be wrong if what kbr0125 says is still true after the recent price changes.

 

[kbr0125]

I think the fee is safe just weird how they show it at the top.

 

[Ray_R]

That explains it better. Thanks!

 

[scSeattle]

Did anyone get a final answer on this? I just took delivery of a model Y LR AWD, grey with a tow hitch and it totaled 54,990 but with destination fee, it’s 56 something.

IRS clearly mentioned in their web site that delivery fees and taxes are exempted

 

[Captain78]

I ordered a MY with blue exterior and black interior. The price of the vehicle is under $55,000 but with the destination fee and tax will exceed $55,000. Will I still be eligible for the tax credit assuming delivery before March?

 

[ucmndd]

I ordered a MY with blue exterior and black interior. The price of the vehicle is under $55,000 but with the destination fee and tax will exceed $55,000. Will I still be eligible for the tax credit assuming delivery before March?

Yes.