Did anyone trade-in their lemon/repurchase/buyback for another Tesla?

[playoutside]

Tesla has offered to buyback my Jan/2018 Model 3 (I’ll post the details later once the transaction is finalized). I’m posting this thread here as it seems many early X owners were offered buybacks.

My question: I want to buy an X instead of getting another 3. Tesla says they will cut a check to me for my 3, then I can buy the X in a separate transaction. This is not ideal because in my state (WA), I only pay sales tax (10%) on the difference of purchase price - trade in value. So by not trading in, it will cost me almost $6K. Has anyone successfully traded in their lemon Tesla on a new Tesla instead of separate transactions? (Comments or PMs welcome if preferred)

 

[verygreen]

it's a wash either way:

1. when you return the (lemon) car to Tesla, they refund you full purchase price AND the sales/other taxes
2. you then pay full sales tax on the X.

unless you planned to double-dip and get your sales tax count against the X purchase price and only pay tax on the remainder? I don't think it works like that.

 

[MXWing]

it's a wash either way:

1. when you return the (lemon) car to Tesla, they refund you full purchase price AND the sales/other taxes
2. you then pay full sales tax on the X.

unless you planned to double-dip and get your sales tax count against the X purchase price and only pay tax on the remainder? I don't think it works like that.

Op is laziest tax evader ever.

With that said, a buy back isn’t a trade in.

 

[playoutside]

With that said, a buy back isn’t a trade in.

To clarify, Tesla has made it clear to me that this isn’t a lemon buyback. They are voluntarily choosing to repurchase the car from me.

 

[MXWing]

To clarify, Tesla has made it clear to me that this isn’t a lemon buyback. They are voluntarily choosing to repurchase the car from me.

What’s the reason they don’t let you just trade it in?

 

[playoutside]

What’s the reason they don’t let you just trade it in?

All they have said so far is that it needs to be two separate transactions...

 

[verygreen]

To clarify, Tesla has made it clear to me that this isn’t a lemon buyback. They are voluntarily choosing to repurchase the car from me.

Yes, they do try to arrange it as a voluntary repurchase so that they don't need to rebrand it as a lemon (= unsellable car) and can try to resell it to somebody further down the line.
But they are still returning you 100% of money you paid I imagine (less fed tax credit that they assume you will get. don't forget to get a guarantee they'll compensate you if it falls through), as such no matter how tempting double-dipping is, you lose nothing if they don't allow you.

 

[GOPJEW]

Your will NOT get better th tax credits. Tesla stipulates that if you’ve claimed the initial tax credit you must refund it to them/commit you won’t file for it.

They replaced my old X via a buy back after they crashed it just after delivery (better than Audi was when i had a problem with a delivered Audi).

Good luck - I’m super happy

 

[MXWing]

All they have said so far is that it needs to be two separate transactions...

Yeah it could be a legal requirement or an internal process requirement.

Unless someone in the know chimes in I would assume it’s not something a store or delivery center can help you get around.

Clock is ticking though on the fulll federal tax credit so you have to secure delivery of your X by end of year and use the buyback proceeds to pay into the X later.

 

[MXWing]

Your will NOT get better th tax credits. Tesla stipulates that if you’ve claimed the initial tax credit you must refund it to them/commit you won’t file for it.

They replaced my old X via a buy back after they crashed it just after delivery (better than Audi was when i had a problem with a delivered Audi).

Good luck - I’m super happy

Ahh.. Tesla must claim them for themselves like how a leasing company does.

Depending when OP got his car, chances are he wouldn’t have claimed the credit until April of next year.

It’s a bummer for tax reduction as I’m sure that’s in the calculus for doing a switch.

 

[rjdoc74]

Tesla has offered to buyback my Jan/2018 Model 3 (I’ll post the details later once the transaction is finalized). I’m posting this thread here as it seems many early X owners were offered buybacks.

My question: I want to buy an X instead of getting another 3. Tesla says they will cut a check to me for my 3, then I can buy the X in a separate transaction. This is not ideal because in my state (WA), I only pay sales tax (10%) on the difference of purchase price - trade in value. So by not trading in, it will cost me almost $6K. Has anyone successfully traded in their lemon Tesla on a new Tesla instead of separate transactions? (Comments or PMs welcome if preferred)

Tesla did a voluntary buy back of my 2016 X in 2/18. I now drive a 2018 MX. What you are asking for is not possible. These are 2 separate transactions.

 

[Insureit1]

Ditto for me. Tesla will not allow the buy back as a trade. Two different transactions. My 2018 X has been much better than the 2016 X. Zero problems so far.

 

[mattack4000]

It's BS they try to buy it back for $7500 less given not everyone can claim it, plus it's not like they can take it again as the car is used.

 

[Rockster]

Two separate transactions for me, too. And because I had already claimed the $7500 credit on the first one, the purchase of the replacement was adjusted so the entire transaction was a net cost me of $7500. This way, my second tax credit was a wash.

 

[mattack4000]

Imagine if you took section 179 and have to pay it back

 

[Litigate28]

How did you guys initiate the buyback process? Is it through the service center?

 

[outie]

How did you guys initiate the buyback process? Is it through the service center?

Yes, through the service manager.

 

[fbitz777]

When Ford took in my lemon Focus EV they applied the amount towards the new car ...was actually almost free since the new prices had gone down over the year.


And YES I claimed 7500 tax credit for both and it's totally legal. Not sure why Tesla wants that back! That's BS according to my accountant.

 

[rjdoc74]

I went through this process. You need to keep escalating and complaining to the manager of a service location who will initiate the process. FYI Tesla WILL NOT apply full cost of your vehicle to new vehicle purchase. They will give you an offer depending on car mileage, tax credit you claimed, etc. It sounded to me like it was not negotiable, but I really felt mine was fair (I got 96% of the cost back plus free extended warranty for my replacement).

 

[eventhused]

Our Model 3 is currently at the service center and for 3 days I have been waiting for a service manager to call back. I've even had to call a lemon law attorney, though I haven't initiated any lemon law policies, just wanted to know my options. At this point, we would like Tesla to buy our vehicle back so we can purchase another one that either won't have the issues we are experiencing.

Any advice?