Did we pay more for tax incentive in 2018

[TT97]

When the ordering was available there was good indication as to when it would be delivered, including an assurance that if it wasn't made in time for the full tax credit the price would be adjusted. But they mostly made their year-end deliveries as scheduled.

And anyway ff you buy the car early in the year, then you have the entire rest of the year to adjust your withholdings. If you buy the car later in the year, then you have just the remaining period of the year to adjust your withholdings -- or longer if you pay estimated taxes into the next year.

but you aren't out the money paid ofr the car until the end of the year too and if you end up with a big refund then you can get that shortly after filing your taxes.

It isn't a big time value of money. But people who like to complain and whine will make a bigger deal about it -- but it simply is not a big dollar value. But really this is a tale of people who probably shouldn't have bought a Tesla anyway. They just can't get used to trade offs for innovation and fast-acting. They would probably be better off going to cadillac dealer in person and having their hand held more.

This may be a good side effect of the online only sales model -- buyers who have different priorities and need less hand-holding will be comfortable with an online process whereas more problematic buyers will not. And Tesla will be better off without them.

Normally, in a situation like this, I would adjust my withholdings. Unfortunately, this year with your neighbor, the 6' tall Umpa Lumpa, f'ing everything up, I could not get a clear picture of my end tax obligation. I used the $7,500 credit as a safety net to avoid penalty charges.

Having a sales model that alienates a portion of the population is not "good" and they will not be better off without them. To stay in business, Tesla needs to sell as many cars as they can and they can't afford to alienate buyers for something they can easily control.

 

[Glamisduner]

When the ordering was available there was good indication as to when it would be delivered, including an assurance that if it wasn't made in time for the full tax credit the price would be adjusted. But they mostly made their year-end deliveries as scheduled.

And anyway ff you buy the car early in the year, then you have the entire rest of the year to adjust your withholdings. If you buy the car later in the year, then you have just the remaining period of the year to adjust your withholdings -- or longer if you pay estimated taxes into the next year.

but you aren't out the money paid ofr the car until the end of the year too and if you end up with a big refund then you can get that shortly after filing your taxes.

It isn't a big time value of money. But people who like to complain and whine will make a bigger deal about it -- but it simply is not a big dollar value. But really this is a tale of people who probably shouldn't have bought a Tesla anyway. They just can't get used to trade offs for innovation and fast-acting. They would probably be better off going to cadillac dealer in person and having their hand held more.

This may be a good side effect of the online only sales model -- buyers who have different priorities and need less hand-holding will be comfortable with an online process whereas more problematic buyers will not. And Tesla will be better off without them.

I might not remember correctly but when I ordered it originally said by end of the year or something along those lines.

But no matter how you adjust your earnings last year (I didn't bother with so many unknowns), you still needed to have 7500 in tax liability. That's very different than having an extra 7500 in hand when ordering. I don't normally like to buy new cars and was hoping the 7500 would soften the depreciation blow of buying new, but instead it only partially offset the price reductions.

 

[TeeEmCee]

Take it with a grain of salt

View attachment 383023

Must rent Home Depot truck to carry said grain of salt.

 

[bhzmark]

The flat screen tv, and the laptop and the Tesla, and a million other tech goods that you buy today will be better faster and cheaper in the future. Get over it.

 

[FlatSix911]

Yes we paid more and got Fcuked over backwards with FSD TOO! F Tesla!

Stop your crying... you got what you paid for should enjoy the ride

 

[apsen]

The flat screen tv, and the laptop and the Tesla, and a million other tech goods that you buy today will be better faster and cheaper in the future. Get over it.

But it doesn't take years to deliver said goods.

 

[Nocturnal]

Tax credits are shared by buyer and seller. The ratio of how that credit is shared is due to demand, price elasticity of demand to be specific. If buyers don't care so much and can buy a different product then most of the savings will go to buyers, if buyers really want the product (think cigarettes) then credits will mostly benefit the seller.

So I think that is our answer. We all REALLY wanted a Tesla and we rushed out to buy one. That means we didn't get most of the benefit. I'm ok with that myself. Would not do it any differently. I've owned my P3D since august and it's been a blast.

 

[SammichLover]

You can start getting your tax credit right away by adjusting your tax withholding to be a lower amount.

Not with my taxes, a very significant portion of what's withheld are fixed amount withholding.

Plus if you purchased late in the year you don't get much time to get that reduction to matter.

 

[more863-also]

The flat screen tv, and the laptop and the Tesla, and a million other tech goods that you buy today will be better faster and cheaper in the future. Get over it.

Nah. When I buy a laptop and the price drops within 90 days, I get a refund for the difference on my credit card.

 

[fluxemag]

Coming up on a 1 year anniversary of my LR RWD, silver metallic with no other options. If I were to buy the same car, with my second choice color white since SM is no longer available, it would be $5241 cheaper including sales tax of 0.5% in OR. After the decrease in federal tax credit that's $1491 cheaper. I drove the car 11k miles in the last year saving me about $130/mo in fuel, or $1560. So I saved $69...nice.

The real hit is on depreciation, which up until the price drops was looking phenomenal, and now looks average compared with normal cars. YMMV.

 

[more863-also]

Yeah the LR RWD with no options comes out fine. The LR AWD with EAP (or FSD) got hardcore screwed.

 

[bhzmark]

But it doesn't take years to deliver said goods.

What are you talking about? I took delivery in 15 minutes.

If you mean you pre-ordered in 2016 presumably you knew exactly what you were doing when you preordered -- ie held your place in line to get be offered the opportunity to actually order the car when it was available.

Some people just do not have the cognitive resources to buy Teslas -- they should really just buy something else.They don't even understand the difference between pre-ordering, ordering, and taking delivery.

 

[caskater47]

Some of these rioters lost significantly more than that:

Tesla owners literally protest over drastic price cuts

"In some markets, the higher-end versions of Model S and Model X have seen overnight price reductions of over $30,000.

One of those markets is Taiwan, where the price of a Model S P100D was cut almost in half by Tesla’s latest price changes – resulting in about $100,000 in savings."

Ouch.

It's funny too me that folks are now protesting and nobody here seems to care but when I suggested it a few months back I got lambasted with a massive dump of ridicule and disgust.

 

[chowfun]

Don't forget we paid states tax on that extra $3750 we paid for the car.

 

[apsen]

What are you talking about? I took delivery in 15 minutes.

If you mean you pre-ordered in 2016 presumably you knew exactly what you were doing when you preordered -- ie held your place in line to get be offered the opportunity to actually order the car when it was available.

Some people just do not have the cognitive resources to buy Teslas -- they should really just buy something else.They don't even understand the difference between pre-ordering, ordering, and taking delivery.

I still do not have it. Do you really have FSD already?

 

[bhzmark]

I still do not have it. Do you really have FSD already?

Try to more clear in your posts. I thought you were talking about ordering the car, not fed.

This thread the tax credit.

You prepaid for FSD. Or you purchased on option to get FSD for $0 when it becomes available -- you locked in the price for when it becomes available with no promises as the timing of when it will become available. So what is complaint again? Try to be clear and precise in your use of words if you want to communicate effectively.

Seriously Tesla may not be the right car for you. I'm seeing lots of red flags that may frustrate your ability to enjoy the car.

 

[TT97]

Or you purchased on option to get FSD for $0 when it becomes available

I never realized I bought an option. Where can I sell my option?

 

[Knightshade]

You prepaid for FSD. Or you purchased on option to get FSD for $0 when it becomes available -- you locked in the price for when it becomes available with no promises as the timing of when it will become available. So what is complaint again?

Currently it's that you clearly have no idea WTF an option is or how they work- for one a person who can buy them can also SELL them-and can also sell the stock they might exercise the option to purchase....neither is true of FSD. For another you have a known, fixed, window during which you can choose to "take" the option- not so FSD which still has no firm delivery date and hasn't for years... For another the cost to buy an option on something is generally far less than the current cost to actually buy the thing itself at time of order (otherwise there'd be no point in buying an option).

Likewise you appear to not understand the difference between them and a pre-order, which is what "buying" FSD actually has been the whole time- a wholly different process which almost universally allows the buyer to recoup any drop in price before delivery or allows them to cancel the original order and rebuy at the lower price prior to delivery.

 

[bhzmark]

Currently it's that you clearly have no idea WTF an option is or how they work- for one a person who can buy them can also SELL them-and can also sell the stock they might exercise the option to purchase....neither is true of FSD. For another you have a known, fixed, window during which you can choose to "take" the option- not so FSD which still has no firm delivery date and hasn't for years... For another the cost to buy an option on something is generally far less than the current cost to actually buy the thing itself at time of order (otherwise there'd be no point in buying an option).

Likewise you appear to not understand the difference between them and a pre-order, which is what "buying" FSD actually has been the whole time- a wholly different process which almost universally allows the buyer to recoup any drop in price before delivery or allows them to cancel the original order and rebuy at the lower price prior to delivery.

Oh please tell me about options!

Buying an option doesn't mean you have to be able to sell it. It just means you didn't purchase anything except the right to get the something else at a future date for a future price -- in this case, when it is available, for a zero price. But you didn't get the thing itself -- just the right to get it in the future, at your option. But you already bought the option and it didn't come with a right to put it to anyone else at any other price -- for that you need a willing buyer, or an additional (put) option.

Some people with sufficient cognitive resources will understand that. Other people will imagine a right to receive lower price changes retroactively without finding any contractual language to support that position and then will pollute these forums with their whining.

Some people simply do not have the cognitive resources to buy and own Teslas. Pls do us all a favor and buy something else. The price of your Toyota or Cadillac will likely go down too, but you won't hear about the dealer rebates.

 

[Jason_G]

I'm really at a loss. I don't consider myself to be wealthy, but I'm not getting worked up over the pricing drops. I agreed to pay the price I did. Prices change on every car, and nothing is certain. What does everyone want as an outcome? Do those that lost $1k-$5k in value on their Model 3 prefer that price drops not happen, and the company potentially go under from lack luster sales?

Hasn't their business model been very well documented as having current buyers help fund the growth and sustainment of the company starting with the roadster, then S, and X?