Discussion : All discussion regarding Model 3 and Tax credit in model 3 subforum

[samuel317]

I ordered a model 3 performance in grey with nothing else. I will be picking it up next week but looking at the tesla agreement pdf is making me worry.

The price of the car when i ordered was $54990. But in my tesla agreement pdf where it shows the price of the car, shows subtotal as 54990 but total price as 56630. that includes the order fee and destination fee(1390.00). Does that mean my car exceeds the 55k ev tax credit qualification??? In the next page, the total vehicle price(Cash price of motor vehicle, options, accessories and fees.) shows it at 56630 too.
I'm looking online, some website say delivery fee includes in the MSRP price.

thanks

 

[samuel317]

Nevermind. i found in the irs website that destination fee is not included and other fees are not included in the price towards the qualification.
"MSRP is the retail price of the automobile suggested by the manufacturer, including options, accessories and trim but excluding destination fees. It isn't necessarily the price you pay."

 

[discodanman45]

Regular dealerships are even worse than Tesla and a PITA to deal with. I hate salespeople and the nonsense with dealerships. Was looking at a Chevy Bolt EUV, but all the dealerships are above MSRP, and they have ludicrous things like security packages that come on all cars for $1000. Then you have to sit with the finance people that work on commissions as well. You need to hear about all the add ons, GAP insurance, and extended warranties. Heck, when I bought my 2017 Bolt EV they tried to sell me unlimited oil changes. I won't ever step foot in a dealership ever again.

 

[MacO512]

Regular dealerships are even worse than Tesla and a PITA to deal with. I hate salespeople and the nonsense with dealerships. Was looking at a Chevy Bolt EUV, but all the dealerships are above MSRP, and they have ludicrous things like security packages that come on all cars for $1000. Then you have to sit with the finance people that work on commissions as well. You need to hear about all the add ons, GAP insurance, and extended warranties. Heck, when I bought my 2017 Bolt EV they tried to sell me unlimited oil changes. I won't ever step foot in a dealership ever again.

Agreed. I'm a great negotiatior, but I don't want to deal with wasting my time in a dealership. Even if I could save a thousand dollars.

Crazy to think of but can't pay me a thousand or more dollars to spend a few hours at their business. How shitty is their business model. I'll be glad to see them and associates brands go out of business.

 

[wildm3p]

Situation I'm in:

Partner qualifies for tax credit but never drives (has license). I do not qualify.

If I'm the only one insured, will my partner still be eligible to receive the tax credits?

 

[Tam]

Situation I'm in:

Partner qualifies for tax credit but never drives (has license). I do not qualify.

If I'm the only one insured, will my partner still be eligible to receive the tax credits?

This is my understanding: The owner gets the Federal credit with qualified parameters and VIN. There’s no requirements for driver license nor insurance.

 

[MeanGene]

Regarding the current 55k threshold for ev credit...does 55k refer to the MSRP of Tesla or the total purchase price? I need this clarification because I will be rolling over some negative equity into my order, and the equity will put the total purchase price past 55k. I don't need financial advise regarding negative equity. Thanks guys.

 

[ZenRockGarden]

MSRP, not including software options (so I don't think FSD or AB matter)

 

[MacO512]

Situation I'm in:

Partner qualifies for tax credit but never drives (has license). I do not qualify.

If I'm the only one insured, will my partner still be eligible to receive the tax credits?

You could have partner buy it solely in their name. Can later title it in both your names then add to your insurance. The few weeks from delivery until titled could be tricky, here in Texas I think owner needs to add to their insurance prior to delivery.

Maybe easier to just list both of you as owners when buying from Tesla but have partner listed first.

Might be best to just call your insurance and see what they need to add it to your policy. Then see if that works with partner buying it.

Or just have partner get Tesla insurance until it's titled in both your names.

 

[Clover]

Regarding the current 55k threshold for ev credit...does 55k refer to the MSRP of Tesla or the total purchase price? I need this clarification because I will be rolling over some negative equity into my order, and the equity will put the total purchase price past 55k. I don't need financial advise regarding negative equity. Thanks guys.

That is not the purchase price you are referring to. That is your loan value. If you're going to be upside down in it, get GAP insurance. You don't want to end up paying for a wrecked car when your loan is grater than the insurance will pay out. Your negative equity has absolutely nothing to do with the purchase price. You did not ask for financial advice, but most people can benefit from it and only fools ignore it.

 

[MacO512]

It doesn't include destination charge or order fee either for the $55k limit.

 

[wildm3p]

This is my understanding: The owner gets the Federal credit with qualified parameters and VIN. There’s no requirements for driver license nor insurance.

Ah that'd be ideal.. but just saw this. Does that mean insurance for the person the car is registered under?

 

[wildm3p]

You could have partner buy it solely in their name. Can later title it in both your names then add to your insurance. The few weeks from delivery until titled could be tricky, here in Texas I think owner needs to add to their insurance prior to delivery.

Maybe easier to just list both of you as owners when buying from Tesla but have partner listed first.

Might be best to just call your insurance and see what they need to add it to your policy. Then see if that works with partner buying it.

Or just have partner get Tesla insurance until it's titled in both your names.

If I don't need the title under my name as well, looks like it might be best to just add my partner to the insurance for delivery?

 

[Tam]

Ah that'd be ideal.. but just saw this. Does that mean insurance for the person the car is registered under?

That procedure is not from the IRS.

It is from Tesla whether there is a tax credit or not. Unrelated to tax credit.

Tesla wants the car insured in case the car would collide within its property while heading home from its parking lot.

You are correct by adding the owner's name to the insurance policy.

 

[MacO512]

If I don't need the title under my name as well, looks like it might be best to just add my partner to the insurance for delivery?

Yeah you could probably do that in order to get delivery done. The issue is if you dont get the title in your name and you drop partner from your insurance later I'm not sure your insurance will let you have a vehicle on your policy that is titled to someone else. Thats why I'd probably title it in both your names.

 

[wildm3p]

Yeah you could probably do that in order to get delivery done. The issue is if you dont get the title in your name and you drop partner from your insurance later I'm not sure your insurance will let you have a vehicle on your policy that is titled to someone else. Thats why I'd probably title it in both your names.

Ah I see that makes sense. Would my partner still be eligible for the tax credit if I were to add myself to the title afterward? (I do not qualify)

Looks like I may need to hire a CPA instead of bothering all of you folks haha

Thanks in advance!

 

[MeanGene]

That is not the purchase price you are referring to. That is your loan value. If you're going to be upside down in it, get GAP insurance. You don't want to end up paying for a wrecked car when your loan is grater than the insurance will pay out. Your negative equity has absolutely nothing to do with the purchase price. You did not ask for financial advice, but most people can benefit from it and only fools ignore it.

Already on that....can't help being upside down...need to get out of the current vehicle, it's a nightmare

 

[MacO512]

Ah I see that makes sense. Would my partner still be eligible for the tax credit if I were to add myself to the title afterward? (I do not qualify)

Looks like I may need to hire a CPA instead of bothering all of you folks haha

Thanks in advance!

I believe yes.

 

[discodanman45]

At this point I am waiting to see how California handles the CVRP until I purchase. I think people are too worried about the Federal Tax Credit running out in March right now, and FOMO is real. Come March, I have a feeling that the IRS will push back the date again. It is an absolute mess with the bill and the rate that our government gets things accomplished, it will be a while before things are changed.

 

[Irpilot]

This forum has a totally different take on how the rule changes take effect. On the Ionic 5 forums, the consensus was that if you had a purchase agreement, and a VIN, because a vin was needed for a purchase agreement, you were grandfathered under the previous $7500 credit even if your vehicle was delivered after the new green act took effect. This was even reiterated by Hyundai USA as a letter to all their dealers. I see my deposit as a purchase agreement, and once I get a VIN I meet all the criteria that the Ionic 5 purchasers did when they were trying to beat the bill signing date a few months ago. To me if I meet those 2 criteria, I would qualify for the credit even if my Model 3 is delivered after the bill is signed. I'm not saying one is right and one is wrong, but one does have the backing of Hyundai behind it. Tesla told me to go to the IRS website for clarification... They aren't really giving any guidance whatsoever.

Here's the link to the previous credit guidelines. I don't see why this round of changes would be any different. Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service