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EAP post delivery update subject to NYS sales tax?

Discussion in 'Model 3' started by Lido, Apr 13, 2018.

  1. Lido

    Lido New Member

    Joined:
    Oct 21, 2017
    Messages:
    4
    Location:
    Long Island, NY
    Hello all,
    I Currently have a Model S 85D with AP1 and can not imagine going without it. I recently configured my wife's Model 3 and I would like to see if there is potential savings in waiting for the federal tax credit to pay for Enhanced Auto Pilot.

    I will be either rolling the $5000 into the financed portion of my purchase at delivery and paying the additional associated tax on that option or waiting to update after.

    Is there anyone in New York (Nassau County) who has done the update after delivery? I am curious if it is subject to local sales tax.

    Thanks
     
  2. Graffi

    Graffi Member

    Joined:
    Apr 30, 2017
    Messages:
    713
    Location:
    San Diego, CA
    Do not know NY, but in CA it most definitely WILL be taxed when you buy it, either at purchase of car or when you pay TESLA for it afterwards. The Tesla invoice will include the price of the EAP and sales tax. Hopes this helps.
     
  3. Snow Drift

    Snow Drift Slip Start: [Activated]

    Joined:
    Feb 10, 2016
    Messages:
    1,635
    Location:
    Long Island
    Sales Tax is applied to buying just about everything in New York. Why would you avoid it by buying EAP in the future?
     
  4. PARNY

    PARNY Member

    Joined:
    Aug 28, 2017
    Messages:
    35
    Location:
    Roslyn, NY
    Not sure about the M3 but buying EAP after delivery on the MS costs an additional $1K. If it is the same on the M3, waiting to add it later will cost you more than any potential sales tax savings. I live in Nassau County and I pay sales tax on everything I buy from Tesla, including the extended warranty, so I am pretty certain you will pay sales tax on the upgrade if done later.
     
  5. Lido

    Lido New Member

    Joined:
    Oct 21, 2017
    Messages:
    4
    Location:
    Long Island, NY
    Since the upgrade was for software I thought it might be possible. Based on loan rates, the interest paid on an extra $5000 of principle would be between $300 and $390. The additional tax savings would have made waiting to upgrade more than worth it. You could also benefit from a credit card promotion for some free points since the upgrade is done with a card.


    Thank you all for your input!
     
  6. SageBrush

    SageBrush 2020: Drain the Sewer

    Joined:
    May 7, 2015
    Messages:
    11,121
    Location:
    New Mexico
    If you wait all those years before buying the upgrade.

    The only way delay could ever pencil out is if the cost comes down, but that seems unlikely in the 3 year horizon.
     

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