EV incentives and Tesla purchasing process

[Enz295]

Can anybody relate?

I bought/leased multiple EVs before my model X: Fiat 500e, 2x BMW i3s.
With those purchases, the dealers always immediately applied the $7500, in deduction of the purchase price, and filed/transmitted the paperwork for the state rebate program. No questions asked!

With Tesla, I was on my own. No immediate $7500 deduction, even though it is systematically showing deducted off the purchase price, everywhere you look on Tesla's website.
And with the state, I have had to apply through the state website, in a lengthy process with multiple scans of a bunch of documents, which will end up not going through due to income exceeding the limit (they actually check). There has never been an income verification each time I purchased through regular dealers: BMW for example earlier this year!

Now when you purchase a $140K vehicle, $2500 shouldn't matter. But in a way it does!!
Not cool on Tesla's part.
What do you guys think?

 

[mattack4000]

No you should do some research and see how those rebates work. I do agree Tesla shouldn't be blasting the $7500 tax credit to the price of the car, they are subject to the person's taxes.

 

[Enz295]

I know how this whole thing works. That was not my point.
My point was that with regular dealers, they somehow get you ALL those rebates regardless. They just make it happen, period! Never had an issue.

 

[Big John]

Did you lease or buy? I bought an i3. I had to go through the same bothersome process as you describe BUT BMW gave me duplicates of all I needed and gave me simple instructions and discussed the process. When I got my X, crickets from the dealer. On my own. Still if you accept the bother, I did it all in a couple of hours. If I did it all over again, I could do it in 30 minutes. If you know how to scan documents to your computer, it is pretty easy. I scanned to USB and the transferred files to my laptop. I bristled but soon talked myself down that even at two hours of fumbling around, it was $1250 and hour. Actually, since I’m retired and have low income I’m getting $4500!! It is possible that on leased vehicles the dealer gets the rebate and takes it off the purchase price. But since my i3 purchase CA now has an income requirement. If you make too much you don’t get anything. This may take the dealer out of the process since they have no information to verify your income.

 

[Zaphod]

If you buy it, the federal credit is up to the buyer to file with the IRS, assuming they are eligible. For a lease, the federal tax credit is incorporated into the residual value. So it is benefiting the lessee, however it is not taken off the front end like other manufacturers do.

 

[boaterva]

I know how this whole thing works. That was not my point.
My point was that with regular dealers, they somehow get you ALL those rebates regardless. They just make it happen, period! Never had an issue.

They can't just "make it happen" on the Federal side unless they are loaning you $7500 until next April and also doing your taxes (or assuming you have that much tax liability).

On the state/local side, perhaps they can file for you with a limited power of attorney, like they do for registration processing. But for the Federal credit? No way.

 

[Krazaak]

I know how this whole thing works. That was not my point.
My point was that with regular dealers, they somehow get you ALL those rebates regardless. They just make it happen, period! Never had an issue.

That works if you're leasing. If you're buying, then the tax rebates are up to the buyer at tax time, but any state and local credits could in theory be processed by Tesla on your behalf if permitted.

North Carolina has decided that I should be charged more for buying an EV (to offset gas tax), so I was liable for an extra $130 in the registration. They actually tried to charge me for my Zero motorcycle as well and I had to contest that fee since the statute only refers to 4 wheeled vehicles.

The federal tax credit for both my Zero purchase and the Tesla are entirely on me though, since those are processed as part of my tax filing. Had I leased, the lease holder would have processed them instead.

Duke Power recently had a rebate incentive for the Nissan Leaf though ($10,000) and Nissan could have processed that for me had I decided to go that route. They still wouldn't have been able to do anything about the $7,500 federal tax rebate.

 

[Enz295]

I purchased the Tesla, instead of the i3 that is a lease. That explains it I guess.

 

[comanchepilot]

I purchased the Tesla, instead of the i3 that is a lease. That explains it I guess.

Yes - it does.

The rebate goes to the owner of the vehicle - since you are the owner of the Tesla you get the rebate.

Since the lessor was the owner of the other vehicles - they get the rebate and you get a cap cost reduction.