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How much can I expect to lose if I sell an untouched and brand new Tesla - No Longer Available

Discussion in 'Tesla for Sale' started by dred, Mar 24, 2014.

  1. dred

    dred Member

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    How much can I expect to lose if I sell an untouched and brand new Tesla

    Model S, Blue metallic, performance model, fully loaded, paid 113k. Ready to be picked up at store this week, but I need to sell it for personal reasons. Realistically, how much can I expect?
    Its basically untouched, undriven etc.

    List Date: 3/24/2014
    Location: Fairfax, VA, United States

    For more info, click here to view the original listing: How much can I expect to lose if I sell an untouched and brand new Tesla
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  2. Rifleman

    Rifleman Now owns 2 Model S's!!!

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    Honestly, talk with Tesla to see if you can get out of it. If you have already paid in full, you may not be able to, but if not, you would probably only loose your deposit. Either way, its probably worth giving your rep a call.
     
  3. dred

    dred Member

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    Nope..paid in full, so can't get out of it. Need to pick it up today or tomorrow. Want to sell it ASAP.
     
  4. Lloyd

    Lloyd Active Member

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    #4 Lloyd, Mar 24, 2014
    Last edited: Mar 24, 2014
    You will lose $7,500 federal tax credit (can't be purchased for resale). You will lose the 8% state tax, minus whatever is necessary to sell it as a used car. Likely 20K !!
     
  5. Rifleman

    Rifleman Now owns 2 Model S's!!!

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    In that case, I will give you 50k for it.

    On a serious note, I would still talk with your rep to see what they can do. I am sure you will take a hit on it, but you might be able to negotiate a smaller hit that selling it on the open market.
     
  6. stevezzzz

    stevezzzz R;SigS;P85D;SigX

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    Are you taking delivery at a Service Center? They sell inventory/loaner cars all the time, priced according to Tesla's formula: list price less so much per month ex factory and so much per mile (I forget the details). There's been a steady market for these cars, so you should base your asking price on the formula, less whatever you think will sweeten the deal so you can sell it quickly. Talk to the manager at the SC, explain your situation, and see if they'll keep the car at the SC while you sell it; you don't want to have to register it first, if you can help it.
     
  7. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Active Member

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    The OP already purchased it and does not indicate that they bought it for resale, and they would have to title the vehicle in order to sell it, so they should still be the one to claim the $7.5k tax credit.
     
  8. Lloyd

    Lloyd Active Member

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    The person claiming the credit HAS to be the one on the Tesla sales contract. The only way to save that is to get Tesla to title it to the buyer as the original owner.
     
  9. Brittt1

    Brittt1 Member

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    As stated you need to take 7.5k and 5% off as it's basically used at this point. The other issue is that it isn't as attractive at only that discount as the person buying is a second owner and finance rates aren't as attractive for used vehicles. Ping me with the configuration, I'm in fairfax/Tyson's.
     
  10. Trnsl8r

    Trnsl8r Blue 85kwh since 12/8/12

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    Since he hasn't taken delivery yet, that may very well be possible, if the sales person at Tesla is nice about it.
     
  11. Woodland1

    Woodland1 Member

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    I just spoke with my Tesla rep, and PM'd you. Maybe something to be done, depending where you are in the deal at this time.
     
  12. 772

    772 Member

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    This seems like a desirable/popular configuration so I doubt you'll lose much beyond the sales tax amount, since the potential buyer can have the car right away instead of waiting.
     
  13. Shumdit

    Shumdit Member

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    Has he/she posted the exact configuration? I do not think a full loaded P85 would go for only $113k from Tesla so I think the "fully loaded" part might be a slightly inaccurate claim?
     
  14. 772

    772 Member

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    You're right, it's over 120k fully maxed out for a P85, but if you leave out the extended leather and rear seats, it's $115k, so almost fully equipped.
     
  15. Chris Naps

    Chris Naps Member

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    #15 Chris Naps, Mar 24, 2014
    Last edited: Mar 24, 2014
    He can't claim the tax credit if it is for resale. It has not even been a week before he has received the vehicle.
    "To qualify for the US Federal Tax Credit, the new vehicle must be purchased by the taxpayer, and not purchased for resale. The credit is applied when the taxpayer completes their annual tax forms. Qualification is contingent on Adjusted Gross Income."
    If he applies for the tax credit and sells it for a profit or break even with the tax credit, then that in itself is against the law. The bottom line is that he cannot claim the tax credit.

    The maturity rate under federal law for the EV tax credit is three years.

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    Regardless of the fact... The car will sell PERIOD. The real question is to the OP - How fast do you want to sell it? Are you willing to wait a while in order to break even? If so that can take a few weeks/months, and possible longer. If you drop the price a few thousand then you should be able to sell it A.S.A.P.

    The thing is, just because it has low miles on it, it does not make it a brand new car. Each new owner lowers the resale value of the car - especially with electric cars because no one knows how crazy the previous owners drove the car and that inturn can cause reliability issues. Moreover, two owners on a Model S can look bad to the eye of a buyer more than a typical ICE vehicle.
     
  16. Lloyd

    Lloyd Active Member

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    Maybe, but Tesla has been open that they will not allow sales of a position/order.

    - - - Updated - - -

    How about taking a note on it, enjoy the car, keep the cash and the tax credit....? Alliant is very quick.
     
  17. Todd Burch

    Todd Burch Electron Pilot

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    If "Personal reasons" means you need some quick cash, but you still want to drive a Model S...I'll swap my S85 with your P85 and give you cash on top of that. If interested I'd like to talk...
     
  18. techmaven

    techmaven Active Member

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    From the IRS: http://www.irs.gov/Businesses/Plug-In-Electric-Vehicle-Credit-(IRC-30-and-IRC-30D)

    My impression was that as long as the OP does not claim the credit and does not drive the car ("original use") then the subsequent buyer can claim the tax credit. Is that not the case? Is it possible to sell the car w/o ever registering it? I would have assumed so, so the sales tax also doesn't apply, as the subsequent buyer would pay the sales tax if any when he/she registers the car (could be an out of state purchaser with no state sales tax).

    As a practical matter, the IRS keeps a database of VINs, so as long as no one else registers the VIN...

     
  19. shrink

    shrink Member

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    That's not true. I've sold an EV (a Nissan LEAF) less than a year after purchasing it and claimed the full $7500. That was 2 years ago. Neither my CPA nor the IRS had any problem with it. There is nothing on this page from the IRS stipulating any sort of length of ownership requirement:

    http://www.irs.gov/Businesses/Plug-In-Electric-Vehicle-Credit-(IRC-30-and-IRC-30D)

    However, I believe the California Vehicle Rebate Project (CVRP) does indeed require registering "the new vehicle with the California Department of Motor Vehicles (DMV) for a minimum of 36 consecutive months* for use in California."

    Frequently Asked Questions | CCSE

    Other states may have similar length of ownership requirements.

    I don't think selling his car and claiming the federal tax credit is anything blatantly illegal. Sounds like the OP truly intended to buy the car for personal use and the OP is certainly not buying it now for resale, especially since there is an expected loss. Sounds like the OP is selling something he bought for personal use because of a changed financial situation.

    Additionally, from the IRS website:

    I'm guessing once you buy it from Tesla, it needs to be registered and the title is yours, so the vehicle is considered "acquired" and only the OP can claim the federal tax credit. Perhaps that will help with pricing should you indeed decide to sell.

    As always with such matters, probably best to check with your CPA, but this is simply my reading of it.

    I'm sorry to hear your in this situation. Best of luck with whatever you decide to do.
     
  20. HankLloydRight

    HankLloydRight Fluxing

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    I would agree with shrink. How would the IRS be informed that you sold the car within any time period?

    AFAIK, nobody reports used car sales to the IRS (unless you're reporting a gain on the sale, and even then, I'm not sure).
     

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