I bought my model 3 at the end of June. It was told to me that it was an inventory car with 472 miles. I was good with that since I could pick it up right away before the rebate got cut in half. So I finally get my paperwork mailed to me And try to register the car on July 25th. The DMV says that I can’t register it because the title has already been issued to a person in GA. I bought the car in Atlanta and I live in Mississippi. So I guess I bought a return vehicle which I am good with but now I am worried about not getting my federal tax credit. And now my model 3 is a 2 owner vehicle. Talked to the delivery center already and they are working on it. Has this happened to anybody else?
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I cannot register my “new” model 3
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If you weren’t sold a new vehicle and if Tesla is selling returns under the 7-day policy as new this is a whole new mess.
Interesting that someone else got a title issued already, that usually takes weeks or a month. Maybe that is in the process of being cancelled?
But the whole new/used status for a return is a major point.
Interesting that someone else got a title issued already, that usually takes weeks or a month. Maybe that is in the process of being cancelled?
But the whole new/used status for a return is a major point.
Question still is, are returns under the 7 day policy treated as new or used? I don’t think those should be ‘inventory’ which is ‘new’.
Anyone want to chime in here? 500 miles in someone else’s hands (not demo) seems over the limit for casual use but IANAL.
I would at least hope return cars get you a good discount or other consideration.
Anyone want to chime in here? 500 miles in someone else’s hands (not demo) seems over the limit for casual use but IANAL.
I would at least hope return cars get you a good discount or other consideration.
Maybe Tesla will be willing to cut you a check for the tax credit amount. I am not sure I would trust them to fix this well enough for it to not get flagged by the IRS next year. IRS bases the credit on the in-service date of the first owner, not the title.
I would be willing to bet that Tesla is so unorganized that they kept processing the title paperwork even after the return. I have heard of a couple other cases of folks showing a titled car when they bought an “inventory” vehicle and pulled the Carfax. My personal lesson from that thread was to always pull the Carfax for an “inventory” car.
"new" vs "used" has nothing to do with how many or IF miles are on a car. It has to do with the state of title. If a car has not been titled to an "end user consumer" itss "new" regardless of how many miles it has on it. If it has been titled, its "used". Entirely possible to have a "new" car with 3k miles on it, and a "used' car with 22 miles on it.
Its "likely" that this OP signed something that indicated the car was "used" as in previously titled. Its not like tesla doesnt make mistakes (lord knows they do), but there was likely something in what OP signed that says the car was used. If tesla actually made a mistake, they should be able to correct it.. but I am not sure how easy it is to unwind titling a car.
OP should check all paperwork they have VERY VERY carefully to look for the word USED ANYWHERE on it. If its there anywhere, OP may be out of luck.
On my MVPA it states a new vehicle. No where does it say used.
Well, if Tesla doesn’t make this right, then you may be able to go after them in small claims court for your damages (tax credit $$ and depreciation loss). Another option is to make a complaint to your state Attorney General office or whatever department handles consumer protections.
Hopefully Tesla will fix it, although it may take them a while.
Hopefully Tesla will fix it, although it may take them a while.
That is why you may want to consider asking for cash instead of a title fix. Or make sure they give you the Manufacturer certificate of origin (MCO) for the car - I believe that is what the IRS uses for evidence for a tax credit. Was the MCO in your registration packet?
I just filled out a 1 page form for the tax credit. Its "likely" the op would not have any issue applying for the tax credit next year because there is no verification required (unless you are audited)..... as long as no one else submits that same vin. Im not a tax professional however so..
Downside of Tesla being the dealer and the manufacturer I suppose. They can just print a new one if they can’t find the old one.
I would make copies of the MCO before you turn it in to title the car once Tesla fixes it. Then if the IRS audits you, you do have a paper trail that per Tesla the car is new. You could also consult a CPA to see what they say.
I know its not what you are asking, but that Vehicle Purchase Agreement looks dubious if I'm reading it correctly... a $28,431 trade-in tax credit, but only $466.93 in value from the turned-in vehicle? Or is that $28,431 what you originally paid for the turned in vehicle(which would be a really strange basis as well..)
Electricfan
Active Member
Having bought two new Teslas I have gotten $15,000.00 from the tax credits on them, and my memory is I just had to fill out the tax form listing my VIN. There was no live, online "check" of my VIN. So, I think you should be good. With a clear conscience you file for the credit. You did nothing wrong and have the paperwork to prove it, so no worries. If I were you, there is no way I wouldn't file for the credit. You bought what Tesla said was a "new" car. Its on Tesla if there's any error there. If you file and your return is "rejected" by the IRS, I would go to Tesla and show it to them and demand a check for the credit from them.
super20g
Member
If it was titled prior, you shouldn't be eligible to receive the tax credit whether you have a clear conscious or not. I would not file for the credit, but have Tesla refund the credit amount or make them buy it back and buy another... You are free to roll the dice. I wouldn't let Tesla put you in that position, though.
I think return should be allowed to be sold as new. But it should be considered “open box” and should be labeled as such. It should be deeply discounted. But I think it should qualify for tax credit (my opinion). Not sure what state or federal will legally do if it’s truly a 2nd owner though, w.r.t. tax credits.
Good luck.
Good luck.
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