If you do not mind, Please post your trade in offer from Tesla so we can compare note

[Lloyd]

Haven't gotten my quote back yet, but one item noted was that the remaining years on the service plan are not transferable...

That's not what we were told when we purchased the plans. We were told that they WERE transferable, and in fact they were transfered to the owner of the last Model S I sold!

They may not give you credit for them on a trade in, but if you sell the car privately they will go to the new owner.

 

[rcc]

Trading in NJ -- no sales tax. Yes I get a new Federal tax credit.

Can we add "owning a tesla with no sales tax" to the list of reasons to live in NJ (its not that big a list )

If it were me, I'd make a quick call to a good tax person to see how the IRS was interpreting that language because there's a chance you may lose the credit on the first car.

The IRS language on the electric vehicle credit says, "The vehicles must be acquired for use or lease and not for resale."

In this case, you're buying a car, selling it within a few months and then buying a new one. You are using the car while you had it but if you sell it, the holding period was really small. Are you sure the IRS will give you the credit on both cars? Knowing the IRS, I'm not.

The CA state EV credit language doesn't have this ambiguity, btw. They have an explicit holding period. If you give up the car too soon, you lose the CA credit ($2500).

 

[Bill r]

Service plan can be transferred. I have it in writing

 

[Cal1]

2013 P85 26kmiles $106k Original MSRP Tesla offer: $65,600

I think we should have a separate thread titled "What would the ideal Tesla trade in program look like. I would give folks a chance to say what they would like to see, not what they are actually getting. Oh yea I think it's a given we will lose on any additional $'s we've spent e.g. extended service etc. Kind of like remodeling a home and not realizing you'll probably not get that $ back in your resale.

 

[pmppk]

"You may not transfer this Agreement to a vehicle dealer or to the customer of a vehicle dealer. "

It is only transferrable in a private sale.

 

[mknox]

Service plan can be transferred. I have it in writing

Probably means not transferrable into cash when you trade. I've traded in cars with extended warranty or service plans still active and got nothing for it on trade, but know for a fact the new owner got it in at least one case.

 

[breser]

If it were me, I'd make a quick call to a good tax person to see how the IRS was interpreting that language because there's a chance you may lose the credit on the first car.

The IRS language on the electric vehicle credit says, "The vehicles must be acquired for use or lease and not for resale."

In this case, you're buying a car, selling it within a few months and then buying a new one. You are using the car while you had it but if you sell it, the holding period was really small. Are you sure the IRS will give you the credit on both cars? Knowing the IRS, I'm not.

The language in my opinion depends on your intention at the time of purchase. The fact that you've now changed your mind shortly after buying and are selling doesn't really change that intent.

The IRS tax credit also doesn't require that the vehicle be registered, only that the title passes under state law. I could be wrong but I believe that occurred as soon as he signed the paperwork at delivery.

Details on the tax credit here:
Internal Revenue Bulletin - November 30, 2009 - Notice 2009-89

 

[andrewket]

2013 Model S P85+
Took Delivery 6/23/2013
Mileage = 14,500 miles
Purchase Price = $115,220
Trade In Offer = $70,000

Taking off the Federal Tax Credit of $7,500 and the Louisiana Alternative Fuel Credit of $13,600 means my purchase price was $94,120. I believe you have to deduct those because if I tried to sell it directly to a third party those are credits they would get if they were to buy new (i.e., they would pay $94,120 after incentives for my car brand new from Tesla).

On top of that, Louisiana offsets the purchase price by the trade in value when computing sales tax. In my case that's 8.75% on $70,000 or $6,125. Therefore, to come out the same in a private party sale I would need to get $76,125 for the car.

I don't find these numbers that far off from my previous luxury vehicles that I have traded in after short periods of ownership.

Mike

You're not in bad shape because of the LA credits and tax treatment.

 

[lolachampcar]

We have enough data on early P+ deliveries to figure out how Tesla is pricing these trades. They appear to be consistent.

 

[gpetti]

I initiated the request on the website and someone called the next day to get more details - approx 15 questions about your vehicle condition. About 3 hours later I got a PDF with the trade in figure. They said that the figure may improve if you submit photos of your car.

Interesting. they didn't ask me anything about the condition though I did volunteer that there were two minor blemishes (on my Xpel wrap). They also didn't ask for pictures.

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"You may not transfer this Agreement to a vehicle dealer or to the customer of a vehicle dealer. "

It is only transferrable in a private sale.

So if we trade in to Tesla, Its not transferrable?

I'm wondering if I can transfer my service plan to my new car. I'm guessing not but I'll ask if nobody else has.

 

[K85D]

K85D Northern VA
$81,000 for S85 delivered Sept 13 2014 with a $93.7K MSRP Sold to Tesla - Ordered 85D

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Should have also put 1,002 miles

 

[MassModel3]

I have had my used Model S for 22 days, leaving me 38 days to decide if I want to purchase a service plan. I emailed my delivery specialist to ask if the prior owner had a service plan that might have transferred to me, and his response was: When the car was purchased back from the previous customer, they also reimbursed the old service plan to the previous owner.

 

[djdotcom]

He won't get the first tax credit because he hasn't registered he car. That also begs the question of how you legally sell it. I'm not sure tesla will take the manufacture's certificate of origin.

I have been trying to get an answer on this but the DC sales staff seems to be too busy to deal with all the action right now. I had to harass them to get my quote earlier this week which came back at a good price point but according to the form didnt include all of the options on my car. When i asked them to resubmit with my options the quote was $4000 LESS. Go figure. My initial quote is still good for another two days but this all seems so arbitrary. I had been counting on claiming the tax credit and avoiding sales tax by trading in during the first 30 days of ownership but I guess that was flawed thinking.

 

[tdiggity]

It's been a week and I haven't heard back after the initial survey (condition, mileage, etc)

 

[rcc]

The language in my opinion depends on your intention at the time of purchase. The fact that you've now changed your mind shortly after buying and are selling doesn't really change that intent.

The IRS tax credit also doesn't require that the vehicle be registered, only that the title passes under state law. I could be wrong but I believe that occurred as soon as he signed the paperwork at delivery.

Details on the tax credit here:
Internal Revenue Bulletin - November 30, 2009 - Notice 2009-89

The problem is that it all depends on whether the IRS's interpretation of the language is the same as yours. I would agree with you but I've heard of enough cases where the IRS interpreted ambiguous language in interesting ways that I'd want to check with a tax person to be sure.

FWIW, I would also agree that you don't have to register the car to get the credit since the language says "put into service", if I recall correctly. But who knows how the IRS defines that...

Do what you want to do. *I'd* call a tax person.

 

[CRASCH]

P85+ (Pearl White / Tan / Obeche Gloss)Every option except Paint armor
3 weeks old 650 Miles

Sticker $132,170
Other Taxes ~$3,500
Tax Rebate $13,500
Net Paid $118,670

Tesla Trade in offer $105,000
Net walk away cost $13,670
Net walk away cost including Taxes at time of purchase $17,170

 

[redi]

It's been a week and I haven't heard back after the initial survey (condition, mileage, etc)

+1 still in line for me too.

 

[breser]

FWIW, I would also agree that you don't have to register the car to get the credit since the language says "put into service", if I recall correctly. But who knows how the IRS defines that...

I gave a link to their most recent bulletin on the EV tax credit. It says you have to acquire the car and they define acquiring it as when the title passes according to state law. Nothing about putting it into service.

Do what you want to do. *I'd* call a tax person.

Unless there's been a dispute or the IRS has been asked for a ruling they probably don't know either. I wouldn't draw the IRS' attention by asking them either.

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I have been trying to get an answer on this but the DC sales staff seems to be too busy to deal with all the action right now. I had to harass them to get my quote earlier this week which came back at a good price point but according to the form didnt include all of the options on my car. When i asked them to resubmit with my options the quote was $4000 LESS. Go figure. My initial quote is still good for another two days but this all seems so arbitrary. I had been counting on claiming the tax credit and avoiding sales tax by trading in during the first 30 days of ownership but I guess that was flawed thinking.

I'd take that initial quote. To be frank it seems too good to be true. There's another Virginia quote that's quite a bit lower than yours and only has 27 more miles than what you listed.

In fact your quote inspired me to ask for a quote. I didn't really figure it would make sense but given your quote it might make it worth my time. Tesla called today and they're supposed to give me a quote on Monday.

 

[Pilot4hire]

I don't understand why we even mention the Fed Tax Credit.
I have purchased 2014 85, blue, gray 21", sunroof, tan leather, Air, Stereo, tray, Tech, anyway, sticker $100,700.00 It has less then 9K miles, like new, they offered $72K in trade for a smilier "D", it's in the shop getting tinted windows, bra, about $1.500 with Tesla mats etc, $90K I would deliver (drive to where ever)

 

[ahimberg]

Feb 2013 Model S60 with 15k miles, (60kWh, Brown, Tech package, pano, air, supercharger) - original total price 76k (78k - 2k credit for supercharger access)
Trade in offer: 48600, offer good for 10 days

so 76k-7500-48600 = 19900 depreciation to me, and if I were to upgrade to an 85D it will be a few months further lowered waiting for delivery