Interested in Selling Model 3?

[swaltner]

I thought you had to hold the car for 3 years to keep the federal tax credit....Same with CA state credit.

No, while the California tax credit has a 3 year minimum ownership period for keeping the full credit, there is no 3 year limit on the Federal Tax Credit for EVs.

The instructions for IRS form 8936 clearly state that specific requirement as:

* You acquired the vehicle for use or to lease to others, and not for resale.

No time frame is given on the ownership period. Posting an advertisement that you are looking for someone to buy your yet-to-be purchased EV establishes intent that you purchased the vehicle for resale.

If someone with more money than brains came up to me on the 2nd day of ownership of my Model 3 and offered me 3x my purchase price, I'd be a fool to not sell the car, pay off the mortgage on the house with the excess cash and get back in line for another Model 3. In this situation, I would expect the IRS to audit, but would be ready to argue that the credit was taken in good faith.

It boils down to not making plans to resell the EV before the time of purchase and you're fine with the IRS.

 

[jmitchell]

I'm wanting to sell my reservation or car, depending on how it needs to happen to stay legal. I waited in line in California to get a spot in line before the reveal, but a few weeks ago I bought a CPO Model S, so now I don't need the Model 3.

 

[JeffK]

I'm wanting to sell my reservation or car, depending on how it needs to happen to stay legal. I waited in line in California to get a spot in line before the reveal, but a few weeks ago I bought a CPO Model S, so now I don't need the Model 3.

You can get the refund and then sell your $1000 for $1000...

 

[Billy D]

First day in line reservation from SoCal. I'll configure it for the earliest delivery timeframe, DM me.

 

[mrtian97]

same here, but I plan to go with the basic 220 miles battery, my expected time is Dec-Feb 2018. DM me if interested.
SoCal and Tesla owner, reserved on April 1, 2016

 

[206er]

3/31/16 early morning reservation holder in Seattle (non-owner) interested in getting you into whatever available Model 3 configuration you'd like. Happy to discuss offers - DM me if interested.

 

[Trebor Srevlis]

I made two reservations in the first 10 minutes of the store opening in MA. I ran some calculations on the number of stores open in my time-zone, and estimate that I am approximately 800 in line, not counting employee or any orders before they officially started reservations.

I meant to make one reservation, but the store employee submitted me twice. He said if I called him the next day, he would refund one of them. I later decided not to cancel the accidental one, as it was only $1000 and I didn't mind them holding on to it.

I now would like to find a way to profit off that tying up of the $1000.

Is it possible to take delivery, but not have them register the car? In MA, sales tax is paid when you register the car, so if I were to work with another buyer who could configure the car as they wished, the car could be delivered to me with dealer plates, and never be registered, So sales tax is saved, and then the person who buys it from me is the first title-holder, and can probably get the tax credit as a new car.

So now for the one for me. I wanted AWD, and now I see if I wait for that, I will lose the tax credit. So sad. I put in a 25 kW solar system, in part, to charge it.

 

[troyhouse]

Early Morning 3/31/16 reservations holder in Chicago (non-owner) interested in getting you into whatever available Model 3 configuration you'd like.

Happy to discuss offers - DM me if interested.

 

[instatech]

First day reservation holder from Boston, MA, reserved around 11 am morning local time. Can order the specs as required. DM if interested.

 

[cheekedave]

All these people offering to sell their reservation/car need to piss off. Cancel your reservation. This is line jumping. Let people who actually WANT the car get it sooner then. Idiots.

 

[DukeL17]

I'm in SoCal
Order on the first day
Delivery in November.

 

[Bthao]

I'm in Houston, TX. Ordered on First day, first 15 in line. Delivery in November. Can order the specs requested. DM if interested.

 

[octoad]

All you people looking to buy/sell a reservation are nuts, especially across state lines. You're asking to be scammed.

 

[SageBrush]

These people trying to auction off their reservations are idiots. Transfers are explicitly not allowed, so the reservation holder will have to take delivery, which would put the car and subsequently the title in their name.

If you then sell it to someone else, you would BOTH lose the fed tax credit...seller loses it due to "flipping", as it would be tax fraud, and the buyer loses out as he/she would then be the second owner. For the cherry on top, if the buyer were still stupid enough to make the deal, the resale value would take a nice hit due to it then being a 2 owner vehicle.

Greed and a low IQ are a recipe for disaster.

You forgot double taxation. This is starting to feel like a Darwinian moment

 

[Chewkaka]

#1 Reservation holder in the state of Arizona
Interviewed by the local news so unlike most, I have video proof of my spot in line
Wife changed her mind about buying her Model 3 reservation.
Nov-Jan / Jan-Mar / July/Sept

DM Me

 

[BluestarE3]

#1 Reservation holder in the state of Arizona
Interviewed by the local news so unlike most, I have video proof of my spot in line
Wife changed her mind about buying her Model 3 reservation.
Nov-Jan / Jan-Mar / July/Sept

DM Me

Have you read through the posts in this thread before yours about the non-transferability of reservations or the pitfalls of buying the car and then reselling it to a third party?

 

[sparkypete]

I probably won't go through with mine as I have an S coming but I think by the time they come to the UK there will be high volume production so not much of a queue for new orders so no profit to be made.

 

[VTengineer]

I am sure, once the final production information is released, the wait for delivery times will increase rapidly. I would place a deposit as soon as possible. No one I know is cancelling their orders....

Cancelled mine on Monday morning. Found a 2016 Model S 75D for about the same price I'd pay for my 3 and 14 months sooner

 

[tga]

Is it possible to take delivery, but not have them register the car? In MA, sales tax is paid when you register the car, so if I were to work with another buyer who could configure the car as they wished, the car could be delivered to me with dealer plates, and never be registered, So sales tax is saved, and then the person who buys it from me is the first title-holder, and can probably get the tax credit as a new car.

MA sales tax is generally paid at registration, but it due at the moment you take delivery in MA. MA (and CA) requires sales tax be paid on all vehicle sales that occur in their state, regardless of the buyer's state of residence and where the vehicle will be registered. This is different than most states, where registration is what triggers the sales tax event (and why most people speak authoritatively about "tax is only due at registration" when they are speaking about their home state, and ignoring the fact that there are 49 other states that just might do things differently ).

If you title (but not register) the car, you still need to pay sales tax with the title application. A title-only transaction does not relieve you of your sales tax liability (although your town will not collect excise tax on a non-registered car).

If you never title the car, you can't do anything with it (sell or register). If you decide to title at some point in the future, you will probably get hit with penalties and interest for late payment of sales tax.

You cannot "chain" bills of sale (ie, get a certificate of origin from Tesla and a bill or sale transferring it to you, then issuing a bill of sale to your buyer) unless all intermediary owners are MA licensed dealers. Non-dealer intermediaries must get a title issued in their name and pay sales tax. The federal tax credit will be lost - you clearly bought the car for resale (so you can't take the federal credit) and your buyer is not the original owner (so they can't take the federal credit).

The only way to do what you want to do is find a way to title in another state that won't collect sales tax on the title (but the federal tax credit will be lost) or get Tesla to issue the bill of sale in your buyer's name (good luck with that)

 

[jsrawa]

I'm surprised at all the offers here to sell or purchase. I just can't imagine how this will end up financially benefiting the seller and for so much legwork on their part. Not to mention if the buyer of their reservation backs out at the last minute and leaves them with the car.