voip-ninja
Give me some sugar baby
That's a good point.... most policies these days though do include GAP insurance.
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Model 3 monthly Payment?
- Thread starter Garlan Garner
- Start date
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- Model 3
That's a good point.... most policies these days though do include GAP insurance.
An insurance company won't cut you a check for less than the car is worth. They may cut you a check for less than you owe, but that is an different story.
Absolutely, I should have included that in my post as it’s a very important aspect.
I'm actually wondering, with huge preorder count and slow catch up (1 year), if you total m3, will there be a need for gap insurance? I'm thinking they will have to cover full loan because there aren't any cars like m3 on market. If someone can help out with their insight, would be great.
So technically we can make money on this considering 1) resale will likely be higher than loan due to big demand 2) ev rebate which I'm expecting since ordered attending in line first day.
You want to make money by intentionally totaling your car? Isn't that some form of insurance fraud?
I know, I'm a buzzkill.
I'm brand new but I registered just because I think a LOT of people are confused about the $7500 tax credit, and it's REALLY IMPORTANT to this payment discussion.
That tax credit is "nonrefundable." The tax credit will only reduce an amount of tax that you OWE at the end of the year. So, it is NOT money that you are going to get to use for the car. It's just money that you won't have to pay the IRS if you have a balance due at the end of your taxes. That money should not at all be used in your monthly payment calculations.
That tax credit is "nonrefundable." The tax credit will only reduce an amount of tax that you OWE at the end of the year. So, it is NOT money that you are going to get to use for the car. It's just money that you won't have to pay the IRS if you have a balance due at the end of your taxes. That money should not at all be used in your monthly payment calculations.
DR61
Member
So you've registered to spread incorrect info, then. Congratulations on wasting your time, and ours.
Zaphod
Galaxy President (former)
SageBrush
REJECT Fascism
Tax liability is reduced, which you are confusing with amount owed. You harbor a common error but your confidence is ... misplaced.
Not this again. Please read up tax liability vs. tax withholdings.
The IRS can owe me (due to me having the wrong withholding) $1k. But if my tax liability (the amount I need to pay uncle sam in taxes) is above $7,500 - then the IRS would send me a check for $8,500.
Please consult a CPA, your information is dead wrong.
As others have pointed out, you are wrong concerning the refundability of the $7500 tax credit. You are correct that it shouldn't be used for monthly payment calculations as the buyer will still have to pay full price and then apply for the refund when they do their taxes in the following year.
When I did calculations for my monthly payment, I did it without subtracting the $7500 from the originaly price. I also did a "what if" scenario to see how much my payments would go down if I refinanced my load after receiving the state and federal tax refunds.
Btw, my federal tax refund was $7500 higher and my state tax refund was $6000 higher thanks to my Tesla purchase.
Interesting. I've seen several sources stating the opposite, and my tax person said it would not increase my refund. This is good news. Could you point me in the direction of a credible source? Or something that could help me understand liability vs withholding?
As others have pointed out, you are wrong concerning the refundability of the $7500 tax credit. You are correct that it shouldn't be used for monthly payment calculations as the buyer will still have to pay full price and then apply for the refund when they do their taxes in the following year.
When I did calculations for my monthly payment, I did it without subtracting the $7500 from the originaly price. I also did a "what if" scenario to see how much my payments would go down if I refinanced my load after receiving the state and federal tax refunds.
Btw, my federal tax refund was $7500 higher and my state tax refund was $6000 higher thanks to my Tesla purchase.
That's great news!
Liability vs withholding is pretty simple. Liability is how much you owe. Withholding is how much you choose to take out of your paycheck each month. If you calculate it perfectly, at the end of the year your liability would equal your withholding, and you wouldn't owe any money or get a refund. If liability > withholding, you owe money. If liability < withholding, you get a refund back.
The EV tax credit reduces your liability. If, for example, your liability is $7500 in the year you purchased the EV, it would get reduced to $0. The amount of refund you get would be exactly the same as your withholding. The only tricky part is that the refund will never reduce your liability to less than 0 - you will never get more money back then you paid in.
