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Model S trade in vs sale for model 3, My experience this week

Discussion in 'Model 3: Ordering, Production, Delivery' started by hankinjax, Feb 15, 2018.

  1. hankinjax

    hankinjax Member

    Joined:
    Feb 11, 2016
    Messages:
    38
    Location:
    Jacksonville fl
    Just got my model 3. At $51k it is a good car. With the tax credit and final price around $43 it is phenomenal! I sold my model S. Tesla offered me $55k for my trade in. I sold it to an online company, Vroom.com for $69k. You are reading that right. Not only was it much more money it was incredibly easy. I did everything online. I did not even have to go to dealer. They came to the house to pick it up last night.
     
    • Informative x 4
  2. Asymmetry

    Asymmetry Member

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    Jun 22, 2015
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    Location:
    Australia, Sydney
    Nice ad, needs pic of a bimbo on a telephone
     
    • Funny x 2
  3. SBerg

    SBerg Member

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    Aug 13, 2013
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    Location:
    Solvang, CA
    How were you paid the $69K?
     
  4. timk225

    timk225 Active Member

    Joined:
    Mar 24, 2016
    Messages:
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    Location:
    Pittsburgh
    As I understand it, a $7500 tax credit does not mean you are getting an extra $7500 back in your refund. It just reduces your taxable income by $7500, so however much of a difference in your refund that is.

    EDIT - I looked up the IRS tax tables for married filing jointly. With the $7500 tax credit dropping taxable income from $62,500 to $55,000, that means an extra $1125 back in your refund.

    So the $7500 tax credit is nowhere near as good as it sounds.
     
    • Disagree x 12
  5. N8Howell33

    N8Howell33 Member

    Joined:
    Jan 22, 2018
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    Location:
    Salem, OR
    It is a credit meaning its a dollar for dollar reduction it is NOT a deduction (a percentage). The only way you wouldn't get the full credit is if you owed less that $7,500 in federal taxes.
     
    • Like x 2
  6. Zero CO2

    Zero CO2 a long term goal

    Joined:
    Apr 24, 2017
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    Location:
    NYC -Staten Island
    credit means a credit against what you owe in federal taxes ... what you describe above is a deduction
     
  7. Phillyasian

    Phillyasian Member

    Joined:
    Feb 12, 2018
    Messages:
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    Location:
    Philadelphia
    That's not right. It's a direct credit. That's why there's always the discussion that you need to have a tax liability of $7500 in order to get the full advantage. IF for example your Federal Tax liability is only $5,000 you will only get $5000 worth of the credit and you lose the other $2500. It doesn't carry forward nor do you get a check .
     
    • Like x 1
  8. deonb

    deonb Supporting Member

    Joined:
    Mar 4, 2013
    Messages:
    3,783
    Location:
    Redmond, WA
    Not correct. I've taken this twice before. It reduced my taxes due, not just my taxable income, by $7500 each time.
     
  9. TexasEV

    TexasEV Well-Known Member

    Joined:
    Jun 5, 2013
    Messages:
    7,586
    Location:
    Austin, TX
    There’s your problem— you don’t understand what a tax credit is.
     

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