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New Model 3 -- $9k off Design Studio price -- Your design -- no gimmicks

Discussion in 'Tesla for Sale' started by HankLloydRight, Aug 28, 2018.

  1. HankLloydRight

    HankLloydRight No Roads

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    #1 HankLloydRight, Aug 28, 2018
    Last edited: Oct 25, 2018
    NOTE: DEAL IS COMPLETE. See last post here: New Model 3 -- $9k off Design Studio price -- Your design -- no gimmicks

    Hello everyone!

    I have a referral powerwall 2 credit with Tesla I need to use on a Model 3. I have a "Day One" reservation I made at the first Model 3 Reveal event held in March 2016. My wife and I were waiting for the AWD version, but we've decided to hold off a year or two due to other priorities.

    So here's the deal. Like I said, no games or tricks. In addition to passing through the full $7,500 federal tax credit to you, I'm also adding a $1,500 bonus/discount for the buyer.

    There are several ways to do this, so I'm open to suggestions or modifications to the below.

    Proposed Method: I buy the car, you get it for $9k off new price.
    • You design the Model 3 of your choice
    • The final cost to you would be the Design Studio final price, plus the $1,200 Destination fee minus $9,000.
    • You send me a 30% upfront deposit and put the remaining 70% into escrow at escrow.com (they charge a 0.89% fee we would split)
    • Upon receiving your deposit and confirmation of the escrow, I order the M3 in the Design Studio using my reservation/account.
    • I buy the Model 3 outright, and take delivery in CT (likely Mount Kisco, NY).
    • I drive it home (20 miles) and park it in my garage
    • You come pick it up (or have it shipped) and you release the remaining 70% in escrow to me. If you're having it shipped, the escrow would need to be released before shipping.
    • I sign and overnight you the title as soon as I receive it from the CT DMV (could be two or three weeks).
    • Or you can wait for the title to arrive and then come pick up or ship the car and get the signed title at the same time (and release the escrow at that time).
    • You register the car and send back my plates.
    • You can not claim the $7,500 federal tax credit -- that's built into the $9,000 discount
    This is a good method if you might not have income or tax liability to qualify for the full $7,500 tax credit. And you get it right away and don't have to wait until next year to realize the tax break. Plus the $1,500 bonus.

    There's also another bonus in local sales tax savings for the you, since you'd be paying sales tax on the post $9,000 discount amount and not the Design Studio price. So in the end, it's like saving over $2,000 off the price of a new Model 3.

    Here's an example of the above for an AWD Model 3, Deep Blue Paint, 18" Aero wheels, Premium Black interior, and EAP:

    upload_2018-8-28_16-3-1.png


    There is an alternative where you buy the car direct from Tesla (we would both be listed as owners, initially) and you take the tax credit directly (plus the $1,500 bonus from me), but we can discuss the details of that in PMs if you are interested in this alternative. In this case, you would take delivery of the new car at the location of your choice. It's similar to the above method but the payments change a little. PM me for details on this option.
     
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  2. bradhs

    bradhs Member

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    Wow cool deal! I’m PM you.
     
  3. cellphonechris

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    Who gets the $3K CT incentive in either scenario?
     
  4. HankLloydRight

    HankLloydRight No Roads

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    In the first scenario, I would, but that offsets the sales tax I'd also be paying.

    In the second scenario, the buyer would.
     
    • Like x 1
  5. skreemer7

    skreemer7 Member

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    I dont understand what you mean by referral credit. Is it basically a free model 3 you're getting?
     
  6. HankLloydRight

    HankLloydRight No Roads

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    No, I'm not getting a free Model 3. It's credit for a Powerwall2 award.
     
  7. MP3Mike

    MP3Mike Well-Known Member

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    I don't understand why you are willing to give the buyer the $7500 credit if you buy the car but not if they buy the car. If you buy the car nobody is eligible to claim it for that VIN. (You obviously can't since you are clearly buying it for the purpose of reselling it.)
     
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  8. HankLloydRight

    HankLloydRight No Roads

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    If they buy the car (second scenario), they can take the credit.
     
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  9. MP3Mike

    MP3Mike Well-Known Member

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    I understand that, but why are you willing to pay them $7500 if you buy the car? It isn't money you will get back. So obviously it is way better for your if they buy it instead of you buying it.
     
  10. Zaxxon

    Zaxxon Supporting Member

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    Yeah, this is what jumped out to me, as well. The first scenario is incompatible with the tax credit--you can't purchase the vehicle for the purpose of resale and take the credit.
     
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  11. HankLloydRight

    HankLloydRight No Roads

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    This has been hashed out numerous times on TMC. There's no need to hash it all out again.
     
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  12. b team

    b team Member

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    I doubt that’s the position the IRS will take.
     
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  13. HankLloydRight

    HankLloydRight No Roads

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    I didn't state any position.

    Just that this thread is not here to debate the tax credit.
     
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  14. patrick40363

    patrick40363 Member

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    Which referral program is the powerwall from? I have been trying to get my powerwall awards used as a credit but no luck.
     
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  15. MP3Mike

    MP3Mike Well-Known Member

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    I'm not debating the tax credit, I was asking why you are willing to give some $7500 if they buy the car from you vs. them buying the car directly but with your referral credits.
     
  16. HankLloydRight

    HankLloydRight No Roads

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    It's taken me nearly a year to get it done. It just takes a long long time. They are short-staffed and overloaded.

    Maybe I'm just a magnanimous guy. Or perhaps this:

     
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  17. tree100

    tree100 Member

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    For what it's worth, at least in my case, I don't think option 1 would be good for anyone. I ended up not needing my reservation, and was able to let my BIL take it over. It was very simple to have him log in to my account (even better if the reservation is on it's own My Tesla account, but I doubt it is since this is a unique scenario for OP) and complete the reservation and additional deposit to order the car. When it came time for delivery, the delivery rep was able to move "his" car to it's own unique My Tesla account and I didn't see any of the information from there on out. I didn't have to be involved at all in delivery/payment/etc. For all intents and purposes he bought the car himself and can claim any and all tax credits.

    This would require some trust from both parties...however if you're involved in a sale like this I would imagine you'd have to have some trust either way. Perhaps the escrow could be set up bi-laterally so that you each put in the same amount toward the car until the transfer to a unique My Tesla account occurs. I.E. OP puts $2500 deposit into an escrow account at the time buyer puts down the deposit. Or the inverse, buyer puts $3500 into escrow when OP puts down the additional deposit ($1000 reservation and $2500 deposit). That way if either flakes out, the other is covered for what he/she may have lost.

    GLWS!
     
    • Like x 1
  18. aaronkalb

    aaronkalb Member

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    I can vouch for Hank. I purchased a set of arachnid wheels from him over a year ago and it was smooth sailing from start to finish.
     
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  19. patrick40363

    patrick40363 Member

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    Thanks for the info regarding the credit.
     
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  20. HankLloydRight

    HankLloydRight No Roads

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    Yes, I would do that (just transfer my Tesla account to a buyer) but I have a long referral credit history there (going back to the start) I'd like to maintain going forward. Plus a few referrals pending recent awards.
     

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