Order on hold until March, email today order will be cancelled?!?

[Sludog]

People waiting for this bill to pass and holding delivery when they have cars they ordered a car a year ago that are almost $10k less than todays prices.
Why not just buy the car now drive it around for a few months, order another Model Y, when the bill passes sell the current car to Vroom or Carmax for $60k or more and then take delivery of a shiny new Austin Model Y and enjoy your tax break.

 

[tangible1]

People waiting for this bill to pass and holding delivery when they have cars they ordered a car a year ago that are almost $10k less than todays prices.
Why not just buy the car now drive it around for a few months, order another Model Y, when the bill passes sell the current car to Vroom or Carmax for $60k or more and then take delivery of a shiny new Austin Model Y and enjoy your tax break.

Because no one over the age of 25 believes they can make the sale/buy swap and have a profit, let alone break even.....
Pay license/registration/tax bill twice? That's never worked in my lifetime.
And for 2022 purchases, you have to wait for tax season April 2023 to get the money, at least with the currently written legislation.
2023 purchases, it's different - PoS Credit.
There's always a first time. Welcome to BBB Free Money?

 

[Firocity]

Still don't see why people are bitter about others trying to save money if a potential opportunity presents itself like the BBB bill did.

There are a lot of haters that are salty about not locking in at lower prices and understanding all the hold levers you can pull. It’s human nature.

 

[MP3Mike]

And for 2022 purchases, you have to wait for tax season April 2023 to get the money, at least with the currently written legislation.

That isn't totally true. You can adjust your withholdings such that you get the refund early. (But not all at once.)

Pay license/registration/tax bill twice? That's never worked in my lifetime.

And that depends on the state. There is very little tax, 0.57%, on cars in Oregon. And title/registrations fees for an EV are only about $500.

 

[Sludog]

Because no one over the age of 25 believes they can make the sale/buy swap and have a profit, let alone break even.....
Pay license/registration/tax bill twice? That's never worked in my lifetime.
And for 2022 purchases, you have to wait for tax season April 2023 to get the money, at least with the currently written legislation.
2023 purchases, it's different - PoS Credit.
There's always a first time. Welcome to BBB Free Money?

National used car dealers like Carmax, Caravana, and Vroom are making millions each month flipping cars. Sure in the past buying a car was a losing proposition as soon as you drove off the lot but not recently. Cars are currently an appreciating asset which is impossible to understand but it's true. Have you seen the used car prices lately? Used Tesla are selling for more than new ones pretty much anywhere.
License and registration is transferable where I live and there is no sales tax on EV vehicles as well so the only loss buying a Tesla is the $1200 destination fee which is easy digested with the used car sale.

 

[tangible1]

That isn't totally true. You can adjust your withholdings such that you get the refund early. (But not all at once.)


And that depends on the state. There is very little tax, 0.57%, on cars in Oregon. And title/registrations fees for an EV are only about $500.

Anyone aware enough to adjust withholdings also knows not to leave it on the table at all.
Always pay in April, NEVER get a 'tax refund' - or you've just given the Govt an interest-free loan.

Taxes in CA are real money. License/Registration ain't free.

 

[mwdietertg]

Used Tesla are selling for more than new ones pretty much anywhere.

Why do you think this will remain true if the BBB tax credit passes?

 

[Ogre]

Why do you think this will remain true if the BBB tax credit passes?

The BBB will make waits even longer, making cars you can buy immediately even more appealing. Also some people don’t qualify for the incentive.

Though you are right, it is almost certain the incentives will lower the resale value of all EVs. I just don’t think it’s cut and dried how much of an impact there will be.

 

[Sludog]

Why do you think this will remain true if the BBB tax credit passes?

Because most people don't have the luxury of waiting 6 months to a year for a new car. Not just used Tesla selling for more than retail. Used Ford mach e is selling way over retail and those cars already get the $7500 tax credit.

 

[FindMyElectric]

National used car dealers like Carmax, Caravana, and Vroom are making millions each month flipping cars. Sure in the past buying a car was a losing proposition as soon as you drove off the lot but not recently. Cars are currently an appreciating asset which is impossible to understand but it's true. Have you seen the used car prices lately? Used Tesla are selling for more than new ones pretty much anywhere.
License and registration is transferable where I live and there is no sales tax on EV vehicles as well so the only loss buying a Tesla is the $1200 destination fee which is easy digested with the used car sale.

There are some additional factors at play here as well...the flip itself (i.e. buying the car at a lower price and selling it for more to a retail buyer) isn't always what makes the money.

One popular national dealer owns the bank which finances their cars to buyers, so they can overpay for the vehicles (especially Teslas) and still make money in the long run as a large amount of users finance through them.

Another popular national dealer is the public-facing entity of a large dealer auction house. And allegedly, they put your car up for auction before they own it and see what it fetches--then reduce your offer on inspection to be commensurate with that price.

Other dealers don't even sell the cars to retail buyers--they just buy and sell them at auctions and they never make it to their websites, only saving the best ones with the widest margins for their sites.

There's a whole lot of stuff going on there! We only work with EV dealers who know Teslas and fit a more traditional model--we like a more curated, quality over quantity approach. But the industry is pretty complex on the buying/selling side with a lot of companies--more than many users realize!

But yes--prices are crazy high for a ton of reasons right now! It will be interesting to see how the EV tax credit affects this dynamic!

 

[voxel]

There are some additional factors at play here as well...the flip itself (i.e. buying the car at a lower price and selling it for more to a retail buyer) isn't always what makes the money.

One popular national dealer owns the bank which finances their cars to buyers, so they can overpay for the vehicles (especially Teslas) and still make money in the long run as a large amount of users finance through them.

Another popular national dealer is the public-facing entity of a large dealer auction house. And allegedly, they put your car up for auction before they own it and see what it fetches--then reduce your offer on inspection to be commensurate with that price.

Other dealers don't even sell the cars to retail buyers--they just buy and sell them at auctions and they never make it to their websites, only saving the best ones with the widest margins for their sites.

There's a whole lot of stuff going on there! We only work with EV dealers who know Teslas and fit a more traditional model--we like a more curated, quality over quantity approach. But the industry is pretty complex on the buying/selling side with a lot of companies--more than many users realize!

But yes--prices are crazy high for a ton of reasons right now! It will be interesting to see how the EV tax credit affects this dynamic!

I've heard of other reasons that compound the problem of high prices but not sure if they are true:

1) Car rental agencies are low on cars so they buy low mileage cars at high prices at auctions to place into service. Probably doesn't apply to Teslas except Model 3s

2) Sub-prime dealers overpay for cars like Teslas to have them in stock (for namesake/advertising) and make money off the financing. Related to one of your reasons above.

The core problem is just a shortage of new cars and cars retiring/totaled.

 

[ak.ak123]

have a MYLR EDD creeping up on me but I don't really need one for another few months.
anyone interested in taking this up?

white inside and out
tow, 5 seat
FSD

 

[Tinaatwt]

have a MYLR EDD creeping up on me but I don't really need one for another few months.
anyone interested in taking this up?

white inside and out
tow, 5 seat
FSD

Me please!!!

 

[doozenberg]

Its a fair gamble, but there's also nothing wrong with a car company telling you to buy it or cancel your order either.

People who were gambling on a green bill to pass with a 50/50 (at best) congress are taking a risk. Tesla is taking a risk by letting people delay. They have quarterly numbers to meet.

Can someone with any knowledge of tax credits answer this: How is Delivery Date defined? The day your payment of the purchase processes or the day you physically drive the car off the lot? I can see a potential win-win here for Tesla and customers hoping to hold out for potential tax credit -- pay for your car before end of quarter so Tesla can count those in sales numbers, then arrange for physical pick up on or after 1/1. Am I missing something here?

 

[MP3Mike]

Can someone with any knowledge of tax credits answer this: How is Delivery Date defined? The day your payment of the purchase processes or the day you physically drive the car off the lot? I can see a potential win-win here for Tesla and customers hoping to hold out for potential tax credit -- pay for your car before end of quarter so Tesla can count those in sales numbers, then arrange for physical pick up on or after 1/1. Am I missing something here?

The general advise I have heard is that the IRS considers the date the title/registration is filed as the date the vehicle is put in to service. And Tesla doesn't consider a vehicle delivered until they receive payment and the DMV paperwork has been filed. So no, you can't game it that way.

 

[JWM3]

My EDD was on 12/29 - 12/31/21 this morning and all the sudden I got the VIN.
Tesla called me and told me they are expecting the car arriving tomorrow and asking me to take delivery in 3 days or my order will be cancelled.

 

[Tinaatwt]

My EDD was on 12/29 - 12/31/21 this morning and all the sudden I got the VIN.
Tesla called me and told me they are expecting the car arriving tomorrow and asking me to take delivery in 3 days or my order will be cancelled.

I am in shock Tesla sent me a text this morning they found a match for me. It will be here tomorrow. I’m so excited

 

[Sludog]

Did anyone who got a cancelation email from Tesla NOT remove order from hold? I have not seen or heard any news of customers order getting canceled.
Is Tesla bluffing?

 

[pepperoni]

Did anyone who got a cancelation email from Tesla NOT remove order from hold? I have not seen or heard any news of customers order getting canceled.
Is Tesla bluffing?

Yes, see:

So here's the final update update:
- Original order placed (M3P) 3/2021
- My order was taken off hold automatically on 11/30
- VIN and delivery notification were received 12/1
- Messaged my advisor to let him know I can't take the car yet. VIN was unmatched and my order is gone from my account.

I'm not faulting Tesla at all - I understand they can't have orders sit open forever. The timing just wasn't right for me (and the price difference is only $1000 from current pricing). So that's what happens if you don't take delivery folks.

 

[Brandon318]

The general advise I have heard is that the IRS considers the date the title/registration is filed as the date the vehicle is put in to service. And Tesla doesn't consider a vehicle delivered until they receive payment and the DMV paperwork has been filed. So no, you can't game it that way.

CPA here, can confirm. Traditional convention for depreciation starts the date the asset is placed into service. BBB should follow that same convention, meaning the date title transfers to the owner, which is the date you pick it up, which is the date you also pay Tesla.