With the potential $7000 tax credit, this may hurt the resale value of Tesla for a while.
Potential tax credit impact on prices
- Thread starter Zorg
- Start date
There is no tax credit. There is a proposed tax credit. Which is not going to be $7K at the end of the day.
Agreed, until it's passed we won't know what it really is, however I'm holding out on purchasing until it paasess and at that point there is little reason to go for a used model when you can get one with the latest updates for the same price or less.
I suspect others who are ready to buy but aren't forced yet to will be in a similar position.
I'm in the same boat as you... Holding out until it all shakes out
Unless you make less than $40K per year, there is no sense in holding out. That part of the bill is *not* going to go up.
Noneduck
Member
Which part of potential was not clear to you? Obviously, it also could be none. However, my money is that some tax credit will happen. What the final number ends up being is anyone's guess.
I think that it will impact resale values, especially on recent models and is going to freeze the market until this gets worked out.
No it won’t. Anyone making over $40K a year will not care. And that is probably 95%+ of Tesla owners.
I agree this shouldn't effect the market at the moment since it hasn't even left committee....but the way I read it, the 7k tax credit on new cars would have no income limits (same as it originally was, just $500 less) and the income limits are for used EV's purchased from dealers on the first resale. It would make no sense to have a 7k nonrefundable tax credit & an income limit of 40k since people with 40k AGI have no where near 7k in tax liability....
This would definitely push me to buy a new one vs 2021 that has under 2k miles. It takes away the tax savings for most of us that buy used for that reason.
There have been numerous proposed new credits (or refunds) since Tesla fell off the Fed one back a year + back. They have come and gone with nothing taking hold.
If you're happy driving what you have, or are work from home like many and rarely driving sure hold out.
Of course there's always the risk that Musk raises the prices too. There was often a tenuous connection between the Fed credit current payout and Musk pricing the cars.
If you're happy driving what you have, or are work from home like many and rarely driving sure hold out.
Of course there's always the risk that Musk raises the prices too. There was often a tenuous connection between the Fed credit current payout and Musk pricing the cars.
Remember the Dems haven’t hold the Congress and the WH for a very long time so obviously the previous bills would not pass. It’s different this time. They know that they may have 2 years to do this.
I wonder if we can buy a new one now and still claim the tax full credit next year (if the bill passes). If Elon anticipates the bill is imminent, he’ll pretty sure raise the price to get a piece of it.
I wonder if we can buy a new one now and still claim the tax full credit next year (if the bill passes). If Elon anticipates the bill is imminent, he’ll pretty sure raise the price to get a piece of it.
Uncle Paul
Well-Known Member
Until the tax credit bill passes, the pricing of used S/X should remain pretty stable, considering the recent $10,000 price increase for the refreshed version.
Possibility is that if the tax credit passes, Tesla may raise their new prices again.
For models 3/Y most likely the passing of the tax credit will reduce used resale value even more, unless Tesla raised the prices of those as well.
Crystal ball is cloudy as exactly if and for how much and for what incomes the tax credit will cover.
Probability it will impact 3/y buyers more, as they tend to be the value shoppers.
Possibility is that if the tax credit passes, Tesla may raise their new prices again.
For models 3/Y most likely the passing of the tax credit will reduce used resale value even more, unless Tesla raised the prices of those as well.
Crystal ball is cloudy as exactly if and for how much and for what incomes the tax credit will cover.
Probability it will impact 3/y buyers more, as they tend to be the value shoppers.
HappyDude
Member
It could still be blocked by the filibuster in the senate
The current text of the bill says it only applies to vehicles sold after enactment
Silicon Desert
Active Member
I understood you perfectly
I guess some folks think "potential" means it is already in place.The proposed $40k income limit is for Used EV. It's a new credit proposed for buying used cars. They won't set a limit that low for the $7000 proposed credit for new EV because if you make less than $40K, you don't owe $7000 in federal tax. If they do set a limit, it will probably be closer to $60K or $70K.
I believe they can pass more than one reconciliation per year. First one would be the stimulus. Second might be infrastructure and reconciliation will only require simple majority.
Tesla will add EAP and $5000 to the purchase price, and call it included. Simple. They already do this.
