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Resale question

Discussion in 'Model 3' started by Rawad H., Nov 3, 2016.

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  1. Rawad H.

    Rawad H. Member

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    So like a lot of people I have a Model 3 reserved, I currently have a model S and am in the front end of the reservations. So my situation changed and I no longer need the Model 3, so my question is this. Is it allowed to purchase the model 3 with my reservation and sell to a friend that is much farther down the reservation line?
     
  2. randy1077

    randy1077 Model X60 Vin 180XX. Reverved 8/11/2016

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    I believe that you can if you live in 1 of the 4 states where you receive the blank title. Arizona, Maryland, New Jersey and Texas. I was given a blank title and could have just written in any name/leinholder on the form. You would still need the cash to "float the deal" as the middle man.
     
  3. Az_Rael

    Az_Rael Supporting Member

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    You could, but the extra costs involved could be significant. Your friend wouldn't get the EV tax credit (assuming its available) and you both may have to pay sales tax if you are in a sales tax state.

    On another note, is that a wrap on your S? It looks awesome!
     
  4. Jayc

    Jayc Member

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    Very much doubt it. Will lead to a business opportunity for those in the waiting list but will not benefit Tesla in any way and therefore, I cannot see them allowing it.
     
  5. dsvick

    dsvick Active Member

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    Can you purchase it and then resell it? Sure, there is nothing that prevents you from doing that, it is the reservation itself that is usually not transferable. However, like Az_Rael mentioned, there would be a lot of extra costs involved, such taxes for both of you. Also, while you may get a loan at new car rates, your friend probably would not. More importantly, neither of you would get the tax credit, in order to get it yo have to purchase a new car (so your friend won't qualify) and you cannot purchase it for resale (so you won't qualify either).
     
  6. rxlawdude

    rxlawdude Member

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    That's incorrect. The first purchaser (titled owner) that puts the vehicle "into service" is entitled to the Fed Tax Rebate. If "intended for resale," you're correct. However, if you purchase it, operate it for a day, and then decide to sell it, you've skipped past that rubric. In other words, that exception is very hard to prove.

    In contrast, the California rebate program requires one to put the car into service AND continuously own the vehicle for 30 months, or a prorata portion of the rebate is clawed back.
     
  7. eSpiritIV

    eSpiritIV Member

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    Everyone's responses are right on. My thought is you keep the M3 reservations and sell the S when the time comes :) Might make more financial sense?
     
  8. Jason Bourne

    Jason Bourne Member

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    I think Model ≡s will be reselling for more than MSRP during their first year. There will be plenty of people who will be willing to pay up just to not wait the 1.5+ years if they were to reserve/order around the time of first deliveries.
     
  9. flamingoezz

    flamingoezz Member

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    OP is talking about selling to a friend -- not the open market. And even so, people in a position to pay over retail on a Model 3 without a tax credit aren't THAT far off from an S60 now with a guaranteed $7500 tax credit. Sure there will be some people in between, but I doubt they will be knocking down the door, especially with 500K cars coming per year.
     
  10. Rawad H.

    Rawad H. Member

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    thanks for all the replies!, my friend would be paying in cash, and I didn't no that sales tax would have to be paid twice? and yes its a vinyl wrap on the car ty :) my wheels are also black now.
     
  11. K-MTG

    K-MTG Sunshade Captain of TMC

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    You can give the car to your friend as a gift (so no tax), and he can give you $35k or so in cash.
     
  12. JeffK

    JeffK Well-Known Member

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    Have you actually tried to work with Tesla to get written approval to transfer your reservation to your friend?

    Transferring is not impossible, you simply need written approval. They probably want to make sure you aren't selling your spot. If your reason is that you have a Model S and there's some other legit reason too, you'd think they'd be much more likely to accommodate.
     
  13. pinski

    pinski Not Ludicrous

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    Isn't this similar to the situation where the guy's girlfriend bought his reservation? OP could configure the car when prompted to his friend's specs, and then when it's time to do the paperwork, the friend should be able to be the one who buys it (pays, name on title/lien), right? Then he could reimburse the OP his $1000 reservation.
     
    • Like x 1
  14. dsvick

    dsvick Active Member

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    Just because it is hard to prove doesn't make what I said incorrect. And besides, since he posted it on this forum, it is prertty obvious what his intentions might be. Not that the IRS is skimming these pages ....
     
  15. Nismode

    Nismode Member

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    This is the way to go. I don't know why people are complicating it. The car is still a ways away, so just configure the car how your friend wants it (just like you did with your Model S), and as it gets closer to the time to delivery, just change the registration/titling info to your friend's info. And he reimburses you for the $1000 reservation (plus more if you feel like it is merited for taking advantage of your better priority as a Tesla owner.
     
    • Like x 1
  16. N5329K

    N5329K Member

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    Some less-than-honest dealers have been known to take ownership of a car that qualifies for a state/federal rebate, pocket the rebate and then resell it at full price as a "used" car with five miles on the odometer.
    But the dealership model is there to protect buyers, right?
    Robin
     
    • Funny x 1
  17. rxlawdude

    rxlawdude Member

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    Uh, no. Wrong. Very wrong. :)
     
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  18. McRat

    McRat Active Member

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    Have your friend legally change his name to your name.
    Have him buy the car.
    He changes his name back after he files his Federal return, and receives any refunds if necessary.:D
     
    • Funny x 2

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