LLWS
Member
You’re spending a lot of time doing analysis and posting if you think the MY is over priced. Just cut bait on the MY idea and get a different car.
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I do think that. Only time will tell. Interest rates will continue to go up, which makes everything even more expensive.You’re spending a lot of time doing analysis and posting if you think the MY is over priced. Just cut bait on the MY idea and get a different car.
For what it’s worth: the Tesla sales manager told me that Teslas will not qualify for the new credit.I always try to stay away from religion and politics…the interaction tends to go in a bad direction when those topics come up.
This is a more complex tax credit. I am not making any plans until the IRS releases some guidance on which vehicles qualify under the new program.
We don't know until the battery mineral rules are defined but it does seem very few EVs will qualify. The suspicion is waivers will be issued in 2023.For what it’s worth: the Tesla sales manager told me that Teslas will not qualify for the new credit.
That is also my understanding from reading the relevant provision of the bill and reading analysis from tax experts.
Unfortunately very few EVs will qualify.
Not sure if it’s possible to get a waiver for any provision of the law, since it’s not an administrative rule. And if they do make an administrative rule, there will be the rule making process which will delay further. Then there will be the inevitable litigation. The bill is quite a mess from a legal perspective. It’s gonna make some lawyers a lot of money though!We don't know until the battery mineral rules are defined but it does seem very few EVs will qualify. The suspicion is waivers will be issued in 2023.
2024 and the foreign entities of concern rule is a different issue.
Do we know what % of critical minerals in the 2170 for US cars is from approved countries?Not sure if it’s possible to get a waiver for any provision of the law, since it’s not an administrative rule. And if they do make an administrative rule, there will be the rule making process which will delay further. Then there will be the inevitable litigation. The bill is quite a mess from a legal perspective. It’s gonna make some lawyers a lot of money though!
Year | Critical minerals minimum percent value requirement |
---|---|
2023 | 40% |
2024 | 50% |
2025 | 60% |
2026 | 70% |
2027 and later | 80% |
Year | Battery components minimum percent value requirement |
---|---|
2023 | 50% |
2024 and 2025 | 60% |
2026 | 70% |
2027 | 80% |
2028 | 90% |
2029 and later | 100% |
Not sure if it’s possible to get a waiver for any provision of the law, since it’s not an administrative rule. And if they do make an administrative rule, there will be the rule making process which will delay further. Then there will be the inevitable litigation. The bill is quite a mess from a legal perspective. It’s gonna make some lawyers a lot of money though!
Assuming Tesla is eligible for the credits...I don't even know if I understand this properly. Okay January 1st, the dealer where you pickup the car will give you $7,500 off the car. But you need to make less than $150k single or $300k combined, and you also need a tax liability of at least $7,500 in the same tax year. If you have less than a $7,500 tax liability you get the net difference down to zero with no option to turn the $7,500 or any portion into cash. If you already are forecasting a refund you just owe it back to the Treasury anyway?
The Point of Sale credit is not until 2024. "Starting in 2024, the Inflation Reduction Act establishes a mechanism that will allow car buyers to transfer the credit to dealers at the point of sale so that it can directly reduce the purchase price."Agree with how they did it in the past, I did a Model S and another EV under the first 200k EV cars program. What we're talking about here is a point of sale credit. I think what I did a terrible job of asking is could you end up owing the money back anyway depending on your circumstances?
Check this out:
For the record, that’s worth precisely nothing.For what it’s worth: the Tesla sales manager told me that Teslas will not qualify for the new credit.
Great question. It appears to me that most seem to agree that Tesla (and most others) will only be elibible for the $3,750 made in NA portion in 23. Waiting for the Gov or Tesla to provide more info about the other $3,750 for battery components.Okay. So how do we know the Y even qualifies in the first place? China is not a free trade country and a large portion of the battery components are likely to be sourced in China.
Great question. It appears to me that most seem to agree that Tesla (and most others) will only be elibible for the $3,750 made in NA portion in 23. Waiting for the Gov or Tesla to provide more info about the other $3,750 for battery components.
Thanks. This chart seems to sum it best. The MYLR seems to be in good shape for the battery components, no one seems to have any clue abut the minerals (at least publicly available info).Correction: both halves are battery based. NA manufacturing is merely a requirement and doesn’t provide any credit
Here’s a great summary
I would just say that Fed Funds Rate is not always directly related to new car APR. I just got an email for 0% financing for another brand.So basically in ACPD’s use case. Just lost easily $1500 in interest rate hikes on a potential $3750 savings. In the use case we’re waiting 100 days to order trying to avoid both a price increase and a holiday interest rate increase to save $2000 or >$30 a month on a 72 month car loan.
I think my argument might be the total cost of the car might actually cost less now without the rebate depending on that the Fed does. I have two Y Performances coming in the next two weeks. Rates have been locked for weeks. I don’t happen to qualify for the rebate thing, but I’m curious if I end up paying less total ownership cost versus those waiting for the rebate.
If I had more time today, I’d drop this into Excel and find out.
Tesla is unlikely to raise prices. Actually some think they may have to lower prices. Even more so if interest rates rise.So basically in ACPD’s use case. Just lost easily $1500 in interest rate hikes on a potential $3750 savings. In the use case we’re waiting 100 days to order trying to avoid both a price increase and a holiday interest rate increase to save $2000 or >$30 a month on a 72 month car loan.
I think my argument might be the total cost of the car might actually cost less now without the rebate depending on that the Fed does. I have two Y Performances coming in the next two weeks. Rates have been locked for weeks. I don’t happen to qualify for the rebate thing, but I’m curious if I end up paying less total ownership cost versus those waiting for the rebate.
If I had more time today, I’d drop this into Excel and find out.