Tax credit 2023 [The tax credit discussion thread]

[ElectricIAC]

Please do not hold your order for tax incentive purpose

Inflation Reduction Act used EV funding mostly applies to PHEVs

The Inflation Reduction Act has dedicated funds for used electric vehicles, but the vast majority of models that apply are PHEVs instead.

www.teslarati.com

They could have called it the “Don’t kick puppies” act and it would be just as accurate — Which it isn’t.

 

[Happy Hippo]

tesla is selling every car they can make. they aren't going to manipulate any pricing or features to fit a tax credit until they need to sell more cars.........no time soon. A tax credit isn't going to stop anyone from buying a tesla and that's all tesla TSLA cares about folks

Actually the tax credit is doing that. You can look all over the boards and you tube of ways to post pone delivery until 2023. It is stopping people!

 

[ElectricIAC]

Actually the tax credit is doing that. You can look all over the boards and you tube of ways to post pone delivery until 2023. It is stopping people!

Only the people who can’t really afford the car anyway.

 

[Happy Hippo]

Only the people who can’t really afford the car anyway.

Based on your opinion. that is ALOT of people. Pages and pages on forums and you tube videos.. I dont think that is the case, I think that if it is available, people will take it anyway...

 

[ZenRockGarden]

Tesla might come up with cheap version of MY to qualify pricing requirements(<$55k) with upgrades via app.

I believe the Model Y will be in the SUV category and have a higher price ceiling

 

[rickybobbee]

with the guaranteed recession coming, interest rate hikes, tax credits and over inflated car market everyone knows houses, cars and everything else is going to get real cheap real soon so people are just simply waiting.....we saw this in china today 9% price drop on tesla. Most people know they are paying too much for a car right now and the writing is on the wall, the wallets are going to tighten

 

[ewkid]

I am definitely on the fence now and wondering if I should take delivery on a new vehicle in Dec/Jan timeframe or try again in June. I could use another vehicle but it doesn't need to be a new one. I'm only looking at new because 2-3 year old cars currently have new car prices.

 

[Happy Hippo]

I am definitely on the fence now and wondering if I should take delivery on a new vehicle in Dec/Jan timeframe or try again in June. I could use another vehicle but it doesn't need to be a new one. I'm only looking at new because 2-3 year old cars currently have new car prices.

I am with you and my delivery is in December. I figure if I cannot push out to next year, then I lose the $250 no biggie. I rather lose that then pull the trigger on a 2023 knowing that I can get one of those MY flippers that brought a 2022 with less than 100 miles on them trying to sell them at high prices. They are dropping prices as we speak... I can wait..

 

[randmness]

I am with you and my delivery is in December. I figure if I cannot push out to next year, then I lose the $250 no biggie. I rather lose that then pull the trigger on a 2023 knowing that I can get one of those MY flippers that brought a 2022 with less than 100 miles on them trying to sell them at high prices. They are dropping prices as we speak... I can wait..

We're kind've in the same boat. We reserved a MYLR back in March that is set to be here in December ($59K.) Fortunately, we sold our 2nd vehicle back in September; the estimate had fallen almost $5K from the summer, but was still higher than what we paid for it in 2020. The idea was to roll the elevated trade-in value into a new car, but if we can snag one of these rapidly dropping 2022s for cheaper, we may just do that instead.

Something we have noticed with some of the other EV options that we were considering, is that dealers appear to also be removing markup. Really seems like interest is dropping on $50K+ vehicles across the board.

 

[vickh]

Please do not hold your order for tax incentive purpose

Inflation Reduction Act used EV funding mostly applies to PHEVs

The Inflation Reduction Act has dedicated funds for used electric vehicles, but the vast majority of models that apply are PHEVs instead.

www.teslarati.com

I know it's blasphemy for purists here, but wife wants a PHEV, so we might get the Outlander instead of the Y

 

[vickh]

I am with you and my delivery is in December. I figure if I cannot push out to next year, then I lose the $250 no biggie. I rather lose that then pull the trigger on a 2023 knowing that I can get one of those MY flippers that brought a 2022 with less than 100 miles on them trying to sell them at high prices. They are dropping prices as we speak... I can wait..

I wonder how soon will car flippers go the way of house flippers, except here they won't screw up everyone's comps.

 

[vickh]

There’s the first *real* price cut starting in the China market, almost 9% taken off the Model Y

China's stock market is collapsing. They're in for a world of pain for luxury goods

 

[vickh]

I could see that flying with something like AP, although there would still probably be risk in trying to charge $54k for a vehicle without cruise control (assuming that would depart with basic AP)

But if we're talking locking out range, horsepower, or physical attributes and then offering to unlock later to dodge MSRP restrictions, I think the taxman would bring down the hammer on that and I bet they're receiving feedback in that regard. But maybe I'm wrong.

do you think IRS really understands HW/OTA nuances?

 

[Happy Hippo]

We're kind've in the same boat. We reserved a MYLR back in March that is set to be here in December ($59K.) Fortunately, we sold our 2nd vehicle back in September; the estimate had fallen almost $5K from the summer, but was still higher than what we paid for it in 2020. The idea was to roll the elevated trade-in value into a new car, but if we can snag one of these rapidly dropping 2022s for cheaper, we may just do that instead.

Something we have noticed with some of the other EV options that we were considering, is that dealers appear to also be removing markup. Really seems like interest is dropping on $50K+ vehicles across the board.

Which brands are you seeing that are removing markup? I haven’t , they are going up in my area.

 

[randmness]

Which brands are you seeing that are removing markup? I haven’t , they are going up in my area.

When we were looking for a car to replace my wife's vehicle, it came down to the Audi Q4 Etron, Mustang Mach E, and the Model Y. The Q4 didnt hit US dealers til about August or so, so when we test drove and inquired about buying one, all of the local dealers told us the typical dealer talk (it's a limited car, markup is $5-10K, blah blah.) Mustang Mach E markups were also high as they still qualify for the full $7500 in 2022 (without income limitations I believe.)

Lately, there has been a change in tune it seems. The Audi dealers we spoke to in August have been frequently reaching back out to us to let us know that they have options available, and are no longer charging markup. We also found a local Mach E GTPE that a dealer was willing to sell at MSRP; it was a customer’s reservation. We passed as after the $7500, it was close to our Y reservation price.

I'm over in the DC area. I wonder if we'll soon see the return of manufacturer incentives. I think demand across the board is dropping, but its hitting $50K+ vehicles more dramatically....which makes sense.

 

[bro1999]

Only the people who can’t really afford the car anyway.

This statement literally makes no sense as the tax credit for EV purchases in 2023 isn't POS and has to be claimed on your tax return in 2024. If someone can buy a Tesla in 2023 and can afford to wait until 2024 to claim the credit, they have to front all the money up front so they can definitely afford it period.

Anyone that's eligible for a potential tax credit and has a Dec EDD would be STUPID not to try and delay to Jan '23. I mean unless you hate money.

 

[Hyperfire21]

This statement literally makes no sense as the tax credit for EV purchases in 2023 isn't POS and has to be claimed on your tax return in 2024. If someone can buy a Tesla in 2023 and can afford to wait until 2024 to claim the credit, they have to front all the money up front so they can definitely afford it period.

Anyone that's eligible for a potential tax credit and has a Dec EDD would be STUPID not to try and delay to Jan '23. I mean unless you hate money.

Def seems like a lot of people hate money on this forum lol

 

[bro1999]

Def seems like a lot of people hate money on this forum lol

Trade in their current Tesla to Tesla to take delivery of a new Tesla on 31 Dec 2022...that'd be peak money-hatin' right there. LOL

 

[ElectricIAC]

This statement literally makes no sense as the tax credit for EV purchases in 2023 isn't POS and has to be claimed on your tax return in 2024. If someone can buy a Tesla in 2023 and can afford to wait until 2024 to claim the credit, they have to front all the money up front so they can definitely afford it period.

Anyone that's eligible for a potential tax credit and has a Dec EDD would be STUPID not to try and delay to Jan '23. I mean unless you hate money.

Some things are worth more than money. Like happy times in your new Tesla.

Ask anyone who kept and accepted their delivery in 2021 if it was worth it not dragging it out into this year and beyond for a tax credit that didn’t come.

 

[bro1999]

Some things are worth more than money. Like happy times in your new Tesla.

Ask anyone who kept and accepted their delivery in 2021 if it was worth it not dragging it out into this year and beyond for a tax credit that didn’t come.

I would gladly delay the "happy times" in my Tesla by a month or 2 if it meant an extra 3,750 or 7,500 in my pocket down the road.
As for comparing people delaying last year, it's apples to oranges as last year a new EV tax credit bill was never actually passed, while this year one WAS passed (though tax credit eligibility is still up in the air). But the odds of qualifying for a tax credit are exponentially higher this year versus last year.