t.e.s.l.a_dude
Member
This is encouraging. So we are not moving to the back of the queue but to the next available VIN.
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Tesla EV Tax Credits coming back?
- Thread starter hnguy054
- Start date
more demand mean Tesla can raise the MSRP / Dealerships can add another $5k market adjustment.
That’s the free market at work. Last I checked, that wasn’t always a bad thing.
Exactly how does giving a $9,000 credit to American union made PHEVs with minimal 10kwh batteries for the rest of the decade, do any good for electrification, when the credit for Teslas, all startup EV companies, and all other EVs including the likes of American made VWs is only $8,000? Do you honestly believe that car manufactures will ramp up EVs when they can rake in profits from selling cheap small battery PHEVs, keeping their gas engines humming along - profits up, unions happy. An earlier proposal ended PHEVs in 2025, but I guess the unions, GM, Ford, and Selantis got to them with dollar signs in their eyes. This is the biggest corrupt boondoggle ever.
Depending on your circumstances, the numbers don't necessarily add up:
- 8% sales tax on another $60K vehicle: $4800
- MSRP increase since my original order: $3000
- Difference between 1st and 2nd year CO ownership tax: $360
- New order fee: $250
I mean I literally explained it in my earlier post. People need to walk before they can run. Plenty of people are not ready to make the jump to EVs yet. And no matter how bullish everyone here is on EVs, they aren't still up to snuff with ICE vehicles in certain categories and in some use cases. For example, the Pacifica is an excellent PHEV minivan that has no EV competitor at the moment. It absolutely should benefit from tax credits so the general population is drawn to it over a regular ICE vehicle. I'd rather people who would just keep buying ICE vehicles because EVs today don't meet their needs buy a PHEV than another ICE car. A PHEV serves as a great "gateway drug" to the EV experience and once people experience the benefits of an electric vehicle that they mostly never have to worry about filling with gas, they are going to be that much more inclined to buy a regular EV down the line.
If you want to just make everything into absolute black and whites and get on a bitter soapbox to align with your politics, I guess you can keep going down that path but I have no interest in arguing on that front. But I think it is short sighted to be against PHEVs at least in the short term. Just because an EV works well for you, doesn't mean it does for everyone out there, and we are all better served if everyone starts transitioning to EVs/PHEVs over ICE vehicles in the short term.
Yup. I thought about maybe placing a new order but I don't think it makes sense.
+$5k: I can sell my car currently to Vroom for $5k over what I paid all in with tax, let's assume that holds (this was their offer before the recent $2k increase)
-$6.2K: The actual car itself is now $6.2k more than when I paid.
-$4.2k: Taxes on the new car, no benefit of offset because I wouldn't be trading in the current one.
-$1.7k: PPF cost that I have on the current one that would need to be redone.
+8k: Tax Credit
$0.9
So I'd end up ahead $900 and out a lot of headache and effort to pull it off. Not really worth it for me.
leaftoy
Member
Today's video on this topic on YT by BeardedTeslaGuy said that as it stands now this will be a POS incentive. How would POS incentive and income limits work together? Is it based on previous year's numbers? Or based on income in tax year of the purchase. If it is the latter how would it work?
The difference is right now there isn’t a credit. Let’s say new cost is $50k and people are willing to pay $55k for used. If there’s a $10k tax credit later then new would be $40k. If (a big if since the market may have changed) they still are willing to pay $5k over new then people would pay $45k for your $50k car, so you won’t be able to sell for a profit later and you will lose all the sales tax from your initial $50k purchase.
ProjectTrinity
Member
Like a lot of people said in this thread earlier, when they ordered early 2021, the price was $5-6k cheaper so they pretty much got the incentive almost.
and there will still be people who will delay their december pick up until after jan 1 to get even more of a savings
im sure tesla will come out with a statement that you will be set back to the "end of the line" if you delay
they will do anything.....and i mean anything.....to have you pick up right up until Q4 end
Something tells me they will be able to get out each and every vehicle produced in Q4 regardless of what they do. I wouldn't expect deliveries to be impacted. I'm sure if they offer vehicles to people with long wait times earlier, there will be people willing to jump on it and miss out on the credit. For many people the tax credit is not as valuable as getting a vehicle today vs. 6-10 months down the road. When you factor in deliveries outside of the US, I don't think Tesla has to worry about any missed deliveries in Q4 due to people waiting on the credit. Hopefully, they allow people to push back delivery without going to the back of the line. I think that would result in a longer line and longer wait times, which is likely starting to cost Tesla sales.
I think these incentives will have a very big impact on Chevy Bolt/EUV sales once the 2022's are back on the market after the battery recall. I mean you could get a decently equipped Bolt for about $33K minus a $12.5 tax credit.
A brand new 259 mile EV with a 6.5 sec 0-60 for just over a net of $20K should sell very well. There's a lot of them sitting on dealer lots right now. I think they are going back in production in Nov or Dec.
mackgriggs
Member
Yeah, a 20K bolt sounds great....especially if I am looking for a new car for a teenage driver.
Though.....seems like there are some loopholes with the bill. For example....lets say, a person is above the $800K income limit. Couldn't they have a family member (like, a living parent who is below the income level), purchase the vehicle, get the credit, and then do a title transfer sales tax free? (here in idaho you can sell a vehicle to a family member sales tax free).
That’s possible but the income limit is so high… If I’ve got $800k of yearly taxable income then I’m probably not going to hassle with it for $10k.
leaftoy
Member
The simplest approach would be to tell the oldest orders still on hold to pick up the vehicle by EOY or have their order cancelled. i.e., put a 3 months max hold limit, and force older holds to make a decision. They are anyway getting a discount almost equal to the benefit we could expect in 2022 from the federal government.
I ordered when the order page said January. My EDD is 12/16-12/31. If they say my car must be picked up a week before a $8k tax credit or I'll have to wait 6-10 months, then my other Tesla will be my first and last. Tesla isn't the only game in town anymore. I hope they (and their shareholders) realize having a 4-6 week delay in many of their sales has no major long-term impact.
My MY is my favorite car I've had in 40 years. I'm hoping for a long happy relationship with Tesla. I suspect they'll move my EDD many more weeks to the right anyway. They have delayed it twice in the last few weeks.
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