What's your opinion on buying this 2020 Model Y?

[ReaperDriver]

Looking on this MY right now on Tesla website, does this seem to be a good deal? What should I be worried about or looking for with this many mileage and year? Looking for your honest opinion, appreciate the help in advance. Thank you.

2020 Model Y​

Model Y Long Range All-Wheel Drive
55,130 mile odometer
$36,700
Red with black interior.

 

[AS9.9.]

I would personally not buy any Tesla that is nearly out of warranty. Granted, the battery and drivetrain warranty are going to be good until 2028. But I find a new squeak and creak in my both my M3 and MY monthly (just had them fix a really annoying one with my rear view mirror yesterday).

If I was you, I would try to get one with that is still under the general warranty (under 50K miles) so you have a bigger warranty cushion.

 

[ReaperDriver]

I would personally not buy any Tesla that is nearly out of warranty. Granted, the battery and drivetrain warranty are going to be good until 2028. But I find a new squeak and creak in my both my M3 and MY monthly (just had them fix a really annoying one with my rear view mirror yesterday).

If I was you, I would try to get one with that is still under the general warranty (under 50K miles) so you have a bigger warranty cushion.

Thank you for your honest opinion, I'll take this into consideration, I appreciate it.

 

[E90alex]

There’s a new Y LR red/white in inventory at El Paso for $49040-$7500 tax credit -$500 referral discount = $41040.

For $4340 difference I would take a new car with full warranty and all the little updates/features that have improved since 2020.

 

[ReaperDriver]

There’s a new Y LR red/white in inventory at El Paso for $49040-$7500 tax credit -$500 referral discount = $41040.

For $4340 difference I would take a new car with full warranty and all the little updates/features that have improved since 2020.

The tax credit is not on the spot though, in other words, it's a tax credit that can only be claim during tax season. Correct me if I'm wrong please. How do I get the referral discount? This is interesting, thank you for responding to my post.

 

[tangible1]

The tax credit is not on the spot though, in other words, it's a tax credit that can only be claim during tax season. Correct me if I'm wrong please. How do I get the referral discount? This is interesting, thank you for responding to my post.

7500 Federal Tax credit is supposed to become a PoS (point of sale) credit starting January 2024.
If your full-year 2024 income tax owed doesn't exceed 7500, then you will owe the difference back.
But you get the full credit upfront, so financing might be slightly easier.

 

[AS9.9.]

Thank you for your honest opinion, I'll take this into consideration, I appreciate it.

Warranty aside, I highly suggest you take a deep-dive into the differences between the new model years and the 2020. Some changes are quite dramatic (like the new CPU, and what I believe to be a superior cellular antenna that makes using the infotainment applications much quicker (no proof other than my own use on both old and new models). Other changes like built in wireless charger and newer center console might also interest you.

 

[E90alex]

The tax credit is not on the spot though, in other words, it's a tax credit that can only be claim during tax season. Correct me if I'm wrong please. How do I get the referral discount? This is interesting, thank you for responding to my post.

That is true, it’s not on the spot off the price currently. You can wait until 2024 so it’s taken off at time of sale, or if you have an extra $7500 to put into the down payment temporarily, you will get it back in a 4-5 months when you file your 2023 taxes.

Referral discount is available if you’ve never owned a Tesla before and you purchase through someone’s referral link. Only applies to new cars (both ordered and from inventory), but not used cars.

 

[ReaperDriver]

7500 Federal Tax credit is supposed to become a PoS (point of sale) credit starting January 2024 (more Biden vote-buying).
If your full-year 2024 income tax owed doesn't exceed 7500, then you will owe the difference back.
But you get the full credit upfront, so financing might be slightly easier.

I thought if you don't owe any taxes you lose the credit anyway, but I could be wrong on this.

 

[ReaperDriver]

Warranty aside, I highly suggest you take a deep-dive into the differences between the new model years and the 2020. Some changes are quite dramatic (like the new CPU, and what I believe to be a superior cellular antenna that makes using the infotainment applications much quicker (no proof other than my own use on both old and new models). Other changes like built in wireless charger and newer center console might also interest you.

ahh..gotcha, glad I came here and asked these questions, see I would have never known that there are some significant changes from 2020 to 2021 and forward...thank you for the info.

 

[ReaperDriver]

Copy that on its only good for new vehicles but not used, thank you.

 

[brkaus]

I thought if you don't owe any taxes you lose the credit anyway, but I could be wrong on this.

True. But “owing taxes” is your tax liability for the year, even if that tax was collected through payroll withholding. It is NOT the amount you either pay or get refunded at tax time.

 

[ReaperDriver]

True. But “owing taxes” is your tax liability for the year, even if that tax was collected through payroll withholding. It is NOT the amount you either pay or get refunded at tax time.

Yes, but I’m retired military, stay at home dad..lol so I have very little taxes to pay. One point I was going to bring up is that, the used vehicles have additional 1 year or 10,000 miles added to warranty after the basic warranty expires…something to think about for me. Thank you for the replies.

 

[E90alex]

If you have low tax liability then yeah the tax credit won’t benefit you. In that case going with used will be much cheaper than new.

 

[ReaperDriver]

If you have low tax liability then yeah the tax credit won’t benefit you. In that case going with used will be much cheaper than new.

Yes, I think that’s what I can gather based on info here and online too. Now next year if they can do on the spot discount using tax credit, that will be a game changer, huge savings. Plus if you have down payment, you can get a new Y for maybe around $30K. The red MY in my original post is gone by the way…lol, maybe someone here read my post and bought it, who knows. Thanks again ya’ll.

 

[E90alex]

Yes, I think that’s what I can gather based on info here and online too. Now next year if they can do on the spot discount using tax credit, that will be a game changer, huge savings. Plus if you have down payment, you can get a new Y for maybe around $30K. The red MY in my original post is gone by the way…lol, maybe someone here read my post and bought it, who knows. Thanks again ya’ll.

Even if they do apply the tax credit at time of purchase next year, you still need to qualify. If you don’t have enough tax liability at the end of the year then you will owe back the $7500 when it’s time to file 2024 taxes.

 

[tangible1]

I thought if you don't owe any taxes you lose the credit anyway, but I could be wrong on this.

if you don't owe any taxes, there's nothing to credit against - but you might get the money upfront anyway with a purchase in 2024.

as it works for 2023, when you file taxes for 2023 (in 2024), if you net owe greater than 7500, you can claim the full credit. if less, then only for the amount owed.
but you've waited many months, if not a year, before being able to realize the credit.

the same will apply in 2024, except as a PoS credit, you will PAY THE FEDS BACK for what you don't cover in taxes owed, in 2025 with your tax return filing.
So in that circumstance, if you owed tax of 5000 for 2024, you would be liable for payment of 2500 with your 2024 tax return (filed in 2025).
But you get the funds at point of sale, and pay the Feds back if you don't qualify for the full amount - after many months or a year after having spent the money.

All this assumes that the IRS is up to speed with their Forms, as well as their backoffice systems. Maybe not ....
Note that this year's tax filing season saw delays and confusion, with subsequent manufacturer messaging changes and car pricing adjustments all over the place.

 

[ReaperDriver]

I agree with what everyone said, essentially the BLUF is (bottom line up front) that you must make sure you qualify for the tax credit or tax discount before you start counting on it, depending on how you like look at it. You will owe Joe Biden and or he will owe you something. Sounds about right.

 

[GData]

7500 Federal Tax credit is supposed to become a PoS (point of sale) credit starting January 2024.
If your full-year 2024 income tax owed doesn't exceed 7500, then you will owe the difference back.
But you get the full credit upfront, so financing might be slightly easier.

Once the tax credit becomes a PoS discount, it will have a full $7500 cash value for all buyers who qualify, which means Telsa will likely raise prices. That's how these subsidies end up -- they're just zero sum for consumers. Remember several years back when Tesla lost the $7500 credit because they sold more than 200k cars per year? They had to cut prices within a month. Tax credits cause prices to rise for consumers

 

[tangible1]

Once the tax credit becomes a PoS discount, it will have a full $7500 cash value for all buyers who qualify, which means Telsa will likely raise prices. That's how these subsidies end up -- they're just zero sum for consumers. Remember several years back when Tesla lost the $7500 credit because they sold more than 200k cars per year? They had to cut prices within a month. Tax credits cause prices to rise for consumers

exactly what was discussed earlier in this thread.
this applies to most govt subsidies - prices rise to capture the increased money supply.
for another example, college tuition and student loan availability.