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Will you sell your new Model 3 for a profit?

Discussion in 'Model 3' started by sickfox, May 23, 2016.

  1. sickfox

    sickfox Member

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    Supply and Demand! We know that there is a demand for the Model 3. For owners of Model S & X, we know how excruciating it is to wait for months to take home our new ride. Some people got impatient and paid extra just to get their hands on a new toy. This probably didn't happen a lot on MS and MX because of the price of the car, but for the M3, it's a lot more affordable to the masses. So the question is...

    When you receive your brand new Model 3, while the rest of the world awaits for their order for another year or two, would you be willing to sell your brand new Model 3 for a profit?

    Or Are you willing to pay extra just to get your hands on the Model 3 sooner than the rest of the world?

    What are your thoughts?
     
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  2. JPUConn

    JPUConn Member

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    Depends how well my family fits in it. If it lacks space I'll keep the S for family needs and one 3 - selling th 2nd 3 likely for a profit especially if I get the tax credit. If it's spacious enough I'll sell the S and keep both 3's I reserved.
     
  3. alseTrick

    alseTrick Member

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    Do you still get the tax credit even if you don't retain ownership of the vehicle?
     
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  4. inspron

    inspron Member

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    No one is willing to pay the double sales tax and a lost of the tax credit. Arbitrage is great, but in this instance it's dumb. OP, you are not the first 100,000th person to have thought of this. Carma could bite you in the ass when tax time comes around and the IRS disqualifies your credit because you don't own the car as of Dec 31st and the buyer can't take the credit either because he legally purchased a used vehicle. hahahahah

    Common sense say that same person could just buy a CPO or a brand new S over a Model 3 + twice the sales tax.
     
  5. JeffK

    JeffK Active Member

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    The tax credit isn't supposed to be for reselling it. It says that specifically on the tax form. If caught that's tax fraud.

    So legally, if you turn around and flip the car you've lost the tax credit and the new owner doesn't get it either. You just wasted it for everyone.
     
    • Like x 1
  6. Drivin

    Drivin Member

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    Depends. If there are mark ups as big as there were when the Mazda Miata first came out, I may part with one of the several reservations our family has.
     
  7. Drivin

    Drivin Member

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    #7 Drivin, May 23, 2016
    Last edited: May 23, 2016
    You can't use the tax credit if you intended to resell it when you first bought it, but if after buying it, you changed your mind and decided to sell it, you can and can keep the federal tax credit

    Some State credits work differently, where in some cases you have to have the car for a certain period of time.

    For Federal, yes.
    For some states, the tax deduction can depend on the holding period (e.g. hold it only for a year and get a partial deduction).
     
  8. Drivin

    Drivin Member

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    Where is it stated in IRS that you have to own the car as of Dec 31st? That does not appear to be the case.

    All that it seems to say is that you have to have purchased the car by Dec 31st. Otherwise, someone can buy a car on 1/1/15 and sell it on 12/30/15 to get a new one and not get the credit on the first car.
     
  9. JeffK

    JeffK Active Member

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    Good luck proving that to the IRS though if they decide to investigate.
     
  10. Dynastar

    Dynastar Member

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    Not all of us pay sales tax. Right now I'm undecided between an S and a 3. If I end up getting an S I'll offer my 3 reservation to family members, but if they don't want it I expect it will be possible to make money off it.
     
  11. Drivin

    Drivin Member

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    Funny! You have to "prove" you didn't have intent.

    That of course assumes that they somehow find out that you sold the car (how will they even do that?).

    Ok. Let's assume your neighbor turned you in for selling your car, just let them know that you had the car for 3 weeks, put 200 miles on it, and didn't like it. So what? It isn't as if people never sell their car after having for a while. Heck, Tesla even has a sort-of-return policy on leases since they there maybe a chance you may want to do that.

    I think people cheat on actual actions (vs. intent), like not having a license plate up front, or improper tinting, or speeding which is a lot easier to spot that the government rarely does anything about, so the risk of being caught and having them prove what your "intent" was when you bought the car, is a heck of a lot lower.

    Now of course, if you are stupid and put an ad in Craigslist before you get paid for the car, that increases your odds.
     
  12. stopcrazypp

    stopcrazypp Well-Known Member

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    If you sold the car for a profit, it would show up in your capital gains filing with the IRS. If you ever happen to be audited, the time frame of the purchase and sale would give the IRS an impression of whether you bought it for resale or for use. Keep in mind that for IRS cases, the burden of proof is on the tax filer.
     
    • Funny x 1
  13. stopcrazypp

    stopcrazypp Well-Known Member

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    #13 stopcrazypp, May 23, 2016
    Last edited: May 23, 2016
    It really depends on the roll out. Model 3 will be made in much larger volume than the S or X and won't be as desirable a car individually since it simply won't be as rare. The lower price works against it in terms of getting the same absolute premium (measured in dollars rather than percentage of purchase price).

    Price gouging works a lot "better" for non-Teslas because the dealership doesn't have to go through the double sales tax problem.
     
  14. Jason Bourne

    Jason Bourne Member

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    I plan to keep my Model ≡ for as long as I enjoy it. But based on my history for the past 5 years, I usually keeps cars for 18 months then I get tired of them and get something else.

    So if that happens with the Model ≡, I anticipate that I'll be able to resell it at a higher price-to-original price ratio than almost any car - due to demand. I don't expect that I will sell it for more than I paid (but maybe it would happen). But I do forecast that there will be many people who want it real bad once they start seeing them on the road, obviously won't want to wait 12-24 months, and will be willing to pay a premium over the typical cost of a used car to get it.
     
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  15. McHoffa

    McHoffa Member

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    Several reservations? You know they only allow two, right? If they notice, they'll cancel all but two.
     
  16. zenmaster

    zenmaster Member

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    Where are people getting this idea that reservations are transferrable?
     
  17. melindav

    melindav ☰ reserved

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    Likely, 18 months after you receive your model 3, the wait for a new one will be a couple months, not a couple years though.
     
  18. SageBrush

    SageBrush Active Member

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    That you are a speculator and Tesla should cancel your reservation.
     
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  19. electracity

    electracity Active Member

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    I would guess three years due to scaling issues. I see two additional demand drivers too:
    1) People waiting to avoid first year cars
    2) Additional demand after the second reveal.


    It is possible that double booking from a single account will not receive two early invitations to configure. Sellers naturally dislike scalpers.
     
  20. Tiberius

    Tiberius Member

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    Carma??? Is that like Karma, but for cars? lol
     
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