Yes, but the "massive amount of used electric cars" have short range and can't use the superchargers.
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Will you still buy a Model 3 if the federal tax credit ends?
- Thread starter Mrs Rubbertoe
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- Model 3
My experience with the tax credit having used it to buy a Volt was I never really saw the money. I financed the full price of the car minus my normal down payment (vs taking out an additional $9000 from somewhere to offset the state and federal credits) then I applied for the tax credit when I did my taxes and applied for the state rebate. Got $9000 back, but when I sold the car a few years later, that $9000 was added to the normal car depreciation amount. Which was a huge hit percentage-wise on a $35k car. So I didn't really save $9k in the end. That is the biggest reason why used EVs are soooo cheap.
Now, the Tesla dynamic will be slightly different since the credit will expire at some point. But there is an argument to be made that the manufacturers are the only ones reaping the benefits of those tax credits.
In each segment there are a good number of them.
When the battery cost was high the tax rebate made sense. Now that the battery costs have dropped considerably so has the cost per mile.
The tax rebate also hurts the resale price. So it's not exactly friendly to someone who wants the car to retain it's value. It's always gone to the manufactures margins.
CarlitoDoc
Member
To be fair, this question should be best asked "After" a test drive.
Cars depreciate like falling rocks, regardless of Tax Credit.
Don't kid yourself into thinking that a higher net cost will decrease depreciation.
In my case, with leasing a Volt, the Tax Credit translated into a $5500 Cap Reduction on my Volt Lease.
It significantly lowered my lease payment.
On top of that, the $1500 State rebate covered my 1st (5) payments.
I assure you a Tax Credit is better than no Tax Credit.
The only thing that can help depreciation is inflation, and we don't want that.
voip-ninja
Give me some sugar baby
I see them doing something else entirely like eliminating the low range battery but the base price goes up $5K or the PUP is standard in USA market but price is reduced, etc.
Tesla probably has a lot of bean counters who know how the federal tax credit will affect their sales and what levers to pull to keep things going.
BluestarE3
Active Member
Without the credit, I'd have to consider dropping the PUP. On second thought, I know I'd regret everyday not getting the gorgeous all glass roof, so I'd find a way to pay for the upgrade package even without the credit. 
insaneoctane
Well-Known Member
If they eliminate the low range battery but the base price goes up $5K, doesn't that mean, in effect, the $9K LR option price is effectively reduced by $4K? That is exactly what I was suggesting. (I think)
voip-ninja
Give me some sugar baby
Yeah it's late so I guess we're saying the same thing. I guess my point is that what Tesla is not going to do is reduce the price of the base car below $35000 just because the federal credit is gone.
insaneoctane
Well-Known Member
alseTrick
Active Member
Yes.
Yes.
And I will spend $5k for premium upgrade and probably $1k for white...since Tesla is being ABSURD and not offering free white paint.
I plan to keep the car for as long as I can, and I expect to save thousands of dollars on fuel costs over the lifetime of my ownership.
stopcrazypp
Well-Known Member
For those of us in California, keep in mind there is another credit being introduced that may cover things even after the federal credit expires.
California AB1184
Another thing to keep in mind is how the phase out works (it does not immediately expire after 200k US sales):
Tax Credit Clarification
California AB1184
Another thing to keep in mind is how the phase out works (it does not immediately expire after 200k US sales):
Tax Credit Clarification
I'm almost afraid to ask how you know about either place. But I'll bet you'd liven up this forum if you tell us.
Waiting4M3
Active Member
There are 1800 new reservations each day even though they will surely not qualify for the tax incentive.
It doesn't work like a typical car rebate at all. In a rebate you normally get the money right then and can apply it to the cost of the car. In this case you won't see the money until you file your taxes for the year you bought it in. That could be months or over a year later. Sure you can play with your withholding to get some of it back faster but you can't use it on the base price of the car, the best you could do would be to pay down the loan faster.
Also, how much you have withheld does not affect your eligibility for the credit, it is strictly based on your tax liability.
Keep in mind though that the Volt's depreciation has been quite different from Tesla. There have been articles talking about this. Mostly to due with how fast the subsequent newer models of the Volt were coming out with better technology. Tesla models have not seen the same type of depreciation.
We too had a Volt and I dumped it really fast because I noticed the depreciation it was going to have. The Tesla does depreciate too (let's not kid ourselves) but it has shown to hold it's value much better than a lot of other cars.
The $1k deposit can be used for the paint upgrade.
Gas is cheap. You'll probably save a lot more on regular maintenance, especially if you keep it more than six years.
Oh, I expect to lose even more by dollar amount on my Model S than the Volt. But that is just a fact of life for higher dollar cars: the % ends up working out to a significant chunk of change.
I bought my 2013 classic S for $59k in December and I expect to trade it in the mid-20s or less as it will be out of warranty, three AP versions behind, and over 100k miles at that point. So that will work out to more $$ than the $35k Volt which I traded for $9500.
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