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With no $7,500 credit, could you still afford to buy?

Discussion in 'Model S' started by nleggatt, Jan 9, 2012.

?

Still afford?

  1. Yes

    61 vote(s)
    61.6%
  2. No

    22 vote(s)
    22.2%
  3. Would have to change model

    16 vote(s)
    16.2%
  1. nleggatt

    nleggatt Member

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    Abbotsford, BC
    Read a couple tweets (saw them on my cnn money page) that said something about the US Gov removing the $7,500 rebate (or whatever you call it).

    In Canada we dont get the rebate, but in BC we get a $5k one, so it wont affect me.

    What about others?
     
  2. Todd Burch

    Todd Burch Electron Pilot

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  3. dmckinstry

    dmckinstry Model S - U.S. P - #1649

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    I said yes in the poll. But I can't really "afford" it even with the credit. The point is I want it. I may have to hold off getting it until TSLA stock goes up to at least $40-$45. Unless that happens, I may not be able to convince my wife that we can afford it. We can pay for it, but it would dip too much into savings, especially considering the options I want/need. The tax credit makes no difference now, since we don't get it at the time of purchase.
     
  4. Trnsl8r

    Trnsl8r Blue 85kwh since 12/8/12

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    +1, my thoughts exactly. If they wanted the tax credit to really have an impact, they would let the car maker/dealer file file for it and lower the price-out-the-door accordingly.
     
  5. Thumper

    Thumper Member

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    I believe it is unwise to produce numbers for this question one way or the other. Nay-sayers will either point to results to show the tax credit is unneeded if many of us say we can do without it, or they they will be really convinced they can kill electric cars by eliminating the credit if we say we won't buy without it.
     
  6. Dan5

    Dan5 Member

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    Oct 13, 2011
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    Delran, NJ
    I agree with Thumper on this one. It either makes it look like we don't need it or people saying that this is an artificial demand based on the tax credit.
    I'll be getting mine hell or high water, although the 7,500 credit does help-
    The extra 7.5 K makes it so middle class people can afford it.
    It also helps that as of 2004 ZEV's are sales tax exempt in NJ (hopefully that stays in place)
    NJDEP - Clean Vehicles

    If you take a fully loaded performance non-signature, you're looking at 109 K, without tax breaks. IN NJ with all the federal and state tax breaks, it takes off about 15,000
     
  7. Rifleman

    Rifleman Now owns 2 Model S's!!!

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    I can't really afford the Model S even with the Tax credit (this does not stop my from saving every cent I can in an effort to buy one anyway). Getting rid of the tax credit would make this car significantly more difficult for me to obtain, and would probably force me to push back my purchase by 6 months or so, but as I am already reaching farther than I normally would on a car, I cant say that it's elimination would stop my ultimate purchase of my dream car.
     
  8. gg_got_a_tesla

    gg_got_a_tesla Model S: VIN P65513, Model 3 Res Holder

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    Echo Rifleman's thoughts. And, I've sworn to myself that, given how much I'm pushing the family budget to get into the Model S, I'll do whatever it takes to make it last 12+ years at the least!

    Just did the raw math the other day:

    60 kWh ($67,400) + Options (pano + metallic + tech = $6,000) = $73,400
    Destination charge (just a guess given the Roadster's $1,950) = $1,100
    Tax, title and registration (as per CA DMV's online calculator) = ~$7,000
    ==============
    Total: $81,500

    I'll probably put $26,500 down to make it an even $55,000 loan. With my credit union offering 2.99% or less on 72-month terms, the payment would end up around $835 per month!

    After I get the $7,500 fed tax credit and, if all goes well, $2,500 from Calif., I can pay that $10K towards the loan to reduce the loan period by about 13 months.

    It was painful to have these numbers staring back at me, but, as Mycroft said before, you only live once!
     
  9. shark2k

    shark2k Member

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    West Orange, NJ
    Since it is a tax credit you technically aren't going to get that $7500 back. That would be a tax rebate. The credit is supposed to be used to reduce the amount that you owe. I don't know if this is how it actually worked out for the Roadster or other EVs, but I know it didn't actually work this way when we got our solar panels, even though every one I talked to that knows about tax stuff said we wouldn't actually get the money. I also saw that on an official definition I believe.

    -Shark2k
     
  10. augkuo

    augkuo Member

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    Berkeley
    Yes it's a tax credit which means that you will get $7500 taken off your taxes. You'll either get a check from the Treasury department after you file your taxes and that amount will be added to your overpayment or you just pay $7500 less. If you want the money sooner, you can just add more deductions to your W-9 or pay less on your quarterly installments. If you pay less than $7500 in Federal taxes then you'll just get that back. The California program though is a $2500 rebate so you'll get a check from the state but only if there are enough funds left.
     
  11. shark2k

    shark2k Member

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    The issue I have with this is from the little research I just did, this tax credit appears non-refundable which means that you must have tax liability of at least $7,500 dollars in order to take advantage of it. If you have less then (say $3,000) you will only be able to use that much of it. I am not sure if it can carry over to the next tax year. What this says is that you are not going to be getting that money back.

    -Shark2k
     
  12. gg_got_a_tesla

    gg_got_a_tesla Model S: VIN P65513, Model 3 Res Holder

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    Well, for most "W-2 employees" (who are considering the Model S), the tax liability should 'comfortably' be more than $7,500. Might be obvious, but, to be clear, the tax liability here is what one'd owe on the (income - deductions) before accounting for taxes withheld already through payroll and such. AMT's a pain in the proverbial though...
     
  13. Trnsl8r

    Trnsl8r Blue 85kwh since 12/8/12

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    With the risk of repeating myself, the only thing I have against TM right now is how they advertise the price as if the $7500 just comes off the price tag like water off a duck.
     
  14. shark2k

    shark2k Member

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    I appreciate any help explaining this to me. I guess it is just a POV issue and how I am seeing it. I guess I am seeing people mention it as they will get the money back.

    -Shark2k
     
  15. augkuo

    augkuo Member

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    If you already know that you are getting the car this year, increase your deductions so that less federal taxes are taken off your paycheck and you'll get the money now instead of later.
     
  16. shark2k

    shark2k Member

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    I can't actually afford the Model S unfortunately.

    -Shark2k
     
  17. John_DeDe

    John_DeDe 2 Model S Family :)

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    San Jose, CA
    I COMPLETELY agree!! Cash out to us upon purchase is really $7500 more than what is stated...
     
  18. Robert.Boston

    Robert.Boston Model S VIN P01536

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    If you send in estimated quarterly taxes, or if you accurately estimate your deductions to cause withholdings to reflect expected net tax liability, you can get the credit in your pocket before you have to send a check to Tesla.
     
  19. Iz

    Iz EVs are here to stay

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    I would have to downgrade to the 160-mile pack with same options or stay with the 230-mile pack and scale back options.
     
  20. AnOutsider

    AnOutsider S532 # XS27

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    How's that? I don't think I'm going to owe since I pay so much in taxes as it is. I was thinking of rigging it so I paid less taxes this year just so I could use the credit (also getting a credit for geothermal installation)
     

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