TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Wonder how many people are going to flip their Model 3?

Discussion in 'Model 3' started by zp85, Apr 5, 2016.

  1. zp85

    zp85 Member

    Joined:
    Apr 4, 2016
    Messages:
    10
    Location:
    Fort Wayne Indiana
    Most highly anticipated products like iPhones or gaming consoles end up for a premium on eBay if the supply does not keep up with the demand. Think that will be the case with the Model 3?
     
  2. Bankroetlama

    Bankroetlama Member

    Joined:
    Mar 30, 2016
    Messages:
    225
    Location:
    Mechelen
    Flipping a $1000 smartphone is a lot easier than a $40 000 car
     
  3. stopcrazypp

    stopcrazypp Well-Known Member

    Joined:
    Dec 8, 2007
    Messages:
    7,047
    You also don't get the federal tax credit (in the US) if you flip so that will play a big factor in this.
     
    • Like x 1
  4. Tiberius

    Tiberius Member

    Joined:
    Apr 4, 2016
    Messages:
    270
    Location:
    SoCal
    I think its highly douchy for someone to plan to do this. I'm sure some are due to bad luck but I can't look at the cars for sale forum without getting annoyed.
     
    • Like x 1
  5. Darryl

    Darryl ModelXTracker.com Co-Adm

    Joined:
    Jul 27, 2015
    Messages:
    496
    If you are one of the lucky ones to get the $7500 tax rebate you won't want to flip as this could legally effect you eligibility for the rebate. You cannot sell the reservation as it is prohibited by Tesla. It looks like they will be adding a second factory in Europe and may complete the buildout of the Fremont early. There will probably be an estimated 500k orders by the time production starts. Probably 20% will drop out by then leaving only around 400k orders to be filled. . This is about 10 months of production if they can get all three factories at full production. If it works like the Model X someone can order last minute, after production starts, and order a loaded car and move up towards the top of the list past those who ordered less optioned cars. Therefore, like the Model X even though there were a rumor of four to five people selling their new car this was never verified. As soon as people realized they could order a fully loaded car and get it in less than 8 weeks the after market sellers disappeared.
     
  6. igotzzoom

    igotzzoom Member

    Joined:
    May 26, 2013
    Messages:
    838
    Location:
    Laguna Hills, CA
    If I go through with the purchase, I intend it as my daily driver.
     
    • Like x 2
  7. Drivin

    Drivin Member

    Joined:
    Feb 7, 2016
    Messages:
    964
    Location:
    CA
    How could it affect you legally?
    From the IRS:
    If you buy the car, have it delivered, title it in your name, drive it for a day and decide to sell it the next day, seems that you are eligible. There doesn't seem to be a holding period.
     
    • Informative x 1
  8. stopcrazypp

    stopcrazypp Well-Known Member

    Joined:
    Dec 8, 2007
    Messages:
    7,047
    He is talking about this part: "The vehicles must be acquired for use or lease and not for resale." If you buy it to flip, you are clearly acquiring it for resale. While there is no holding period, that seems to violate the provision. No idea if IRS had ever enforced this.
     
  9. Drivin

    Drivin Member

    Joined:
    Feb 7, 2016
    Messages:
    964
    Location:
    CA
    Yeah. But there is no way to prove that it was bought for resale unless you advertise it before you own it.

    I bought it
    Registered it.
    Drove it.
    Realized I don't like it as much as I thought or wanted to buy a pony instead or I bought it for my wife as a surprise who didn't like it since the frunk wasn't to her liking.
    Advertised it for sale the next day.
     
    • Like x 3
    • Helpful x 1
  10. david_

    david_ New Member

    Joined:
    Apr 1, 2016
    Messages:
    2
    Location:
    USA
    Still owe the IRS 100% of the credit back.

    See 26 CFR 1.30-1 (b) (4) and 26 CFR 1.30-1 (b) (5)
     
    • Informative x 1
    • Dislike x 1
  11. anticitizen13.7

    anticitizen13.7 Enemy of the Status Quo

    Joined:
    Dec 22, 2012
    Messages:
    2,551
    Location:
    United States
    I'm sure that some people out of the 275k or so reservation holders (give or take a few k depending on how many cars each person reserved) will attempt to flip their Model 3, but I suspect the vast majority won't flip.

    Why give up the opportunity to experience ownership of a historic, game changing automobile? I like making money too, but what's the point of money if you can't have fun with it sometimes?

    If people have money to speculate on a Model 3 and think it will be that hot, they might as well invest in TSLA. I'm sure that anyone who put down 40k on a Model X Signature with intent to flip is now sorry they tried to flip rather than invest in the company stock.
     
  12. Drivin

    Drivin Member

    Joined:
    Feb 7, 2016
    Messages:
    964
    Location:
    CA
    Nope.

    I don't see this case in there. 26 CFR 1.30-1 - Definition of qualified electric vehicle and recapture of credit for qualified electric vehicle.

    There is only a recapture event (defined in (2) (1) ) if any of the three conditions exist.

    None of those conditions apply to selling a car that will still be used as an EV.

    (4) and (5) only applies to recapture events.
     
    • Like x 2
  13. Drivin

    Drivin Member

    Joined:
    Feb 7, 2016
    Messages:
    964
    Location:
    CA
    1. People can order more than one.
    2. People can both put in an extra order as well as buy the stock. Way back, the Mazda Miata was selling for 100% over the MSRP. There could be a heck of a return on a refundable $1k deposit held for only 2 years...or not...
     
  14. Config

    Config Member

    Joined:
    Dec 8, 2015
    Messages:
    64
    Location:
    Mountain, USA
    Many probably may not get it but I'm sure there are a few considering doing that for whatever is worth for them.
     
  15. kmtl

    kmtl Member

    Joined:
    May 31, 2015
    Messages:
    82
    Location:
    Cincinnati, OH
    My early reservation number car I'll flip...in about 30 years when it's a classic, fully stock barn find. It will be the post of the year on bringatrailer.com and they'll be amazed when it sells for $3 million...due in part to the never opened tchotchke in the glove compartment that Elon sent me for waiting in line in the rain.

    I'll keep the late res# car for three years then replace it with the new flying Tesla Model WTF
     
    • Like x 2
    • Funny x 2
  16. SageBrush

    SageBrush Active Member

    Joined:
    May 7, 2015
    Messages:
    1,704
    Location:
    Colorado
    The next line is: knocked 10% for depreciation ..

    Thankfully, Tesla will not allow reservations on to a secondary market. That pretty much kills the speculators in my opinion, because very few would have the 35k+ front money.
     
  17. EBenke

    EBenke New Member

    Joined:
    Apr 5, 2016
    Messages:
    3
    Location:
    Where it's warm and sunny
    Yep, what igotzzoom said.
     
    • Like x 1
  18. Bankroetlama

    Bankroetlama Member

    Joined:
    Mar 30, 2016
    Messages:
    225
    Location:
    Mechelen
    I don't think that would be an issue for speculators. But who is going to pay a premium to have the Model 3 early?
    For the no option base version of Model 3, you clearly attract a price sensitive customer so they won't pay extra. And a customer that wants a full option is given priority in production by Tesla.
    Will there be people willing to sell their Model 3 for a premium? Yes. Will there be a significant demand for it? I think not.
     
  19. Mark Z

    Mark Z Active Member

    Joined:
    Mar 12, 2013
    Messages:
    1,334
    Location:
    North Orange County
    If driven fast enough around a dangerous curve, would it even be possible to flip Model 3?
     
    • Funny x 6
    • Like x 1
  20. Darryl

    Darryl ModelXTracker.com Co-Adm

    Joined:
    Jul 27, 2015
    Messages:
    496
    It comes down to intent. The IRS regulation says the car cannot be intended for resale to be eligible for the rebate. There is a big difference between keeping it for several months and then selling it. On the other hand if you purchased it, took delivery and the next day sold, it IRS could probably ligitably say you intended to sell you when you purchased it. Also the new buyer is not eligible for the rebate because the rebate are only available if you purchased it directly from the dealer/manufacturer. Because most state have a 6-8 percent sales tax you have to figure that into your flipping equation. There were several who purchaded Model X's to resale who were never able to sell it as Tesla is turning around orders for loaded cars very fast.
     

Share This Page