Delay Placeholder Vehicles

[DucRider]

Well, I've never had anywhere near a tax bill of $7,500, so I'm guessing only big earners will even qualify for taking the entire $7,500. At most I'd get $2500-3000 of the credit. Damn fine print. Booo

Many people confuse a refund amount with tax liability.
Very few people with <$3K of tax liability (<$30K of taxable income) will purchase a $70K+ vehicle

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[RWerksman]

Update: I've come to terms on purchasing a AWD Model S. Tentative pickup date is Aug 21. It's the first time I've purchased from an individual in nearly 20 years.

 

[Trekkie]

Don't people need to itemize their taxes just to get the incentive anyway?

I've bought 5 cars in the last 10 years that got various level of incentive (hybrid/Full EV)

You do not need to itemize. You just need to owe enough in taxes to get the rebate. So if you owe $350 in total tax for the year you get $350 of the rebate. If you owe $24,500 in taxes you get $7500 back (tax owed would be 17000). You never just 'get' the money back, as the check the IRS sends you is just what you overpaid.

Edit: Also, if you lease the car, you don't get the credit, but the leasing company passes that savings onto you (sometimes, be careful and watch closely) which is a 'faster' way to get the credit if you're only keeping the vehicle for short term

 

[screamingkarts]

Picked up a VW ID4 1st Edition from a dealer few weeks back. It is a nice car and working out good so far with the free DC fast charging. Probably trade in ID4 one the R1s LE is available (hoping sometime next year). Until then enjoy the free charging

 

[Gshenderson]

I've bought 5 cars in the last 10 years that got various level of incentive (hybrid/Full EV)

You do not need to itemize. You just need to owe enough in taxes to get the rebate. So if you owe $350 in total tax for the year you get $350 of the rebate. If you owe $24,500 in taxes you get $7500 back (tax owed would be 17000). You never just 'get' the money back, as the check the IRS sends you is just what you overpaid.

Edit: Also, if you lease the car, you don't get the credit, but the leasing company passes that savings onto you (sometimes, be careful and watch closely) which is a 'faster' way to get the credit if you're only keeping the vehicle for short term

Lots of people get tripped up on what “owe” means. They think it means that they are paying more at the end of the year vs getting a refund. That is NOT how the credit works. It’s based on whether you had an overall tax liability for the year, and therefore includes the taxes withheld from your paycheck. So if you had $10,000 withheld and when you filed your return you got a $1,000 refund without the credit, then you’d be eligible for the full $7500 credit even though you were getting a refund already.

 

[DucRider]

Lots of people get tripped up on what “owe” means. They think it means that they are paying more at the end of the year vs getting a refund. That is NOT how the credit works. It’s based on whether you had an overall tax liability for the year, and therefore includes the taxes withheld from your paycheck. So if you had $10,000 withheld and when you filed your return you got a $1,000 refund without the credit, then you’d be eligible for the full $7500 credit even though you were getting a refund already.

It can either help clarify or create more confusion by explaining that it is a "Non-refundable" tax credit.
That really means that you can never use it to create a negative tax liability.
If you had $10K in withholdings and had a $10K tax liability before the credit, your tax liability would be reduced to $2,500 and you would get a refund of $7,500.
If you had withholdings of $5K and had a tax liability of $5K before the credit, your tax liability would be reduced to $0 and you would get a refund check for $5K.

 

[RWerksman]

Update: I've come to terms on purchasing a AWD Model S. Tentative pickup date is Aug 21. It's the first time I've purchased from an individual in nearly 20 years.

Done pending the title work:

90D with about 14 months of warranty on it. That should align nicely with a late 2022 delivery. (fingers crossed) That, plus a range of ~260mi and a cost in the $30's are as good as place as I can be at for the time being.

I'm just hoping that history doesn't repeat itself as my super-early 2012 S 85 was not a good experience. So far after ~350 miles, all is well.

 

[PostMinivanDad]

Just traded our 2018 Odyssey for a 2021 Pacifica Hybrid and found a pretty sweet deal (considering current car rental prices) on a month to month, no contract lease for a 2021 M3 Standard Range +

We haven’t used a drop of gas in the first week with the Pacifica and I am pretty stoked to be able to have the family go fully electric a bit earlier than planned. I also love having a PHEV in the fleet: it relieves the anxiety of the family having to take a trip where chargers are scarce.

The M3 is no R1S, but it is still a good placeholder as it will get us the habit of managing garage space for charging, as our “double” garage will certainly not allow for both the Pacifica and R1S to charge at the same time.

 

[Rivuylkill]

I'm stuck in various levels of indecision.

I have truck because I have a boat to tow, but on top of the season winding down, my towing /boat usage is way down, but mileage is way up due to changes in circumstances.

I'm probably at least a year out from a rivian, maybe more since my pre-order is pretty late and there's no local service center on the horizon yet. I also put 100 on a model y in early July which has been dragging on, but should hopefully be ready next month. I haven't minded since I was waiting for some real life reviews on the rivian.

My truck is at 150k, so not critical but the gas and occasional repairs are a pretty good chunk every year. I'm not sure I really want to carry two vehicles but the truck sitting around for tow /truck duty isn't that much of a drain.

I guess I'm really just debating chugging on with the truck for a year or two until a rivian is ready, or take the model y and hope the trade in /sell value is still pretty good in another year +. To that end I'm also debating if it's worth just going for it next month or adding a 3 month delay to see how the tax credit shakes out, since if it came back for tesla that would eat into my trade in I bet.

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