Do you guys think the XLT EXT battery is a good deal??

[watchdoc]

Found a 22 XLT with EXT range battery and 9.6 pro power. It's a package 310A truck with 18" wheels that was ordered for fleet sales. Approx 10 months old with less than 300 miles on it for $62,622 OTD.

A new XLT EXT range with 312A package rings the bell at around $73k but comes with the tax incentive and would have more warranty.

I'm also wondering if X plan will be available on the lightning anytime soon.

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[greenne]

Found a 22 XLT with EXT range battery and 9.6 pro power. It's a package 310A truck with 18" wheels that was ordered for fleet sales. Approx 10 months old with less than 300 miles on it for $62,622 OTD.

A new XLT EXT range with 312A package rings the bell at around $73k but comes with the tax incentive and would have more warranty.

I'm also wondering if X plan will be available on the lightning anytime soon.

When you say "ordered for fleet sales" was it ever titled and/or put into service?

 

[watchdoc]

When you say "ordered for fleet sales" was it ever titled and/or put into service?

yes, it's now a used vehicle that esstentially hasn't been driven more than a couple hundred miles.

 

[greenne]

yes, it's now a used vehicle that esstentially hasn't been driven more than a couple hundred miles.

Do you have enough tax liability to take the full $7500 tax credit? (i.e. taxable income ~$95k)

 

[watchdoc]

Do you have enough tax liability to take the full $7500 tax credit? (i.e. taxable income ~$95k)

yes, I have enough tax liability. If I were to buy new, I would wait til year end and try to score a deal on a 23 or just order a new 24.

 

[greenne]

yes, I have enough tax liability. If I were to buy new, I would wait til year end and try to score a deal on a 23 or just order a new 24.

Given those circumstances, I think its a pretty good deal. Personally I'd take it at that price given nearly perfect(like new) condition.

A lot can change by the end of the year. Also don't expect any big changes for MY24. With t3 coming soon, Ford isn't going to invest a lot of $$ in Lightning updates.

Buy and enjoy!

 

[Taranis]

I believe the tax credit for used vehicles is $4,000. https://www.irs.gov/credits-deductions/used-clean-vehicle-credit

 

[watchdoc]

Given those circumstances, I think its a pretty good deal. Personally I'd take it at that price given nearly perfect(like new) condition.

A lot can change by the end of the year. Also don't expect any big changes for MY24. With t3 coming soon, Ford isn't going to invest a lot of $$ in Lightning updates.

Buy and enjoy!

I'm still up in the

I believe the tax credit for used vehicles is $4,000. h
ttps://www.irs.gov/credits-deductions/used-clean-vehicle-credit

The used vehicle tax credit only applies to transactions $25k and below.

 

[Taranis]

Ah, very true. Then I don't think you'll be able to get the credit if the truck qualifies as used instead of new.

 

[Taranis]

Also, one note. The $7500 credit can be taken by the dealer at the point of sale beginning in January 2024, so you won't have to meet the income requirements from then on (in my understanding). The dealer will be able to just give you the rebate at the time of purchase.

 

[watchdoc]

Also, one note. The $7500 credit can be taken by the dealer at the point of sale beginning in January 2024, so you won't have to meet the income requirements from then on (in my understanding). The dealer will be able to just give you the rebate at the time of purchase.

This is incorrect. The income requirements will still apply and you can only claim the credit once every three years.

 

[Taranis]

If that's true, and I'm not doubting it is, it seems that would add an extra layer of complexity and burden for the dealer and even the purchaser. The purchaser would have to prove their household income meets the federal requirements. When you file taxes that's easy because all of your income info is in your tax return. But if you're doing this at the dealer then the dealer would have to require that you provide a copy of your last tax return, and then I expect they would have to submit a copy of that return with any request for reimbursement of the rebate to the IRS. So maybe that's the case but it seems poorly conceived if so.

And on the income limits (for folks' info):
The relevant modified AGI thresholds (for the EV tax credit) are as follows:

• Married filing jointly or filing as a qualifying surviving spouse or a qualifying widow(er) - $300,000
• Head of household - $225,000
• All other taxpayers - $150,000

 

[watchdoc]

If that's true, and I'm not doubting it is, it seems that would add an extra layer of complexity and burden for the dealer and even the purchaser. The purchaser would have to prove their household income meets the federal requirements. When you file taxes that's easy because all of your income info is in your tax return. But if you're doing this at the dealer then the dealer would have to require that you provide a copy of your last tax return, and then I expect they would have to submit a copy of that return with any request for reimbursement of the rebate to the IRS. So maybe that's the case but it seems poorly conceived if so.

And on the income limits (for folks' info):
The relevant modified AGI thresholds (for the EV tax credit) are as follows:

• Married filing jointly or filing as a qualifying surviving spouse or a qualifying widow(er) - $300,000
• Head of household - $225,000
• All other taxpayers - $150,000

The burden will be on the taxpayer and not the dealerships. Dealers will continue their shady practices and push the tax incentive on every customer. When the customer files their taxes, the EV tax credit that was taken at the time of purchase will be effectively "added back in" to the tax filers MAGI. This is similar to the MAGI calucations already in place for Obamacare where you predict what your income will be for the following year in order to come up with a tax credit. I'm willing to bet many tax payers will end up screwed at tax time and lose the tax credit due to unforseen circumstances. (capital gains, bonus, obamacare, congress moving the goal posts). There is no IRS guidance what will happen in those cases. In the case obamacare, millions of people lie about their predicted income just to qualify for health insurance. Thus far, the IRS has chosen NOT to make those people pay back the premiums they were not entitled to. This guidance is mostly due to COVID, politics, and medicaid expansion. I expect the IRS guidance on the EV tax credit to be cut and dry like most tax credits. You qualify or you don't and if you took the credit at the time of sale but then don't qualify when you do your taxes, the credit will simply be added back into your income.

 

[Taranis]

So how does the dealer recoup the lost revenue from the tax credit? I figure they would either have to ask the IRS for a refund or they would file it as a deduction from their own taxes? How would that work?

 

[watchdoc]

So how does the dealer recoup the lost revenue from the tax credit? I figure they would either have to ask the IRS for a refund or they would file it as a deduction from their own taxes? How would that work?

The dealership won't lose any money (unless maybe there was intentional fraud on their part). The burden will shift to the tax payer after the purchase and if they don't qualify at tax time, the tax credit will be added back in as income. (this is the same mechanism as obamacare) Again, the IRS hasn't released guidance on these mechanisms yet and probably won't until well AFTER jan 24.

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