$7500 off at time of purchase - issue

[dangerdman]

I went to take delivery of my 2023 XLT on Jan 2, and my dealer was not able to register the vehicle on the Treasury Dept website. When they tried to advance to a next screen when registering the vehicle, it apparently kicked them to the initial screen.

Today, still no luck. Luckily the dealer provided a loaner car.
Has anyone else successfully purchased an EV in the past two days? Aside from my issue, I have not heard of any systematic problems.

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[TaxmanHog]

When they tried to advance to a next screen when registering the vehicle, it apparently kicked them to the initial screen.

You're one of the first to report about this new process.

Knowing what I know about IRS processing systems and date at the moment ..... this period of time is called "Dead Cycles" at IRS, a period of time to clear out statute expired information and clear the decks [databases] for new information which will start coming in shortly.

The initial few hours/days of starting off the new year often experiences data processing glitches, hopefully what ever the short coming, it will be resolved shortly.

 

[Tundra]

I purchased my Lighting yesterday I was the first customer to use it at my dealership; I gathered it was not as smooth for them either, but it did not hold up the sale.

Basically I had to sign something saying if they could not get the money it was on me, which makes sense.

The dealership finance manager later informed me after the process was completed, that I was probably the only customer they were doing this for. From then on they would be making customers front the $7,500 until they got it from the government, but as that was not the terms we discussed they were honoring what we had talked about. Good on them.

My hunch is this is going to heavily depend on the dealership and how on the stick they are, it is going to be a messy process.

 

[maksimfa]

I purchased my Lighting yesterday I was the first customer to use it at my dealership; I gathered it was not as smooth for them either, but it did not hold up the sale.

Basically I had to sign something saying if they could not get the money it was on me, which makes sense.

The dealership finance manager later informed me after the process was completed, that I was probably the only customer they were doing this for. From then on they would be making customers front the $7,500 until they got it from the government, but as that was not the terms we discussed they were honoring what we had talked about. Good on them.

My hunch is this is going to heavily depend on the dealership and how on the stick they are, it is going to be a messy process.

I am guessing that is going to be breaking some rules they signed up for. if they make people front the money. I am sure within a few weeks this will be much much smoother as everyone understands the process.

 

[bmwhitetx]

I am guessing that is going to be breaking some rules they signed up for. if they make people front the money. I am sure within a few weeks this will be much much smoother as everyone understands the process.

I think I read where the dealer has to sign up for this and it's optional for them. A good dealer would do it but I get that for some it is too much of a headache and an unknown so they won't.

 

[JRT]

Here is my thought and lack of understanding. The up front at point of sale sounds great and all, but the $7,500 has never been fully guaranteed by IRS. For my Mach-e my taxes owed was less then the max rebate so I got less. If everyone takes the max $7,500 out the door I fear you could have an additional tax burden when you do your 2024 taxes and not qualify for the full $7,500. How this can be checked or done, a year in advance of taxes due, by the IRS is probably not been figured out and will mean a lot of people "surprised" to have to pay back the refund they do not qualify for.

 

[bmwhitetx]

I fear you could have an additional tax burden when you do your 2024 taxes and not qualify for the full $7,500.

It has been suggested that the IRS will not claw back if your tax liability is less than $7500. See here for one report, there are others. I didn't look to see if this is on the IRS site though.

They have said you will get hit if it turns out you exceeded income limits. For those individuals the safer bet is to not take the credit at purchase and wait until taxes are done to be sure.

 

[maksimfa]

It has been suggested that the IRS will not claw back if your tax liability is less than $7500. See here for one report, there are others. I didn't look to see if this is on the IRS site though.

They have said you will get hit if it turns out you exceeded income limits. For those individuals the safer bet is to not take the credit at purchase and wait until taxes are done to be sure.

Correct this is intern a fully refundable tax credit now. If you don’t make or have a tax liability, you do not have to pay it back

 

[Tundra]

According to this government document, and my accountant, the point of sale moves the tax liability from the buyer onto the dealership. So your personal tax liability when purchasing is now immaterial, however you must still be under the income cap and the vehicle must qualify; it should be noted that much fewer vehicles qualify this year.

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This was part of our decision to purchase this week. We got a 48 panel solar system installed this past year, so with that credit, we did not have tax liability last year, or this year. If we had purchased in 2023 we would not have qualified for the $7,500, nor would I have under the previous rules this year. I was pretty ecstatic to find out this past week that we could still get $7,500 off, we had almost purchased the truck at the end of last year!

---

With Ford raising their price for the 2024 model I don't feel like I could have purchased at a better time. I was able to get $6,500 under MSRP on a new Pro, get the low interest on the loan, and between state and federal rebates that equates to $10k. A little over $37k before taxes out the door. I feel VERY happy with the quality of vehicle for that price.

 

[dangerdman]

As an update, my dealer could advance further into the online process with the Treasury, but they are still not able to complete it.
On Thursday they let me take the truck with dealer plates (technically they still own it). Very decent of them as this is out of their control.

 

[hturnerfamily]

the Tax 'Credit' rules for EV purchases has gone from a:

'you must make $$$$$ and have a high tax burden to Qualify for the full credit, taken on your taxes on the following filing year'

to a:

' you must NOT make $$$$, and your vehicle must NOT be 'too' expensive, and you can easily take the credit 'immediately' at the point of sale'....

crazy how things have changed.

 

[Maquis]

the Tax 'Credit' rules for EV purchases has gone from a:

'you must make $$$$$ and have a high tax burden to Qualify for the full credit, taken on your taxes on the following filing year'

to a:

' you must NOT make $$$$, and your vehicle must NOT be 'too' expensive, and you can easily take the credit 'immediately' at the point of sale'....

crazy how things have changed.

Except that the “easily take the credit” part hasn’t been easy as intended. Yet.

 

[TaxmanHog]

 

[maksimfa]

According to this government document, and my accountant, the point of sale moves the tax liability from the buyer onto the dealership. So your personal tax liability when purchasing is now immaterial, however you must still be under the income cap and the vehicle must qualify; it should be noted that much fewer vehicles qualify this year.

---

This was part of our decision to purchase this week. We got a 48 panel solar system installed this past year, so with that credit, we did not have tax liability last year, or this year. If we had purchased in 2023 we would not have qualified for the $7,500, nor would I have under the previous rules this year. I was pretty ecstatic to find out this past week that we could still get $7,500 off, we had almost purchased the truck at the end of last year!

---

With Ford raising their price for the 2024 model I don't feel like I could have purchased at a better time. I was able to get $6,500 under MSRP on a new Pro, get the low interest on the loan, and between state and federal rebates that equates to $10k. A little over $37k before taxes out the door. I feel VERY happy with the quality of vehicle for that price.

That's awesome! Have a couple of dealers that are offering $5k off of sticker on XLT, but on Pro lowest I saw was $2000.

What dealer was this offering $6,500 on the pro?

 

[hturnerfamily]

and, I've seen some dealers list some of the Lightnings as 'PRO's, and yet they are XLTs, etc., with the 'higher' pricing possibly scaring off some potential PRO buyers... Anniston's FORD dealer has a PRO, and an XLT, disguised as a PRO... I guess someone is not spell checking, or fact finding, or paying attention to WHAT information they put on their website. Look at the sticker to make sure.

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