IRS Issues Statement on New Plug-In Electric Drive Vehicle Credit (IRC 30D)

[Roy2001]

There is also an additional $4k incentive for used EVs that are under $25k and at least 2 years old.

That $4k is even more restrictive, only applies for families with less than $150k, and used EV itself must be less than $25k. That means at least 5 years old for decent models.

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[astricklin]

That $4k is even more restrictive, only applies for families with less than $150k, and used EV itself must be less than $25k. That means at least 5 years old for decent models.

Ya but if we go by estimated residuals, many mach-e, id4, Ioniq 5 and ev6 should be in that price range in 3-4 years as well. And not just the base trim.

 

[sotek2345]

Ya but if we go by estimated residuals, many mach-e, id4, Ioniq 5 and ev6 should be in that price range in 3-4 years as well. And not just the base trim.

Heck, I think the 4 year residual on our Mach-e GT wasn't too far above the $25k mark. Ford's residuals are very conservative/low.

On the Mach-e, Ford Options still made tons of sense though with the low rate (1.4%) and rebate ($2,500). No such luck on the Lightning.

 

[cvalue13]

So if Ford is accurate in that the 22 trucks will lose about 50% value in 36 months,

have more info on this idea?

if Ford is saying these will loose 50% value in 36 months, I’m going to go immediately flip this truck for an ICE Lincoln

 

[astricklin]

Heck, I think the 4 year residual on our Mach-e GT wasn't too far above the $25k mark. Ford's residuals are very conservative/low.

On the Mach-e, Ford Options still made tons of sense though with the low rate (1.4%) and rebate ($2,500). No such luck on the Lightning.

The big variable is what will the residual actually be. A 2018 Tesla model 3 is selling for close to it's original price. Right now, you could probably sell a mach-e for over MSRP and make at least $7500. If you will be able to walk onto a lot and pick one up, or if you can order one and have it delivered in about a month, then residuals will drop. If EVs are still unobtainable, it's going to hold it's value much better.

 

[PV2EV]

I picked mine up on 7/23….I pointed out the $100 increase in shipping and provided a copy of my online order price details. My dealer pointed out to me that I was price-protected per Ford policy and they credited me that $100.

I would force the issue!

But it still showed on the $1795 sticker, correct?

 

[astricklin]

have more info on this idea?

if Ford is saying these will loose 50% value in 36 months, I’m going to go immediately flip this truck for an ICE Lincoln

Residual on the Ford options plan is around 50% depending on trim. It's hard to say what it will really be, but this is what Ford thinks it will be near.
That's the coin flip with the options plan. If it ends up being worth less, you can walk away, if it's worth more, then you can just buy it out (and either refinance or sell it at a profit).
There was a thread on here somewhere with the chart of residual values. I think they get updated every so often so maybe someone can find the current ones.

 

[Firestop]

But it still showed on the $1795 sticker, correct?

Yes. I brought the issue up when closing the sale (It was on my written checklist I took with me). They asked for a copy of my internet purchase summary…I looked it up on my Ford.com owners page on my phone, printed to a PDF, and emailed it to the salesman. I would recommend taking a printed copy with you to your closing to save you the trouble…..

 

[astricklin]

have more info on this idea?

if Ford is saying these will loose 50% value in 36 months, I’m going to go immediately flip this truck for an ICE Lincoln

It's going to be really hard to say what the value on the lightning will do. When the Chevy and RAM come to market, what will their pricing and specs look like. How will that affect the value of the current lightning? Ford has already said there will be a next gen lightning for 2025. If this makes it to market on time. How will that affect 22/23 model trucks? Honestly if the residual value is of more importance than the utility value of the truck, and you get a truck this year or next, you are going to be best off immediately flipping it as you will most likely make a profit, possibly $15-20k or more if you factor in a tax credit.

 

[fitek]

Also, it's nice the IRS has a list of cars, but what % of these vehicles are not unobtanium and actually meet the price cap?

 

[astricklin]

Also, it's nice the IRS has a list of cars, but what % of these vehicles are not unobtanium and actually meet the price cap?

The list I saw was also missing the VW id4, maybe because they aren't yet delivering the built in Tennessee version . If you get one of the new base model built in Tennessee delivered before the end of the year, that'll get you a $30k id4. Pretty nice in my book. I'd take that over a bolt euv.

 

[cvalue13]

Also, it's nice the IRS has a list of cars, but what % of these vehicles are not unobtanium and actually meet the price cap?

for now, it seems they’re only listing vehicles that meet the now-effective North American assembly rule

As for what meets the price cap, seems the IRS will be meanwhile formulating the interpretations of what does or doesn’t count in “MSRP” for purpose of the cap, which we won’t know for some time

 

[fitek]

for now, it seems they’re only listing vehicles that meet the now-effective North American assembly rule

As for what meets the price cap, seems the IRS will be meanwhile formulating the interpretations of what does or doesn’t count in “MSRP” for purpose of the cap, which we won’t know for some time

Quick scan -- most of these vehicles sell for over the cap. E.g. Lucid Air is on the list... but not only can't you buy a Lucid Air realistically, but it's over the cap.

 

[cvalue13]

E.g. Lucid Air is on the list... but not only can't you buy a Lucid Air realistically, but it's over the cap.

And here relevant, in that I can’t imagine a Lucid Air being delivered anytime before 1/1/23 (when the caps set in).

However, if a Lucid Air order managed to get a “binding” (in the eyes of the IRS) agreement, it could in theory take delivery in 2023 and not be prohibited by the MSRP cap.

Moving into near complete conjecture: I’ll be surprised if anyone with something other than an actual purchase agreement (I.e., not one of these cute “we’re binding!” agreements) make it through. And I’m not thinking the Lucid Air is getting near actual purchase contracts yet.

 

[fitek]

Well, I was trying to find an IONIQ5 or EV6 before the bill was signed (I didn't find one). But I noticed today the dealers have dropped the ADM on the very few Ioniq5s that are out there.

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