2024 $7500. "tax rebate"

Sorry; I stand corrected...
Now you only have to deal with a different set of thieves.... Dealerships, looks like they're the only ones that can process the paperwork. Don't know how a dealership would deal with a customer that signs paperwork or asked to sign paperwork, - that they are eligible for those rebates that the customer is in fact NOT eligible for. Sound similar to the lair loans perpetrated during the 2008 mortgage scandal; where everybody claimed they were innocent of wrong-doing. It becomes a he said she said - a smart criminal isn't going to record their crime for the prosecutor. Mind you I wrote, SMART!

Sorry again, just realized those old mortgage brokers just moved into car sales finance

See post #13

 

Thanks for the clarification....

I'm just saying that most dealership finance departments will throw you under the bus, to make a few bucks. Caviet Emptor...

A coworker of mine was telling me, what a great deal he got buying his new truck. Got a great trade-in price for his old truck. I'm a numbers guy and when he gave me the numbers, something didn't add up - literally!!! It was going to be a cash deal, but the finance guy claimed he could save him an additional $500 by financing a portion of the truck - due to the special they were running. My coworker brought in the paperwork, the next day. Someone removed the trade-in credit of the old truck. Basically paid $8K more than he should have. No "cooling-off" period in this state - a contract is a contract...

Here's a variation of the same theme, skip to 4.10 for the scam.

Hope this helps people out there; because my coworker didn't know he got scammed - until I pointed it out.
These people are SLICK.

 

Why I always pay cash with no trade involved. Makes it harder for them to pull any stealership slight of pen. I walk in with a cashiers check for the amount specified and confirmed by email. If they don't want to deal that way, I always find some dealer who does.

 

The last two cars I bought were through internet pricing and negotiating online.

Doggone it, I still had to go through their Financing Department to of course sign all the paperwork and complete the sale.

I hate that - the upsell for add ons and warranties. We didn't take any but just having to set through that irritated me.

Currently I don't know how to get around that. Next time I will research the different internet buying services and see if any of those let you bypass that. We joined Sam's Club, that may be another avenue to explore buying a car.

Car Manufactures have an uncomfortable relationship with Dealers- generally customers are not impressed with Car Dealers - I don't know how they survive.

 

Five out of five dealership salesmen I talked to in early Jan. did not know much about the used car Fed tax credit that started in 2024. It was very helpful to walk in the door with a printed copy of IRS publication 5900 with information for customers about transferring clean vehicle tax credits.

 

When I bought the Spark EV from Carvana and the first Bolt from the Chevy dealer, I had to show both of them that there's no sales tax on EVs in NJ.

 

Reading the fine print, it seems that in order to get the full $7,500 at point of sale you need evidence that you should owe at least that much at the end of the year. But if for some reason you end up not owing that, then you get pardoned and don't have to pay it back.

The apparent catch is if you don't have proof that you'll likely owe that at the end of the year. Say, you've never owed more than $3,000. From what I'm reading they won't give you the full $7,500 at the point of sale.

Hopefully someone can prove me wrong.

 

Owe 3,000 or pay 3,000?

I'm thinking that, outside a certain economic depth band, somebody who does not owe 7500 in taxes either has NO business buying a brand-new car OR they make enough money that they really should not be getting additional kickbacks from the government for buying a new BEV.

 

What are you reading?
This is completely wrong, and I’m only responding in case someone considering a purchase should run across this thread.
There is no tax liability qualifier starting Jan 1, 2024.
Only income and vehicle max amount.
"It no longer matters how much you owe in taxes"

ev-electric-vehicles-tax-credit-car-shopping-tesla-ford-vw-gm

 

In Colorado, there's another $5,000 on top of the $7,500, plus another $2,500, bringing the total incentives up to $15,000 (and there may be more). If the Bolt were still being produced this would put a base Bolt in the $13,000 price range.

The same laws also apply to the $4,000 used EV tax credit.

Yes, I've seen where it no longer matters, but then they are saying you have to also qualify for it, and the qualifications are based on the same regulations as 2023. I just want this to be 100% clear. Maybe someone with a low tax liability has tried and could post their experience.

 

I got a used 2019 Prius Prime at the end of last year. I did some research before buying the car. I haven't filed my 2023 taxes yet, but here's what I found.

• Consult with a tax attorney, accountant, or other professional. I'm neither of these.
• Here's a link to the IRS information - Used Clean Vehicle Credit | Internal Revenue Service
• This is for the $4,000 tax credit on the used. The new vehicle credit probably has some similar information/process
• Some requirements have to be met by the dealer, the buyer, and the car.
  • For the dealer:
    • You must buy the car from an actual dealer.
    • They must report information to you, and the IRS at the time of the sale. (Good luck finding a dealer that even knows about this. I was lucky and found a dealer that was willing to learn.)
  • For the buyer:
    • The tax information I linked to has some limitations on the buyer. Some of these seem to be intended on not making this something you could take if you intended on abusing the tax break, and you were below certain gross income tax limits.
• For the car:
  • There is a website that has a searchable list of qualifying cars (based on the battery capacity I think). There is a link in the IRS webpage I listed above
  • I found the 2017-2021 Prius Prime to be on this list. (Just a guess, but in 2024, the 2022 may also be on the list)
  • The purchase price must not exceed $25,000 (for a used car, including dealer handling, and other packages that they use to increase what you pay for the car. Taxes, and titling fees are not included in this calculation.) Almost all of the Primes I looked at were slightly above this limit, but it gives you a way to talk the dealers down - if they could be. Keep looking if they won't work with you. I proved it could be done.)

• The form you need to file is 8936. This is where you declare the $4,000 tax credits (or a percentage). (There's room for two vehicles on the form, so @PaPrius, you may actually get your way if you want to buy two.)

• The tax credit from 8936 goes on to Schedule 3 line 6f. Following the calculations, the sum of your tax credits are added together and get put on line 20 of the 1040.

• On 1040, this is subtracted from your taxes.

• If, for some reason your total taxes aren't more than $4000, you won't be able to claim the whole amount for the car.

In doing my research, I was pleasantly surprised that this rebate doesn't just reduce your adjusted income. It goes directly toward what you owe in taxes - so you get the full amount from the IRS. (The same is true if you've replaced doors, windows, or added insulation to your house. I replaced some windows a few years ago.)

 

The qualifications are the things that you have to meet in order to get the tax credit. Not owing enough to get the full amount of the credit isn't a qualification; you met those in order to get to that point.

The qualification the buyer has control over is their income level. That's what they have to show with the previous tax return, and the government can recapture the credit in the event their income goes over that limit in the year the car was bought.

 

What I'd like to see is a copy of what is filled out at a dealer for the point-of-sale credit. Is not going over the top limit the only limit on that paper? Most seem to say yes, so I hope that's the case. In any case, if a person gets the $7,500 credit they get to keep it unless they end up making too much.

 

Dang GM, they did it to us again!!!!!
First it was the EV1 and now......

 

Can you link something? I can’t find it

 

Be careful, that is for 2023, and some things have changed for 2024

 

The gist is if the car can get the rebate its point of sale with a potential gotcha if you don’t qualify in the wrong way.
My income is such that I neither could get the full $7500 if I qualified but I also probably don’t qualify as a single individual within a few hundred dollars of the cut off, extremely stupid how the law is only for married couples, someone should be fired for that blunder

Considering most cars can’t get the credit we have traded a limited number of people qualifying to take the credit to a limited number of cars that get the credit at all.
Neither is ideal and as stated the credit is really only for couples

 

The Bolt EUV is supposed to be back in 2025 with the new style battery.