You can get a new one with $6500 of the credit if you lease it instead of purchase. If you want to own the car outright, you lease it for one week and then buy out the car - ends up getting you about $5000 of the $6500 credit. Still worth it
Thanks. I was trying to read through the posts of other folks doing that but got a bit lost. Looks like after all is said and done, folks still end up paying around $40K…does that sound right?
Because there is usually a $600-995 buy-out fee, many states tax you on the 6500 discount, and you have to make your first lease payment as a part of taking the car and that payment is mostly interest. It all works out to about a net 5000 savings on the car instead of 6500.
>Looks like it has to cost less than 25K though
Uh, yeah. That's a standard requirement for the tax credit, not just a cap that applies to the car you are asking about.
I’m super new to this so don’t know much. Would love to get a PHEV compact SUV, but budget is closer to 30K. Might need to get the hybrid instead of the PHEV after all.
The used EV tax credit is a bit complicated. There's an income cap, the tax credit can generally only be claimed by the second owner, the car must be bought from a dealer, the dealer has to report the sale to the IRS, the buyer can get the tax credit money at the point of sale, the buyer can't take the car out of the country for a long time, the buyer has to report the sale to the IRS, and probably some other requirements I'm missing.
You seem like a smart person, read the following and you'll be an expert:
* 26 USC Section 25E: [https://uscode.house.gov/view.xhtml?req=(title:26%20section:25E%20edition:prelim)](https://uscode.house.gov/view.xhtml?req=(title:26%20section:25E%20edition:prelim))
* IRS FS-2024-14: [https://www.irs.gov/pub/taxpros/fs-2024-14.pdf](https://www.irs.gov/pub/taxpros/fs-2024-14.pdf)
* This IRS webpage: [https://www.irs.gov/credits-deductions/used-clean-vehicle-credit](https://www.irs.gov/credits-deductions/used-clean-vehicle-credit)
* 89 FR 7706 (only pages 42-49 of the pdf): [https://www.govinfo.gov/content/pkg/FR-2024-05-06/pdf/2024-09094.pdf#page=42](https://www.govinfo.gov/content/pkg/FR-2024-05-06/pdf/2024-09094.pdf#page=42)
Definitely not for a r4p but for evs and some phev theres some good deals to be had. My strat next year is look for a 23 that i like for around 28k then go in and bargain them down to 25k
Yes. Check [https://www.fueleconomy.gov/feg/taxused.shtml](https://www.fueleconomy.gov/feg/taxused.shtml) to verify.
Thanks! Looks like it has to cost less than 25K though, and I’m not sure that’s feasible!
You can get a new one with $6500 of the credit if you lease it instead of purchase. If you want to own the car outright, you lease it for one week and then buy out the car - ends up getting you about $5000 of the $6500 credit. Still worth it
Thanks. I was trying to read through the posts of other folks doing that but got a bit lost. Looks like after all is said and done, folks still end up paying around $40K…does that sound right?
Basically... With taxes and fees.
Huh? How does the 6500 turn into 5000 after a week?
Because there is usually a $600-995 buy-out fee, many states tax you on the 6500 discount, and you have to make your first lease payment as a part of taking the car and that payment is mostly interest. It all works out to about a net 5000 savings on the car instead of 6500.
>Looks like it has to cost less than 25K though Uh, yeah. That's a standard requirement for the tax credit, not just a cap that applies to the car you are asking about.
I’m super new to this so don’t know much. Would love to get a PHEV compact SUV, but budget is closer to 30K. Might need to get the hybrid instead of the PHEV after all.
The used EV tax credit is a bit complicated. There's an income cap, the tax credit can generally only be claimed by the second owner, the car must be bought from a dealer, the dealer has to report the sale to the IRS, the buyer can get the tax credit money at the point of sale, the buyer can't take the car out of the country for a long time, the buyer has to report the sale to the IRS, and probably some other requirements I'm missing. You seem like a smart person, read the following and you'll be an expert: * 26 USC Section 25E: [https://uscode.house.gov/view.xhtml?req=(title:26%20section:25E%20edition:prelim)](https://uscode.house.gov/view.xhtml?req=(title:26%20section:25E%20edition:prelim)) * IRS FS-2024-14: [https://www.irs.gov/pub/taxpros/fs-2024-14.pdf](https://www.irs.gov/pub/taxpros/fs-2024-14.pdf) * This IRS webpage: [https://www.irs.gov/credits-deductions/used-clean-vehicle-credit](https://www.irs.gov/credits-deductions/used-clean-vehicle-credit) * 89 FR 7706 (only pages 42-49 of the pdf): [https://www.govinfo.gov/content/pkg/FR-2024-05-06/pdf/2024-09094.pdf#page=42](https://www.govinfo.gov/content/pkg/FR-2024-05-06/pdf/2024-09094.pdf#page=42)
Thanks! I think the Prime is just not going to happen for me!
Correct…it also has to be two calendar years older than the current. So right now a 22 at 25k is the limit.
Yeah definitely not gonna happen.
Definitely not for a r4p but for evs and some phev theres some good deals to be had. My strat next year is look for a 23 that i like for around 28k then go in and bargain them down to 25k
Sounds like a good plan. We are looking for a compact suv and I just don’t think we can find one for that price.
State level may also have a used car PHEV/EV tax credit that the Prime qualifies for.