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Advantages to buying new car at end of year or beginning of year?
Posted by: Bo
Date: November 26, 2021 09:43PM
Likely to purchase a new car that should be ready late in December but I can likely push the purchase until January.

Are there particular advantages of one over the other primarily in regards taxes but also anything else that may not be obvious? And yes, it's a BEV and I am in California

FWIW (and it may pertain): I am sole proprietor of my own business and this would be used for both business and personal use. However the business use will be absolutely minimal (500 miles/yr at most) as I work from home.

Any input appreciated!
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Re: Advantages to buying new car at end of year or beginning of year?
Posted by: jdc
Date: November 26, 2021 10:24PM
non that i see, especially in todays market.

what are you looking at... is it out yet?





Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: Advantages to buying new car at end of year or beginning of year?
Posted by: Michael
Date: November 27, 2021 03:59AM
It looks like a tiny difference in terms of taxes. I put information in to the CA DMV tax calculator for 2 hypothetical purchases, one on Dec 15, 2021 and one on Jan 15, 2022 for a 2021 $50,000 electric vehicle sold in Redwood City, CA and found the overall taxes were $5547 for the 2021 sale and $5567 for the 2022 sale.

[www.dmv.ca.gov]

Having said that, I seem to remember that in some states dealers have to pay some sort of tax on cars in stock on Dec 31 each year. If that's the case in CA then a dealer would be motivated to sell a car before the end of the year. The other possibility is that a given dealer might be motivated to sell a car before the end of the year to meet a manufacturer quota or reward level for selling a certain number of cars. Of course, in these times it looks like dealers can pretty much sell everything they can get their hands on so any motivation to sell by the end of the year wouldn't be as likely to have a financial benefit to you.
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Re: Advantages to buying new car at end of year or beginning of year?
Posted by: Ombligo
Date: November 27, 2021 05:42AM
It may be worth holding off a bit longer to see what shakes out with the Build back better bill in congress. The bill as written now raises the EV credit to $12,500.

Here's how the proposed changes shake out and keep in mind, they may change yet. The base amount remains $4,000, as it is today, with another $3,500 available if the EV's battery pack includes at least 40 kilowatt-hours of capacity. In the case of plug-in hybrids, the gas tank cannot exceed 2.5 gallons. Now comes the $5,000 boost. There another $4,500 in the tax credit if an automaker makes the EV in the US with a union workforce. Another $500 comes into play for automakers using a US-made battery, for a maximum of $12,500 available.

Currently, the only car that would qualify for the full amount is the Chevy Bolt. teslas misses out as those are assembled in Mexico (my bad, I was thinking Mustang)



“No persons are more frequently wrong, than those who will not admit they are wrong.” -- François de La Rochefoucauld

"Those who cannot accept the past are condemned to revise it." -- Geo. Mathias



Edited 1 time(s). Last edit at 11/27/2021 09:15AM by Ombligo.
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Re: Advantages to buying new car at end of year or beginning of year?
Posted by: Carnos Jax
Date: November 27, 2021 05:55AM
Quote
Ombligo
teslas misses out as those are assembled in Mexico

Huh?
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Re: Advantages to buying new car at end of year or beginning of year?
Posted by: Will Collier
Date: November 27, 2021 06:56AM
Generally sales are lower in December and you can get a better deal. This year I expect all bets are off though.
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Re: Advantages to buying new car at end of year or beginning of year?
Posted by: Speedy
Date: November 27, 2021 07:02AM
You cannot carry any unused $7500 fed tax credit forward to another year, it must be used in the year of purchase. So, if your income this year doesn’t allow the use of the full credit but you think your income will the next year, wait.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: Advantages to buying new car at end of year or beginning of year?
Posted by: MartyStickle
Date: November 27, 2021 07:06AM
Our Tesla model Y that we're picking up Wednesday was manufactured in Fremont CA. I'm unaware of any Teslas that are made in Mexico. The Build Back Better plan will not apply fully to Teslas because of the non-union nature of Tesla.



Asheville, NC Area
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Re: Advantages to buying new car at end of year or beginning of year?
Posted by: qdog2
Date: November 27, 2021 07:33AM
The Ford Mustang Mach E is made in Mexico. No Tesla is made in Mexico. Teslas are currently made in the USA and China. The Germany factory is on schedule to open in early 2022.



Portsmouth, Va
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Re: Advantages to buying new car at end of year or beginning of year?
Posted by: Carnos Jax
Date: November 27, 2021 08:31PM
What’s more, all Teslas sold in the United States are manufactured in the United States, and I think (but I’m not sure) they use mostly domestically produced components (in contrast to most other makes and models of cars sold in the U.S.).
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Re: Advantages to buying new car at end of year or beginning of year?
Posted by: sekker
Date: November 28, 2021 11:21AM
If you are planning a Tesla purchase, I think you are obligate for 2022. Takes awhile to get your car made for you due to the backlog!

I personally would not rush any car purchase at this time unless you have to. The first wave of non-Tesla EVs are coming around, but slowed by supply chain issues and other disruptions. And the Bolt and Ford EVs are getting over their growing pains.

I’m a Volt and Tesla household. I think the Mustang EV is a sharp-looking SUV. And the Bolt has a lot of promise as it gets to learn from the long Volt success while having years of being in the market as well.

The Chevy, Ford and even the VW models all currently suffer from a poor nationwide charging network however.
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Re: Advantages to buying new car at end of year or beginning of year?
Posted by: Bo
Date: November 28, 2021 03:23PM
It is in fact a Model 3 (base level). I ordered it a few months back (before recent price bumps) so delivery is set for Dec. 2nd-30th which is why I asked the original question. If it's late in the month I'm sure I could delay taking delivery until first week of January if there are any advantages

Demand is so high for them that I was originally looking for a used one but models as far back as 2018 are going at almost current new retail so figured a new one makes mores sense.

Thanks for all of the input! The Build Back Better information is interesting but looks like it doesn't/won't apply to Teslas. Also the $7500 federal tax credit no longer in play for Tesla

Quote
sekker
If you are planning a Tesla purchase, I think you are obligate for 2022. Takes awhile to get your car made for you due to the backlog!
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Re: Advantages to buying new car at end of year or beginning of year?
Posted by: Filliam H. Muffman
Date: November 29, 2021 11:15AM
Quote
Ombligo
It may be worth holding off a bit longer to see what shakes out with the Build back better bill in congress. The bill as written now raises the EV credit to $12,500.

Here's how the proposed changes shake out and keep in mind, they may change yet. The base amount remains $4,000, as it is today, with another $3,500 available if the EV's battery pack includes at least 40 kilowatt-hours of capacity. In the case of plug-in hybrids, the gas tank cannot exceed 2.5 gallons. Now comes the $5,000 boost. There another $4,500 in the tax credit if an automaker makes the EV in the US with a union workforce. Another $500 comes into play for automakers using a US-made battery, for a maximum of $12,500 available.

Currently, the only car that would qualify for the full amount is the Chevy Bolt. teslas misses out as those are assembled in Mexico (my bad, I was thinking Mustang)

I just read that all GM electric vehicles no longer qualify for the $7,500 Federal tax credit.
"General Motors, like Tesla, has already reached the 200,000 buyer milestone for eligible EVs, any new Chevy Bolt purchased after 3/31/2021 doesn’t qualify for the federal EV tax credit."
That implies the maximum credit currently available is $5,000.



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