I am trying to sell my 2017 Tesla S 60. I got a sell back offer from Tesla which is about $23K less what I paid for. Not sure how they determined the price but I think it is a rip off. I am thinking of selling it on my own. Any advice where to sell?
I bought Model S in January of 2017 and was thinking to apply incentives to 2017 tax year. Does anyone happen to know if I still qualify for $7,500 incentive if I end up selling my car in the same year?
Oh, I think you are not allowed to keep the $7,500 EV tax credit if you sell the car in less than a year.
Yes u r.
@Rocky, he absolutely gets the $7500 credit, since he placed the vehicle into service. The length of time he owns it before sale would only be an issue if he purchased it with the specific intent to immediately sell it.
In both cases, the subsequent purchaser gets bupkis.
@nata - If you have questions on tax implications I think your best served by consulting with your tax professional. I'm not saying with either of the views you've been told here are right or wrong, but I'd trust technical guidance from here, and tax advice from your tax professional. Just my opinion.
wow...you're going to take a huge hit...why sell?
Do you have 16,000 miles on the car? That would match the previously published formula of $1,000 per month plus $1 per mile.
Like any car from any manufacturer, the day you get it, it will depreciate a lot. The EV tax credit is figured into that too, even if you don't quality or forget to use it. For example:
Buy an EV for $50K, and in California, take the $7500 federal tax credit and $2500 California rebate (so your cost is $40K). Someone else buying the car cannot get either credit or rebate on the used car, so for $40K, it may be the same cost as buying a brand new car. Of course the seller could sell for $40K and have no loss, but the every car depreciates as soon as it is used - a lot the first year and less as time goes on. Anyway, you can use Kelly Blue Book with any car and see what 6 months of depreciation is. It's not for the faint of heart!
Also you don't have to use Tesla to buy the used car - I'd suggest a private party sale for the most value, but it is a hassle. Also you'll need to offer it at a reasonable market price, not what you would like to get for it.
I think many had falsely high expectation of their Tesla resale/trade in value due to early report Tesla hold value better than other EV and luxury car. As Tesla become more common and the constant improvement, it's only normal that resale value will drop especially with M3 being around the corner. Tesla had introduce a new powertrain and rumor of 85 battery on 75, so those two updates already made your Tesla obsolete. If your Tesla have a lot of options those take a worst hit as more options are now standard like power liftgate, glass roof and adaptive light. Lastly, selling CPO isn't Tesla strength so they really discourage you from selling back unless you are upgrading your S or X.
@teslamotorfaq.com - WTF????
Try posting on onlyusedtesla.com
Your are only losing $16,500 on the buy back. As you will receive as much as $7500 in federal tax credit.
@rxlawdude, Right, it's the "for resale" that I was referring to. It's unfortunately really not well defined as to what qualifies as "for resale" in the IRS documentation. If someone sells it in a month, that would probably be considered "for resale", and they would not be allowed the credit. In two months, maybe then too. I have been looking, and I don't see a threshold of how long it has to be kept to get out of that "for resale" time period. I saw an article mention that it's a grey area. I thought I remembered hearing one year, but that may not be right, since I can't find any source citation of that.
@nata In case misery loves company, I'm probably going to sell my 2017 S75D also. Since I already took the initial depreciation hit, I will keep it for a year and then get rid of it. If I lose in depreciation about the same that I would have paid on a lease, I figure that will be about the best I can hope for. Keeping the car longer just prolongs the huge depreciation expense which for me is not worth it. I was a Model3 reservation holder and decided to get the Model S early which was a mistake.
@Rocky_H, the key issue is INTENT. And it's hard to prove (for the IRS) that a vehicle placed into service and driven normally for a month was INTENDED to be resold.
I'm not a tax lawyer, but know the black letter law in this case leaves a lot of room that favors the taxpayer. It's also anomalous that if the IRS did claw back the credit, no one would qualify for the credit on that particular vehicle. That subverts the public policy intent of "placing [an EV] into service."
What is the Price you are Looking for?. and what Miles does it have?.
Tesla Motors Club is a place to check out.
As to CA CARB rebate, the fine print expects you to retain ownership and registration in CA for 30 months from taking ownership. They have interface with CA DMV as to the registration and can require you to repay the rebate to CARB if you are no longer on the registration. They do allow 2 rebates per individual as a limit on that. As you know, CARB rebate funds are dependent on the CA state annual budget on this line item for CARB.
I have 1.5 years with my S75D refresh HW1 to go and found this out when considering upgrading to a HW2 car in December (I'll wait now for full functionality of the new hardware for that).
@fly n lo, actually, if you sell a vehicle for which you received the California rebate, the state "claws back" only a pro-rata amount. In other words, it's:
Clawback = $x * [months in service]/30, where x was the rebate amount originally received by the first owner.
Nata, while you are consulting with your TAX professional you should also discuss how you adjust your taxable income so that you can get the full $7500 credit instead of just a portion.
As the S75 is one of the hottest selling cars, you should also try selling it privately.