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Reserving 2 cars

Reserving 2 cars

Could there be an issue when completing the order or on pick up of a second Model 3 that I reserved for a friend of mine? Since I am a Model S owner now, I received notice I would get an earlier production date on up to 2 Model 3's. Any info would be appreciated.

dsvick | 13. mars 2017

Since you can't transfer the reservation and the person that reserved it has to be the one that buys it I think you'll end up having to buy it and then sell it to your friend. If that's the case then neither of you will be able to claim the tax credit. He'll essentially be buying a used car so may not get as good rate on a loan.

For a more definitive answer though, you should call Tesla.

Carl Thompson | 13. mars 2017

dsvick:
"If that's the case then neither of you will be able to claim the tax credit."

I'm not sure... That's something you'd definitely want to talk to a tax professional about. The relevant line in the tax code regarding the credit says:

- "The vehicles must be acquired for use or lease and not for resale."

However, I'm not sure that a private person buying the car and selling to someone else falls under the definition of "resale" that the IRS uses. That term might be specific to licensed resellers. Also, there don't seem to be any specific time periods in the code. So you could buy it for "use" for let's say one day and then sell it.

However, individual states might have length-of-use wording for their own tax incentives. For example, I'm pretty sure California says you have to intend to use the car for one year to get the state incentive.

And you are both going to end up paying state sales tax. That's just the way it is.

Again you'd definitely want to talk to a tax professional.

Carl

Frank99 | 13. mars 2017

You can't transfer the reservation...check.
To avoid paying sales tax a second time when you sell the car to your friend, the initial title would probably need to be in your friends name...check.

There's a little wiggle room between these two - Will Tesla build the car as your reservation, but title it in your friends name, if you write the check? Certainly there are situations where people ask for their car to be titled in the name of a business or trust, and Tesla will undoubtedly allow that. Perhaps you can create an LLC with the friend, have him write a check to the LLC for the purchase price, have you write a check from the LLC to Tesla, take title in the LLC's name, then dissolve the LLC and retitle it to your friend?

dsvick | 13. mars 2017

@carl - "...there don't seem to be any specific time periods in the code. So you could buy it for "use" for let's say one day and then sell it."

While that's true, I'd hope that knowing full well, in advance, that you weren't going to keep it would be enough. As for what they mean by resale, in the absence of anything to clarify it, I'd just assume the literal definition. But, this is the IRS, so who knows ....

As you said though, the best advice to anyone with questions would be to contact a tax professional who can examine their distinct situation. Crowd sourcing their tax advice is not a good idea.

dsvick | 13. mars 2017

@Frank99 - " Perhaps you can create an LLC with the friend, have him write a check to the LLC for the purchase price, have you write a check from the LLC to Tesla, take title in the LLC's name, then dissolve the LLC and retitle it to your friend?"

And somewhere in there the LLC is sued by someone else who contends that they were moved further down the list because of the actions of the LLC. :)

BERMARI | 13. mars 2017

Thanks for all the input. Sounds like this is an bit more complicated then what I'm willing to deal with! I think he will have to reserve his own and wait.

dd.micsol | 14. mars 2017

Berm-that's the only real way of knowing it will be his and any incentive discount's will be his.
By the time new orders are in-there probably won't be any incentives left.
I'm currently looking to get a model x for 1/2 price. Owner ordered it and is being built right now so they can't
cancel the order. Already have another X they got 2 months ago.
Since they know us really well and we love our model S-we might be sticking an X in the garage too.
Sweet. So I might not need my mdl 3 now. I'll wait it out to see what happens. If I don't need it it will go to my niece.

Carl Thompson | 14. mars 2017

dd.micsol:
"I'm currently looking to get a model x for 1/2 price. Owner ordered it and is being built right now so they can't
cancel the order."

Wow. I wish I had a friend that would sell me a newly built Model X for 1/2 price. If you don't want it let me know!

Carl

SoFlaModel3 | 15. mars 2017

That sounds a bit far fetched.

Who throws away $60k like that when the car could easily be resold for near sticker price.

SUN 2 DRV | 15. mars 2017

You can't transfer the reservation without Tesla's agreement.... and no one yet knows what Tesla is willing to agree to.

dsvick | 15. mars 2017

@SoFlaModel3 - "That sounds a bit far fetched."

Consider the source and add a large grain of salt.

mntlvr23 | 15. mars 2017

the multi-millionaire rips his friend off 50% on a friend-to-friend car sale - every part of the story is necessarily fiction

Badbot | 16. mars 2017

50 pound block on order

SoFlaModel3 | 17. mars 2017

I will take back every challenge I have thrown at dd if he's right and my pre-unveil reserved car arrives before year end.

dd.micsol | 17. mars 2017

@Carl owner is now bedridden. Dying. Already have a S and X-so this is the second X which is no longer needed.
We will probably get the older X if we get one at all.

Carl Thompson | 17. mars 2017

dd.micsol:
"@Carl owner is now bedridden. Dying."

I wish the best for your friend and his family. And if he wishes to give your family a break on a Model X I think that's a pretty awesome parting gesture.

Carl

andy.connor.e | 17. mars 2017

I'd ask Trump

Mapowing | 17. mars 2017

I reserved one on the first day of reveal on March 31, 2016. If I put another $1000 now, does that mean I have to wait for another invitation to configure the second car later in 2018 or will I get to configure both cars at the same time??

Carl Thompson | 17. mars 2017

@Mapowing

I was wondering the same question!

Carl

dsvick | 17. mars 2017

@Mapowing - " If I put another $1000 now, does that mean I have to wait for another invitation to configure the second car later in 2018 or will I get to configure both cars at the same time??"

Your myTesla page says you'll be asked to configure based on the date you reserved so you would have to wait until the configuration time for the second car, like you said probably late 2018.