Buying a demo car. Titled as new, still get tax credit?

[WildBillTV]

Hello,

As the title says I am buying a demo/loaner car from a dealership this weekend. They are holding the car for me. They said it is being titled as new and that I should get the tax credit still, but I wanted to check with people on here. I've seen information saying I will get the tax credit but others saying I won't. Does anyone have any insight?

Thanks,
Bill

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[timbop]

It is sold as new with the appropriate title, so yes you will get the tax credit.

 

[WildBillTV]

It is sold as new with the appropriate title, so yes you will get the tax credit.

Awesome, thank you! Just didn't want them to try and claim the VIN come tax time or something. I honestly am not even sure how the tax credit works, but I can work that out with my accountant. Just needed to know that I am still eligible!

 

[phidauex]

You should be good, a few states require dealers to title their demos, meaning you'd be the second owner. However, in most states the dealer laws allow dealers to keep their demos untitled, meaning the eventual owner is still the "first owner", even if the car has 4000 miles.

You need surprisingly little in the way of documentation to claim the credit, your tax professional shouldn't have any issue with it, and since you are getting a new title you should be in the clear.

 

[hybrid2bev]

Hello,

As the title says I am buying a demo/loaner car from a dealership this weekend. They are holding the car for me. They said it is being titled as new and that I should get the tax credit still, but I wanted to check with people on here. I've seen information saying I will get the tax credit but others saying I won't. Does anyone have any insight?

Thanks,
Bill

As long as you're not doing an RCL (red carpet lease) you'll be fine. If you finance, Ford Options or pay cash and it's titled as new then you're all set.

Even if it was titled as used, Ford has a rebate program to compensate for the tax credit on FCTP units.

 

[WildBillTV]

You should be good, a few states require dealers to title their demos, meaning you'd be the second owner. However, in most states the dealer laws allow dealers to keep their demos untitled, meaning the eventual owner is still the "first owner", even if the car has 4000 miles.

You need surprisingly little in the way of documentation to claim the credit, your tax professional shouldn't have any issue with it, and since you are getting a new title you should be in the clear.

Awesome, thank you for your input!

As long as you're not doing an RCL (red carpet lease) you'll be fine. If you finance, Ford Options or pay cash and it's titled as new then you're all set.

Even if it was titled as used, Ford has a rebate program to compensate for the tax credit on FCTP units.

Thank you for the help!!

 

[RickMachE]

Awesome, thank you! Just didn't want them to try and claim the VIN come tax time or something. I honestly am not even sure how the tax credit works, but I can work that out with my accountant. Just needed to know that I am still eligible!

As long as you owe tax of $7,500, or more, then you'll be able to use the credit. People with low incomes sometimes find they've hosed themselves because their taxes owed are below $7,500.

 

[WildBillTV]

As long as you owe tax of $7,500, or more, then you'll be able to use the credit. People with low incomes sometimes find they've hosed themselves because their taxes owed are below $7,500.

I will definitely owe more than $7,500 so I should be good!

 

[OON7]

As long as you're not doing an RCL (red carpet lease) you'll be fine. If you finance, Ford Options or pay cash and it's titled as new then you're all set.

Even if it was titled as used, Ford has a rebate program to compensate for the tax credit on FCTP units.

Any documentation or links to point to that rebate? I'm about to buy a FCTP Mach-E and the Carfax shows the dealer took the title and I think I'm going to need to lead them to the water on this. Thanks!!

From Carfax:
Dealer took title of this vehicle while it was in inventory
Title or registration issued

Edit: Nevermind found it here! https://www.macheforum.com/site/threads/any-insight-into-fctp-sales.6559/

 

[ARK]

Hello,

As the title says I am buying a demo/loaner car from a dealership this weekend. They are holding the car for me. They said it is being titled as new and that I should get the tax credit still, but I wanted to check with people on here. I've seen information saying I will get the tax credit but others saying I won't. Does anyone have any insight?

Thanks,
Bill

I would just make sure on the paperwork it is showing as a new vehicle, to the extent it does appear on your dealership's/state's paperwork.

 

[MachEnation]

I bought a dealer demo *show* car (a PHEV) that qualified for the 7500 a few years ago. Paperwork showed new and had no problem claiming the credit.

 

[TruWrecks]

The Tax Credit is valid as long as the car was never owned by another private person or company. A demo car is still considered a new car as far as the sale goes, but at a discount for the mileage.

 

[ChuckA]

As long as you owe tax of $7,500, or more, then you'll be able to use the credit. People with low incomes sometimes find they've hosed themselves because their taxes owed are below $7,500.

True, but paying $0 federal income tax is still a good thing. People with low incomes may find it difficult to pay big monthly payments or will surrender larger down payments. I prefer to finance it all if the loan will get approved. Ford Options is a no brainer.

 

[Diego]

I was lucky enough to buy my mach e as a demo with 4k miles in it. That had registered it already, but then they took the 7.5k right off the price. The car was flawless so I got my car for 7.5 off list (AWD, ex premium) for a great price. They also gave me almost what I paid for my Wrangler 2.5 years and 40,000 miles later. Insane used car market right now.

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