Bought Demo Car & Dealer Wants me to Assign (Give) it Ford’s $7500 Incentive One Month After Sale with Backdated Signature

Mach1E

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i knew I couldn’t get tax credit on previously titled vehicle when I bought. I didn’t expect them to try to get me to assign 7500 Ford promo to them for a discount I wasn’t given at time of sale.
Hmm, I’m torn on this one then.

Sounds like you bought a car, agreed on a price, knew you didn’t get the tax incentive.

Then, after the sale, dealer finds out they can get $7500 from Ford.

Assuming that the dealer didn’t know this up front……… that money should go to you.

If the dealer and everyone did know about $7500 of “Ford’s money,” then the dealer should get the $$.

Kind of a quandary.
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TheVirtualTim

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It could be shady, or it could be incompetence. There also might be some misunderstanding.

I'm a CPA, and have claimed enough rebates to know how the tax credit works, but even I am confused on why Ford would be crediting this back (as I'd think it's the dealer who can claim the tax credit if they were the titled owner).
I don't believe the dealer can legally claim the tax credit even if they are the first to title the car because the IRS rule says you can't buy the car for the purpose of reselling it. Well... they are a car dealer. EVERY CAR they buy ... is for the "purpose of reselling it". So they'd be committing tax fraud.
 
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Machemich83

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I don't believe the dealer can legally claim the tax credit even if they are the first to title the car because the IRS rule says you can't buy the car for the purpose of reselling it. Well... they are a car dealer. EVERY CAR they buy ... is for the "purpose of reselling it". So they'd be committing tax fraud.
That’s absolutely correct.
 

Woeo

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I would fill out the right side of the form with the program numbers and amounts. Walk it down to the GM of the dealership.

Have a calm discussion where you explain you will not sign on the left so they will not receive any money from Ford (unless they intend to commit fraud by submitting the application without your signature.)

Then ask that they agree to cut you a check for the 7500 and you will sign the form on the right side. As they won’t get any payment without your agreement, they should not care if you get the benefit of the program as Ford intended.

If the GM will not agree you have other options. You can try to go to Ford directly to apprise them of the dealer’s intent to defraud Ford. You might also suggest you split the money 90-10 or some other ratio.
 

blkadr08

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If the car was truly a “demo”. it Is a car that was an Unregistered and unsold wholesale purchase that was authorized for use as a demonstration vehicle which could be drive on the highway for such purpose using special license plates.

you Are the first Registered retail owner and the person intended for the incentive. The fraudulent request for the backdating of the document indicates that the dealer intends to register the car at a prior date and show you as a second purchaser.


If the dealership was the first titled owner of the car, they would qualify for $7500 off of their tax liability from the government. AFAIK, there is no $7500 from Ford. They should not be coming after you for the money.

If you are the first legal owner, that tax credit is yours, and I'd tell the dealer to pound sand.
 


zvez

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RickMachE

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Both rebates should either be credited to the sale or go to the customer.

There is a form signed when purchasing vehicles where buyer agrees that there may be more forms to sign later. I can pull mine if needed.

Get Ford corporate involved.
 

KAustin

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The $7500 is an incentive offered by ford for people buying titled demos, Seems a bit shady if the dealer is NOT going to see you get that money.
I'm pretty sure there are others in the forum that have bought demos at or close to MSRP and never saw this benefit.
 

ChasingCoral

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i knew I couldn’t get tax credit on previously titled vehicle when I bought. I didn’t expect them to try to get me to assign 7500 Ford promo to them for a discount I wasn’t given at time of sale.
I think it was just incompetence when they missed it before. Now they are just trying to get your help in money for them from @Ford Motor Company. As that rebate is supposed to encourage purchase of a vehicle for which you cannot get the tax incentive, you should have then make a new form listing it under “B” and get a check from them.
 

ChasingCoral

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I don't believe the dealer can legally claim the tax credit even if they are the first to title the car because the IRS rule says you can't buy the car for the purpose of reselling it. Well... they are a car dealer. EVERY CAR they buy ... is for the "purpose of reselling it". So they'd be committing tax fraud.
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ChasingCoral

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Here are the rules on that $7500:
Ford Mustang Mach-E Bought Demo Car & Dealer Wants me to Assign (Give) it Ford’s $7500 Incentive One Month After Sale with Backdated Signature FCTP tax credit bonus cash-1

Ford Mustang Mach-E Bought Demo Car & Dealer Wants me to Assign (Give) it Ford’s $7500 Incentive One Month After Sale with Backdated Signature FCTP tax credit bonus cash-2
 

Davedough

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Send them your bill of sale and tell them if they would like to rectify the missing $7500 then you’ll consider covering their illegal mistake
 

codyrobinson

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I have a question relating to this issue.

I'm about to purchase a demo from a dealer in New Mexico. Car has just over 2,000 miles, they are offering to sell to me at MSRP.

I read about the "first on title" to get the tax credit, so I asked the sales guy if the vehicle was titled to dealership, and then I'd be second owner.

He said he asked his manager, and the manager said I'd be first on title and would be eligible for the tax credit.

However, in looking at the post above, New Mexico is one of the states specifically listed.

Any suggestions on how I can make sure I'm good to get the credit? I'll be completing the purchase within the next couple of days. I have the VIN if that helps. I'm not really a "car guy" so I don't know all the tricks.
 

generaltso

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Are you sure the dealer isn't asking you to sign it so they can get the incentive for you? Have they said that they intend to keep the $7500?
 
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Machemich83

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Are you sure the dealer isn't asking you to sign it so they can get the incentive for you? Have they said that they intend to keep the $7500?
If they wanted to give me the money, they’d have filled out the right side of the form. The left side is applicable if they’d already give me the $7500 off in price or issued me a check already. Neither has happened. I’m quite sure of their intentions here.
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