My Mach-E ordeal finally solved!

[david33309]

This was a tough decision. I originally bought a VW ID.4 Memorial Day this year, and It was just bought back by VW under the Lemon Law for all the issues. I saw a Mach-E online at a dealership 25 miles from me so I made an appointment. At 2pm that day they confirmed the appointment and at 6:00pm when I arrived, the car had been sold. They were asking for a $5,000 ADM.

The next day I searched again online and found a Mach-E premium with 2,000 miles on it at a dealership 40 miles away. After asking a few questions, I asked if I could put a deposit down to hold it and went to see the car the next day. Needless to say, it's now mine.

A few interesting choices... It's a a Mach-E Premium, but it's Infinite Blue Metallic - a color that was quickly retired. the first year due to supply issues. I figured I'd be OK with the tax credit because I already bought an EV this year, and I still have my free charging with Electrify America. I did buy the extended warranty which is bumper-to-bumper for 8yr/80K from date of purchase, not date of original sale..

One thing that many people don’t understand about the tax credit. For 2021, this is NOT any type of discount off of the sales price. This is NOT going to get you an additional $7,500 tax refund. It simply gives you up to $7,500 less tax reliability.

I did pay a $4,000 ADM and here's why. I wanted a Mach-E, and I no longer have a car. I didn't want to wait 6-7 months to order one, and who knows what's going to happen with supplies and availability. I absolutely LOVE this car. This is the 7th Ford product I've owned, and never really had issues with any of them. I have mixed feelings about the ADM, but truth be told, after getting behind the wheel, the $4K gets pushed gently to the back of my head and I tell myself it's only $66 a month more.

p.s. I charged it to 100% just once to see what the extended range would be. Not bad!

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[RockwallRick]

Congrats!! Did you buy a demo? They sold the one we were test driving after we got it up over 2k miles!

 

[EELinneman]

I did pay a $4,000 ADM and here's why. I wanted a Mach-E, and I no longer have a car. I didn't want to wait 6-7 months to order one, and who knows what's going to happen with supplies and availability. I absolutely LOVE this car. This is the 7th Ford product I've owned, and never really had issues with any of them. I have mixed feelings about the ADM, but truth be told, after getting behind the wheel, the $4K gets pushed gently to the back of my head and I tell myself it's only $66 a month more.

Don't apologize for paying an ADM. You made an informed decision based on your knowledge, your wants/needs and got what you were looking for. Enjoy your new car and let any negativity that comes your way slide off and be happy with your purchase.

It's a very nice color, and you won't see a ton of those on the road, like white Teslas. Well done, now go enjoy your car!

 

[HuntingPudel]

Congratulations on your new MME! Enjoy your drives!

 

[generaltso]

Was this titled as new or used? If new, you should qualify for $15k in tax credits since you bought two cars.

 

[Neil4Real]

Wait, so you didn't get the $7,500 and paid the ADM? You should check with your dealer, I believe if they sell a demo car, there is a form they fill out that makes it so you can still get the $7,500 from Ford for buying the demo car, don't even have to worry about taxes/tax liability, unless your state, like mine here in California, allows them to sell demo cars as new still, so you can just claim the credit yourself.

 

[david33309]

Congrats!! Did you buy a demo? They sold the one we were test driving after we got it up over 2k miles!

The salesperson didn’t know the backstory on the car. Be it wasn’t a demo either. Whatever the story, I’m quite happy with the ending

Was this titled as new or used? If new, you should qualify for $15k in tax credits since you bought two cars.

It was considered used. I am not going to have a $15,000 tax liability this year, so I’m quite content with only taking one deduction.

 

[Caramel]

Congratulations! I'm glad you found a car you like, is available now, and are happy with it! That's what this is all about, right?

 

[david33309]

Wait, so you didn't get the $7,500 and paid the ADM? You should check with your dealer, I believe if they sell a demo car, there is a form they fill out that makes it so you can still get the $7,500 from Ford for buying the demo car, don't even have to worry about taxes/tax liability, unless your state, like mine here in California, allows them to sell demo cars as new still, so you can just claim the credit yourself.

As previously stated, I’m not going to have more than a $7,500 tax liability so I only need the one from the VW. People don’t understand that you don’t get this money back on your taxes… it only decreases your “tax liability”. If you were expecting any type of refund, this “EV tax credit” would effectively be useless.

 

[generaltso]

The salesperson didn’t know the backstory on the car. Be it wasn’t a demo either. Whatever the story, I’m quite happy with the ending

It was considered used. I am not going to have a $15,000 tax liability this year, so I’m quite content with only taking one deduction.

Yeah, if it was titled as used and it wasn’t a demo, there would be no $7500 from Uncle Sam or Ford anyway.

 

[generaltso]

If you were expecting any type of refund, this “EV tax credit” would effectively be useless.

Well, that’s not really true. You could have $15,000 of tax liability and still be expecting a refund if you had $20,000 of withholdings. In this case the tax credit would increase your refund from $5,000 to $12,500.

 

[Neil4Real]

As previously stated, I’m not going to have more than a $7,500 tax liability so I only need the one from the VW. People don’t understand that you don’t get this money back on your taxes… it only decreases your “tax liability”. If you were expecting any type of refund, this “EV tax credit” would effectively be useless.

I mean, that's not really true. I get a refund from slight overpay and kids, but my tax liability is still greater than $7,500 so I will get it back. You can also do an IRA to assist in creating tax liability to get money back. I understand what you're saying, still just sucks, if it doesn't matter to you financially than no harm, no foul!

 

[oadesign]

Don't apologize for paying an ADM. You made an informed decision based on your knowledge, your wants/needs and got what you were looking for. Enjoy your new car and let any negativity that comes your way slide off and be happy with your purchase.

It's a very nice color, and you won't see a ton of those on the road, like white Teslas. Well done, now go enjoy your car!

At least the ADM wasn’t excessive. I’d imagine with the shortage of both new and used cars, dealerships still need to keep the lights on and employees paid.

 

[EELinneman]

As previously stated, I’m not going to have more than a $7,500 tax liability so I only need the one from the VW. People don’t understand that you don’t get this money back on your taxes… it only decreases your “tax liability”. If you were expecting any type of refund, this “EV tax credit” would effectively be useless.

That is not correct. The $7500 is a tax credit, so if you had taxes of $7501, you would get the $7500 tax credit making your net effective tax $1. The same applies to the solar credits if you put in PV and/or batteries in your primary residence. It gets more complex if it is for a business. But, for the majority of us, we will be getting a $7500 tax credit. With that said, if your tax was only $6000, then you will only get a $6000 tax credit. If you had $1,000,000 tax then you will get the $7500 unless the new bill passes and is signed into law at which point there are income caps that will zero out the personal tax credit but not the 200,000 car limit imposed on the manufacturers.

 

[Kevin P]

As others have said, whether or not you expect to get a tax refund is irrelevant. Unless you had less than about $55k taxable income, your overall Federal income tax liability is very likely over $7500. So you may or may not get money back, but it does save you $7500 regardless.
You can only get 1 credit per year for EVs though, so if you already took it for the VW, it wouldn't matter regardless.

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