***Thread is OBE***—MMEs now qualify for tax credit—Who is still going through with their 2023 MME purchase despite the new IRS tax credit rules?

[MellowJohnny]

What have you read?

The tax benefit is a 100% direct credit, not a deduction. So long as you can use the full amount of the credit, the benefit is worth the full $7,500, not half.

$7,500 cash back on a $60,000 or $70,000 car is a big deal to many customers. I can understand why some would cancel, unfortunate though it may be.

Apparently the wrong information

Somewhere buried in the 40+ pages was an assertion that the actual benefit was circa $3500-ish. If some can realize the full $7500 that indeed is a different decision.

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[phil]

Apparently the wrong information

Somewhere buried in the 40+ pages was an assertion that the actual benefit was circa $3500-ish. If some can realize the full $7500 that indeed is a different decision.

Well, it can get complicated. Some people don't have enough current tax liability to use the full credit amount. And the new rules about manufacturing locations and battery material content and such could result in a reduction of the credit, though that has not happened yet. But so far, I think the credit for the Mustangs that qualify is still the full $7500, and may remain at the full $7500 if a suitable lease option is available - even for cars over the $55k MSRP limit.

 

[MellowJohnny]

You are comparing an appreciating asset to a depreciating asset?

Not meant as a comparison, more the psychology of making a purchase.

If you'd already decided to buy / invest / make a significant cash outlay for something, a small price increase should not change the economics of the decision. Even losing the full $7500 spread over the life of a hypothetical four year finance term is $156 more a month, $5 a day. That's a latte.

Your milage may vary, but for me if you loved the car at the time you made the decision, $156 more per month is not massive.

Your milage may vary, but if you are in the market for a $60k+ car, $156 more a month is likely not a deal breaker.

 

[sim1]

Even losing the full $7500 spread over the life of a hypothetical four year finance term is $156 more a month, $5 a day. That's a latte.
Your milage may vary, but for me if you loved the car at the time you made the decision, $156 more per month is not massive.

You say a latte and I say a lot.
You say not massive and I say dismissive!
Latte? A lot! Not massive? Dismissive!
Let's call the whole thing off.

Song aside, I get that you acknowledge mileage may vary. But to most, I think the psychology of making a large purchase with a >10% increase in price is significant, not insignificant.

 

[Mmejbx23]

Candidly I picked up a 2022 at the beginning of December as it had everything I ordered on my 23 plus a little extra and it was in my area. I was tired of waiting and figured I’d guarantee the tax credit. That being said, if I hadn’t found the one I did - I was going to wait for my 23 and get it even without the credit.

 

[Ltjuanito]

So I’m new here, and after reading this all… I’m still confused.
I purchased my ‘23 GT on 12/30/22. Does the new IRS ruling mean I no longer get the tax credit regardless of my purchasing it before the year end? If so, definitely a bummer, but this car is still damn amazing after only a week.

 

[sim1]

Does the new IRS ruling mean I no longer get the tax credit regardless of my purchasing it before the year end?

No. The IRS rulings apply to 2023 tax year credits. You're good. Enjoy.

 

[Ltjuanito]

No. The IRS rulings apply to 2023 tax year credits. You're good. Enjoy.

But… according to the following, 2023 Mach-E’s are not on the qualified vehicle listing anymore, which still concerns me:

https://www.irs.gov/credits-deducti...d-clean-vehicles-purchased-in-2022-and-before

 

[MachHunter]

The news hit me RIGHT after I went into production. A week later and I would have used this forum to drop the AWD. That AWD cost me the $2700 for the feature plus $7500. ? Super angry and frustrated. I missed 2023 because slow delivery and getting out from AWF because of fast delivery.

My wife and I talked a lot about it. Why not just ditch it and get a luxury ICE SUV. There are Porsche SUVs with great reliability ratings and amazing drives under 30k miles for what this is costing. Or Tesla has its desperation $7500 offering right now…

…but in the end, I remember test driving Tesla and thinking it was plastic/crap. I remembered I really want that EV quiet and the EV acceleration. I’m 6’4” 250+, and this seat is the only one that felt great on both my butt and my left shoulder.

I had an AWESOME deal with the 22>23 special offer $6k AND the $7500. I feel robbed of that “I got a great deal” feeling that actually makes me love the car more. It sucks. But consider that for $1500 less than the current post-rebate best price, I get the car I want, I get it now, and I get the AWD.

I hate ford for this whole experience and will probably never buy another one. But if I put my Ford feelings aside and look at each car on its merits, taking this car is the right choice for me. Especially considering I could be staring down $1500 in repairs on my extremely old car that from a high repair cost brand.

Am I close to anybody else’s feelings here?

 

[Brian M]

Started looking at EV’s in May 22, Ford, Kia, Hyundai. Tesla, wife has issue with Musk (another thread) and Tesla’s are a dime a dozen and weren’t eligible for rebate. Kia seemed smaller and didn’t really like it. Found a 22 premium AWD ER but was $65 with ADM. would have been $57.5 after rebate but decided in Aug to order to avoid ADM. I have a small ice suv for long trips so went with SR battery. At $4k over the $55k limit we’ve decided to go through with it. Not going through with ev because I want to save the planet but I’m tired of ice engine and emission issues. Tough decision to keep or not but Not letting IRS decide for me.

 

[MachKet]

I just think the mach-e will tank in resale value hard in the next year and without the tax credit to soften that blow it becomes less appealing. Objectively looking at the mach-e it’s just a platform that will not age well at all.

 

[Kevinbringard]

But… according to the following, 2023 Mach-E’s are not on the qualified vehicle listing anymore, which still concerns me:

https://www.irs.gov/credits-deducti...d-clean-vehicles-purchased-in-2022-and-before

Those are for cars purchased *in* 2023. Since you purchased yours in 2022 you qualify. Specifically, the link you included says the following:

#### snip ####

Who Qualifies
You may qualify for a credit up to $7,500 for buying a qualified new car or light truck. The credit is available to individuals and businesses.

To qualify, you must buy the vehicle:

• For your own use, not for resale
• For use primarily in the U.S.

Qualified Vehicles
To qualify, a vehicle must:

• Have an external charging source
• Have a gross vehicle weight rating of less than 14,000 pounds
• Be made by a manufacturer that hasn't sold more than 200,000 EVs in the U.S.

You can find your vehicle's weight on the vehicle's window sticker.

#### snip ####

Since you purchased in 2022 that's the only criteria you have to meet. Model year has nothing to do with it.

 

[Kevinbringard]

To the thread topic: we made our original decision based on the assumption that we wouldn't get any tax credit and then would be happy if we were surprised. So while I'm shaking my head at the IRS being crazy, it won't change our buying decision. We're planning to get ours.

 

[Ltjuanito]

Those are for cars purchased *in* 2023. Since you purchased yours in 2022 you qualify. Specifically, the link you included says the following:

#### snip ####

Who Qualifies
You may qualify for a credit up to $7,500 for buying a qualified new car or light truck. The credit is available to individuals and businesses.

To qualify, you must buy the vehicle:

• For your own use, not for resale
• For use primarily in the U.S.

Qualified Vehicles
To qualify, a vehicle must:

• Have an external charging source
• Have a gross vehicle weight rating of less than 14,000 pounds
• Be made by a manufacturer that hasn't sold more than 200,000 EVs in the U.S.

You can find your vehicle's weight on the vehicle's window sticker.

#### snip ####

Since you purchased in 2022 that's the only criteria you have to meet. Model year has nothing to do with it.

Ok sweet. Fingers crossed this is 100% accurate.
Thank you very much.

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