2023 Mach-E priced over $55K & delivered in 2023 will not qualify for tax credit! Latest IRS ruling says Mach-E is a CAR - not SUV !

[Richard L.]

My NYS registration classifies it as a 4 door sedan. Allstate car insurance as a truck. It’s no wonder my Mach E needs a therapist.

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[DennisD]

The IRS spits truth here. The only reason anyone would call the Mach-E an SUV is because Americans have all lost their god damn minds and most will not purchase a vehicle that isn't an SUV. Even when most of those SUV purchases are just boring tall cars anyway. The Mach E is a fun to drive family station wagon, and that should be considered a good thing.

Argue that the MSRP limit shouldn't be different between vehicle type, but you can't argue what is clearly a car should be an SUV.

That is debatable. The Pontiac Aztec was/is classified as an SUV and the "stance" is quite similar IMO.

 

[Kamuelaflyer]

you can't argue what is clearly a car should be an SUV.

Of course we can. It’s a forum.

Now, whether we should, and whether the comprehensive list, whenever that comes out, uniformly assigns similar vehicles to the same category is another story altogether.

 

[MachKet]

Ford has to be absolutely livid rn, I wouldn't doubt that this gets changed

 

[4sallypat]

It looks like Select and a few Premium (RWD, Short Range) would still qualify, below the $55k limit. I think it's reasonable to expect price cuts on higher trims, but not immediately - Ford will do better to just wait a few months and see how the market develops.

Perhaps Ford would make an early adjustment for SallyPat (above) - cut the MSRP by $1,300 and qualify the car for the tax credit. The government might not like that, and Ford might or might not care.

Nope, my base Premium MME RWD with standard range battery is $56,275 MSRP and no options.

Looking like Select is the only trim that qualifies.

Now I wonder how many MME will be refused in 2023 because of this IRS ruling.

 

[AKgrampy]

I am not clairvoyant but it seems that many people purchased the Mach with fairly high ADM. if Ford is susccessful in eliminating (ha ha ha!) ADM then the tax credit will not impact sales as much. Obviously to those that were making the purchase based on that factor there will be a lost customer but my guess is over time not a lost sale. I have mentioned a few times that personally that I ordered my 22MY thinking I would not qualify for the tax incentive. I believe there remain enough potential customers over the tax credit income limit that sales may not be affected. That being said I may not have been willing to order at today’s price.

 

[phil]

The Mach E is a fun to drive family station wagon, and that should be considered a good thing.

I'd call it a hatchback. A station wagon should have three (or even four) rows of seats.

 

[Polar]

I'd call it a hatchback. A station wagon should have three (or even four) rows of seats.

Four rows?!
What station wagon have I been missing out on?

 

[RickMachE]

Anyone who thinks Ford didn't know this well before it was published is kidding themselves.

The definition of MSRP from the IRS website does not include destination charges, but does include all options added at the plant.

The MSRP for this purpose is the base retail price suggested by the manufacturer, plus the retail price suggested by the manufacturer for each accessory or item of optional equipment physically attached to the vehicle at the time of delivery to the dealer. It does not include destination charges or optional items added by the dealer, or taxes and fees.

https://www.irs.gov/newsroom/topic-...-limitations-for-the-new-clean-vehicle-credit

 

[DennisD]

I am not clairvoyant but it seems that many people purchased the Mach with fairly high ADM. if Ford is susccessful in eliminating (ha ha ha!) ADM then the tax credit will not impact sales as much. Obviously to those that were making the purchase based on that factor there will be a lost customer but my guess is over time not a lost sale. I have mentioned a few times that personally that I ordered my 22MY thinking I would not qualify for the tax incentive. I believe there remain enough potential customers over the tax credit income limit that sales may not be affected. That being said I may not have been willing to order at today’s price.

Just like with anything purchased, the lower the price the more items sold. While this won't affect some, it will affect many IMO.

If you take away the $7,500, that is going to leave a mark if at the end of the day it included around 10% of the total purchase price that is now lost to "classification".

Even people with money look for good or better deals.

Ford will take a hit on this one I am sure.

 

[4sallypat]

I am not clairvoyant but it seems that many people purchased the Mach with fairly high ADM. if Ford is susccessful in eliminating (ha ha ha!) ADM then the tax credit will not impact sales as much. Obviously to those that were making the purchase based on that factor there will be a lost customer but my guess is over time not a lost sale. I have mentioned a few times that personally that I ordered my 22MY thinking I would not qualify for the tax incentive. I believe there remain enough potential customers over the tax credit income limit that sales may not be affected. That being said I may not have been willing to order at today’s price.

My MME purchase is at MSRP only (no ADM) and I expected to take the full $7500 tax credit for '23 MME delivering in Jan 2023.

With this bad news, I may not buy my incoming '23 MME even with the $6K PCO.

Ford better change my window sticker or credit $7500 against the contract.

Or dealers will see a large influx of customer abandoned MME...

 

[RickMachE]

I make the income cutoff and was looking forward to picking up my '23 MME Premium next month with the battery requirement waived.

Now, I won't make the purchase, even with a $6500 PCO ('22->'23).

How ironic: my '23 MME is $1275 over the max MSRP:

Is your destination charge $1,275 or higher? I don't think so, but...

 

[RedOctobrrr]

I wonder how many people are going to take delivery and not realize this until next tax season?

And, how many are going to not go through with the purchase, leaving the dealers with cars people don't want?

Of course some of the buyers, as evidenced by their social media posts, are not going to make the income cutoff anyway...

I was going to refuse delivery and get my deposit back based on income rule. It was take delivery on or before 12/31 or don't take delivery at all, for me.

This $55k rule is gonna catch a lot of people off-guard, me thinks. Imagine filing your taxes not knowing about the CAR classification and IRS says no. $7500 credit -> $0 on your Mach E Premium.

I guess the Select RWD and AWD still make the cut?

 

[trvale]

I'd call it a hatchback. A station wagon should have three (or even four) rows of seats.

Now this is a reasonable argument to have! Not sure I have anything to back this up, but I feel like a hatchback should be a small car, preferably with 2 doors, that can cary an unexpectedly large amount in the hatch with the seats down. I can fit my family of 5 with 2 car seats, plus all the crap that we need (probably need is the wrong word here) and drive 600 miles for a vacation in our Mach E. That sounds more like a family station wagon to me.

 

[DennisD]

Is your destination charge $1,275 or higher? I don't think so, but...

Mine was $1,100 here in Nebraska. I live very close to KC btw. I would guess that many on the Coasts would be at least $1,275?

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