Higher used Mach-E prices are the "New Normal"

[GoGoGadgetMachE]

The IRS doesn’t believe in jokes. ?

My tax bill suggests something funny is going on... ?

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[SWO]

I would walk away from any deal over MSRP. If everyone would do this then they would quit trying to do it. They are charging Markups only because people are willing to pay it. A item is only worth what someone is willing to pay for it.

Agree in principle, but sadly at this point it makes some financial sense to pay (a little) over MSRP if the alternative is waiting until next year for an order that won't qualify for the full tax credit.

 

[SWO]

So if I had a huge income (e.g. selling a house) this year, I could've bought 10 cars and then sell right away to reduce the tax by $75k

Where do you think all those MachEs on vroom with 1k miles came from?

 

[ChuckA]

I wonder if I buy a car for $50k and then sell it for $50k, then do I owe tax for this profit of $7500 coming from the federal credit?

Even if you made money, when a casual seller sells an asset the gain is not taxable income. It wouldn’t be reported to the IRS. The $7500 was a tax credit, not income.

 

[ripperAZ]

Carvana paid me 6500 bucks more for my GT with 8000 miles on it and 3 months old. I’m getting ready to sell my 21 premium 12 K Miles since it has been buggy for about five grand more than I paid for it. I have another GT and another premium on order hopefully bug free 2022s LOLOLOL. The GT bricked me three times and was eligible for lemon law but I wasn’t giving it back to the dealer when I could make the money on it. Made him get it back to spec and it took 68 days sold it two days later

Jes sayin. Yes I guess I am an evil dealer type conniving dip shit

 

[phil]

I would walk away from any deal over MSRP. If everyone would do this then they would quit trying to do it. They are charging Markups only because people are willing to pay it. A item is only worth what someone is willing to pay for it.

By Jove, you've invented economics!!!

Again.

 

[ChuckA]

So if I had a huge income (e.g. selling a house) this year, I could've bought 10 cars and then sell right away to reduce the tax by $75k

I think you’d be in the business of reselling cars so you wouldn’t be eligible for the credits. It would be a red flag for IRS audit.

 

[ChuckA]

Carvana paid me 6500 bucks more for my GT with 8000 miles on it and 3 months old. I’m getting ready to sell my 21 premium 12 K Miles since it has been buggy for about five grand more than I paid for it. I have another GT and another premium on order hopefully bug free 2022s LOLOLOL. The GT bricked me three times and was eligible for lemon law but I wasn’t giving it back to the dealer when I could make the money on it. Made him get it back to spec and it took 68 days sold it two days later

Jes sayin. Yes I guess I am an evil dealer type conniving dip shit

You are not in the business of selling cars. You are solving your problems the best way you can. It’s smart! I would’ve done the same thing if I had your MME issues.

 

[minjaep]

Not if you bought them with that intent.

I didn't know IRS can read the mind. 10 might be extreme, but you can argue you just tried 4 new different EVs and didn't like them. Anyway I don't have a house yet and don't have much income to claim more than one credit.

But someone I know told me he teamed with one of large dealerships (which has all kinds of EVs from all brands) and by ordering from/selling to them 3 popular EVs to make 30k or more. It helped the dealership to acquire more cars to sell with ADM and he could claim tax credits and some margins. Hope he is okay from IRS.

 

[Pushrods&Capacitors]

I like that we could get about $10K more than we paid for our 4X according to KBB, NADA, Edmunds et al. However, even with crazy MME demand and supply shortages I believe the Fed getting really serious about some quick interest rate hikes by Fall will dent demand as intended. I wouldn’t be surprised if the APR increases buyers will see have a fairly quick effect on prices.

EVs will be less affected because buyers won’t have gas bills to pay but buying a $60-65K car at 5-7% Apr looks different than at 2-4%.

 

[Pushrods&Capacitors]

I didn't know IRS can read the mind. 10 might be extreme, but you can argue you just tried 4 new different EVs and didn't like them. Anyway I don't have a house yet and don't have much income to claim more than one credit.

But someone I know told me he teamed with one of large dealerships (which has all kinds of EVs from all brands) and by ordering from/selling to them 3 popular EVs to make 30k or more. It helped the dealership to acquire more cars to sell with ADM and he could claim tax credits and some margins. Hope he is okay from IRS.

Go for it. Prison is a riot. ????‍

 

[DennisD]

So if I had a huge income (e.g. selling a house) this year, I could've bought 10 cars and then sell right away to reduce the tax by $75k

You would only pay tax on the profit made on your homes if you did this for a business of selling and buying. Example: If you paid 100k for each house (assuming you made no repairs or improvements) and sold them for 200k each, you would only pay on the 100k profit on each house i.e. tax burden on 100k each and depending on the tax bracket you are in, most likely you would owe 25k in Federal taxes on each house. (this is just a wild guess btw)

If you only sold one home (the one you live in) your tax burden would be much less if you purchased another home that you were going to live in down the road i.e. almost zero tax burden. To my understanding, you would not owe a tax on a profit of the home you live in if you reinvest in another home to live in.

To make the 10 cars work (75k), one would need to pay at least 75k in Federal taxes or sell at least 3 homes. (that is w/o factoring in an income on a job you may have besides flipping homes)

If you made a little over $300,000 (assuming you have no itemized deductions), you could make this work without selling a home. If you own a Company and have many deductions, you may need to make closer to 500k +. If you are in that boat, you really wouldn't need to hassle on buying and selling cars. ?

Also, you can't purchase an EV for the tax credit as a "for profit" business so this would all be a mute point anyway.

I realize that you were most likely saying this in "jest", but if you think you have found a loophole, the Gov't. already had that figured out before most normal people do.

 

[Chainspell]

I like that we could get about $10K more than we paid for our 4X according to KBB, NADA, Edmunds et al. However, even with crazy MME demand and supply shortages I believe the Fed getting really serious about some quick interest rate hikes by Fall will dent demand as intended. I wouldn’t be surprised if the APR increases buyers will see have a fairly quick effect on prices.

EVs will be less affected because buyers won’t have gas bills to pay but buying a $60-65K car at 5-7% Apr looks different than at 2-4%.

When in Fall do you think that will happen? I am trading in 4X Premium (for a GTPE!) around September hopefully. I'm kind of counting on the value to be similar by then but timing this might get tricky.

 

[Pushrods&Capacitors]

When in Fall do you think that will happen? I am trading in 4X Premium (for a GTPE!) around September hopefully. I'm kind of counting on the value to be similar by then but timing this might get tricky.

??‍ The Street is already pricing in a 50 basis point increase next month with others coming in June and July too most likely. They aren’t fing around with inflation anymore, that transitory talk has stopped.

But who knows what that really means for crazy used car prices? I imagine they’re not gonna keep climbing though. At least EVs are immune to the gas price issue so they’ll prob be insulated from value drops somewhat.

 

[kgautam28]

Interesting and I would agree I could make a profit selling my EV right now. That said, "Recurrent" is the same website that published the nonsense "study" on winter range loss, so I'm inclined to not believe anything they write.

https://www.recurrentauto.com/research/winter-ev-range-loss

Why is that nonsense?
In my driving style on my awd ext battery mach E I see 200miles range in winter and 270-300 in summer. So the 65% of range in winter does seem right.

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