***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?

[Kevinbringard]

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

You'e welcome! I'm not a tax professional, but there's a lot of threads about this. One such example: https://www.macheforum.com/site/threads/tax-credit-for-23-model-purchased-in-22.24905/

Folks seem pretty confident

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[RodMachE]

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

It is 100% accurate ….

 

[RodMachE]

Thanks!

I'm definitely going with an EV, most likely the MME CR1. I installed solar panels last year (and a heat pump to replace a NG furnace) so this is a continuation of my overall move towards electrification. I'll get some tax rebate this year anyway, so another would be great but it isn't a must have.

I plan to trade in my ICE mustang convertible for the MME. But if I go with the ID4 it will replace my ICE pickup truck. The ID4 is trailer rated so I would go without a pickup for the first time in 30 years. (This is why I don't really argue the idea that the MME is a car and not an SUV.) But I think I'm more likely to wait until the Lightning (or another EV pickup) becomes more available.

Cool name…… be careful with integrals…

 

[Scott Libre]

After the info was released, I decided to let my unscheduled 2023 Premium AWD go. The MSRP was just under $60k.

The dealer I ordered it from had a 2022, same package on the lot. Worked out a deal $1500 over MSRP, which left the price under the $55k rebate cutoff. Picking it up soon.

 

[J40MME]

Bailing on my order after 10 months of elation, frustration, then elation, then frustration, then elation again, then frustration. Made a sensible decision and bought a hybrid suv that my wife isn’t afraid to drive and my kids and their gear will fit comfortably in… man I hate being sensible.

 

[MachHunter]

Nice catch on the ‘22. If the cash offer was taken into the MSRP I would be fine. . I would have taken your deal in a heartbeat.

 

[MachEMaster]

I'm not in the U.S. , but we did receive a Federal and Provincial rebate here in Canada. To me it appears Ford increased their MSRP for '23 to get the rebate money for themselves, and now the only trim that may still qualify here, is a base Select. It's a Lose, Lose for the consumer.

 

[Gogetalee]

I gave up my MME on 12/31/22. The dealer was being shady and the lease / Ford Options interest rates were horrible. I didn't really need the vehicle, so I'm not going to pay crazy interest rates just because.

On top of that, the dealership I was working with became condescending and unprofessional the second I didn't plop out 73K in cash on the spot. The way I see it there are simply more interesting vehicles out there at better price points and with better lease options..... And more on the way.

Not to mention, as the year progresses there will likely be a fire sale on used car lots and manufacturers will have to make brand new cars more attractive if they want to keep sales up.

Anyways....it pays to be patient when getting new toys.

 

[Tawna]

I'm just gonna throw this out there but...if you want it, you want it. Who cares about IRS shit. It's a pricey car. That is all.

 

[yngwenli]

One thing to consider is used EV values have been dropping quite a bit recently and there maybe less of a rush now to get a car unlike in 2021-2022 so delaying might not be as bad if someone isn't in a rush or needs a car to let it play out more.

Since not getting the $7.5k is the worst possible outcome, I'd probably hold off personally if this affected me. Tesla MY prices may go down as well if someone was ok with that option (they cut prices in pretty much every other market I've read (China/EU/Japan/$7.5k off last Dec in USA)).

You sorta have nothing to lose waiting and $7.5k is a lot of $$ to me. It's also not a stock (which I generally agree with on investments), but cars are generally not an investment.

If being $1 over $55k makes someone lose $7.5k, and with how much people hate ADM here, I'd say do everything in your power to get it (assuming one qualifies).

Ford may also find ways to remove things (like BlueCruise on Premiums or higher trims) which can be added later, etc...

 

[MachKet]

One thing to consider is used EV values have been dropping quite a bit recently and there maybe less of a rush now to get a car unlike in 2021-2022 so delaying might not be as bad if someone isn't in a rush or needs a car to let it play out more.

Since not getting the $7.5k is the worst possible outcome, I'd probably hold off personally if this affected me. Tesla MY prices may go down as well if someone was ok with that option (they cut prices in pretty much every other market I've read (China/EU/Japan/$7.5k off last Dec in USA)).

You sorta have nothing to lose waiting and $7.5k is a lot of $$ to me. It's also not a stock (which I generally agree with on investments), but cars are generally not an investment.

If being $1 over $55k makes someone lose $7.5k, and with how much people hate ADM here, I'd say do everything in your power to get it (assuming one qualifies).

Ford may also find ways to remove things (like BlueCruise on Premiums or higher trims) which can be added later, etc...

Nicely said, anyone taking a '23 with no tax credit is buying at peak and should factor in the inevitable plummet of value especially if planning to keep it short term

 

[HeyMomTheMeatloaf]

Waiting isn’t a bad idea. GM is releasing two vehicles tailor made for the IRA; Equinox and Blazer EV.

If they can deliver on just 2/3rd of their promises, they will knock it out of the park, and put extreme pressure on every existing EV.

Equinox is supposed to have 300mi range, and cost $30k, Blazer is $40k. The styling is good and consumers will have two serious options at price points that consumers have never seen before.

Tesla, Rivian, Lucid and others are going to find out just how much consumer demand there really is for $110k SUV’s and 130k sedans.
Mach-E exists in a category that could be absolutely annihilated by new EV models coming in closer to 30k.

There are few options to the Mach-E with the utility, performance and price. But all that changes with these new EV’s.
Tesla is in the same boat as Ford with the IRA bill making many of their models not eligible.

Before 2023 is over; Both the Model Y and Mach-E will be priced below IRA limits. Both of these models will have Equinox/Blazer competition nipping at their heals. Dealers are extracting as much cash as they can from impatient buyers, because they know what is coming.


There are like two elephants in the room. The IRA qualifications and the new EV models. Inflation is going down, supply chain issues are subsiding, supply of materials is secure; Ford is going to have to make the Mach-E more competitively priced as 2023 goes on

 

[llinthicum1]

The real problem isn't the tax credit or lack there of, it's the fact that EV's cost too much. It's up to the manufacturers to figure out how cost will be reduced and make more affordable to consumers.

 

[Triggerhappy007]

Does the tax credit apply regardless of income level? Someone at work asked me this and I wasn't sure on the answer. I assumed that any tax credit would only apply for people making below a certain income level, like other deductions such as property tax or charitable donations.

To get the full tax credit, you need at least $7500 in tax liability (or less later when it is decreased due to battery restrictions). There is an income limit of $150k single or $300k married that started this year.

 

[GreaseMonkey]

I started out life with a job in a brokerage firm right out of school. I was lucky enough to work with a very experience broker, who had nuggets of wisdom to pass on the more I worked with her. One that stuck with me was something she'd say to clients who wanted to buy Stock X at say $50, but had now gone up to $51. She'd say "If you liked it at $50, you like it at $51" assuming you're in it for the long haul.

So I have the same advice - the car is fantastic, and I look for opportunities every day to take it out and drive it. I absolutely love it.

So, with what I've read about the actual "in your pocket" benefit of the $7500 tax credit being roughly half that I'd say the same thing - if you liked at $63k (or whatever it is...), you'll still like it effectively $66k, or whatever it happens to be.

I would absolutely not give up driving this car for essentially $3500. I have a '22, but if I was in your position, I'd keep it. It's an amazing car.

Hope it helps, just another data point for you ultimately to decide for yourself.

Not to be judgmental (I’ve made far worse decisions when I was younger), but this is not equivalent to long-term investing, much closer to taking a second mortgage on your house in a declining market to short-sell Blockbuster.

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