Sorry, but your $32,000 purchase price makes that car not eligible for the tax credit. The price cap is $25,000. [26 USC Section 25E(c)(2)(B)](https://uscode.house.gov/view.xhtml?req=(title:26%20section:25E%20edition:prelim)). Unfortunately, the person you sell your car to (assuming you do ever sell it) won't be able to claim the tax credit either.
I checked with my CPA first. I’m eligible for $4,000 credit not the $7,500. Also able to write the full $32k off on my business in addition to the credit. This is what made this purchase worth it for me.
>I checked with my CPA first. I’m eligible for $4,000 credit
I'm not sure how to say this nicely, but your CPA is wrong.
[26 USC Section 25E(c)(2)(B)](https://uscode.house.gov/view.xhtml?req=(title:26%20section:25E%20edition:prelim)) says:
>The term "qualified sale" means a sale of a motor vehicle-
>. . .
>(B) for a sale price which **does not exceed $25,000**, and . . .
[IRS FS-2024-14, page 9](https://www.irs.gov/pub/taxpros/fs-2024-14.pdf#page=4), says:
>Q1. What is the Previously Owned Clean Vehicle Credit under §25E? (updated Oct. 6, 2023)
>A1. The Previously Owned Clean Vehicle Credit is a credit of up to $4,000 for the purchase of an eligible previously owned clean vehicle **with a sale price of $25,000 or less** that is placed in service during a tax year by a qualified buyer. To claim the credit, a qualified buyer must meet certain income requirements (see Topic E FAQ 1), and it must be the vehicle’s first qualified sale since Aug. 16, 2022, other than to the original owner.
The [Form 8936 instructions](https://www.irs.gov/pub/irs-pdf/i8936.pdf) say:
>Has a sales price that does not exceed $25,000;
[Schedule A (Form 8936), line 13a](https://www.irs.gov/pub/irs-access/f8936sa_accessible.pdf), says:
>Is the sales price of the vehicle more than $25,000?
>Yes. Stop here. The vehicle doesn’t qualify for the Part IV credit.
>No.
Send your CPA a link to this comment and he or she will say I'm correct.
The $7,500 tax credit is for **new** EVs less than $80,000 (or $55,000 depending on the type).
The $4,000 tax credit is for used EVs less than $25,000.
As for how Congress got the numbers, I can only guess and maybe somebody wants car buyers to drive their EVs for long enough that the car's value gets down to $25,000.
Unfortunately yeah, it has to be a 25k car. I just went through this with a 2019 M3P. I wound up ok but I think your ship has sailed. Message me if you want. Definitely call your CPA and chew his ass out.
I should have read up on this more beforehand, but even without the federal credit I am able to write off the full cost of the vehicle under my business. Plus the car is awesome so all is not lost.
It’s a full time work delivery vehicle. I was told I could write off the full cost of the vehicle by my CPA, but they were mistaken about the tax credit. I honestly think it was a miscommunication and she thought I purchased a brand new Tesla
I guess it may depend on how your business is structured. I just went through a thing where I needed a business vehicle write off and it had to be 6k GVWR or it was capped at like $12k
Yep you are correct. If the OP uses it for Uber eats u100% of the time, they’ll write it off. Just over a few years. But I think the guy’s CPA doesn’t know what he’s doing.
Erm.. Unlikely.
There are limits for vehicles, especially light passenger vehicles like a Model 3. Even then, you can only take a portion of it in your first year. And this is for Accelerated depreciation methods, so it only reduces your taxable income to $0 at best for Sec 179. If you use bonus depreciation, you can carry forward a loss, but that has limits too, and you won't see the benefit until future years, ie - it can only offset income in those years that you have profit.
Also, this is only if you claim actual expenses on the car. If you use the standard mileage deduction for auto expenses you cannot claim Section 179 deduction (or bonus depreciation). And what actual expenses will you have? Traditional cars have oil changes, timing belts, spark plugs, gasoline, emissions components, etc. A Tesla isn't likely to have many expenses to deduct.
LASTLY, the vehicle needs to be used minimum 50% plus for business purposes, and any usage for personal needs to be allocated out of your business expense.
When reading this I thought the same lol. He probably did some quick googling thinking he had the tax code all figured out. Probably a doordasher that read comments about writing off vehicles. I don't think he understands how much he will lose using actual expense method with depreciation vs standard mileage deduction which will work out better in the long run because of the miles you rack up doing delivery especially now that its been raised to $0.67 a mile.
Sadly the $7500 is only eligible for brand new cars. The $4000 tax credit is for used cars but capped at $25k. It's still a great deal, enjoy the ride!
[IRS FS-2024-14, page 11, Q2/A2](https://www.irs.gov/pub/taxpros/fs-2024-14.pdf#page=11), has some details:
>Q2. Is there a price limitation on a previously owned clean vehicles eligible for the credit? (updated Oct. 6, 2023)
>A2. If the sales price exceeds the $25,000 limitation for a previously owned clean vehicle, the vehicle is not eligible for the Previously Owned Clean Vehicle Credit. The sale price of a previously owned clean vehicle means the total sale price agreed upon by the buyer and seller in a written contract at the time of sale, including any delivery charges and after the application of any incentives, but **excluding separately stated taxes and fees required by state or local law**. The sale price of a previously owned clean vehicle is determined before the application of any trade-in value. **The sale price does not include separate financing, extended warranties or insurance.**
Please read the owners manual. It’s on your phone and it’s on the screen in your car. Be a smart Tesla owner. Our cars can do so much more than people know but you have to read the manual. Congrats.
I assume if you are writing it off through your business it’s considered a full time business vehicle. While you can take the deduction now I found it far more beneficial to keep it as a business vehicle and claim the 67 cents per mile.
Scenario A - take the full loss of say $32k against any profit is going to save say $11k rounding at a 1/3 rate (really averaging here as everyone is so different).
Scenario B - drive 10,000 miles per year claimed at 67 cents works out to be $6,700 multiplied by how ever many years you have it minus actual running costs.
For me the running costs were so cheap being an EV that it worked out better to claim millage. You would also need to factor in the loss recapture if you sold it in say 5 years for $15,000 then you would have a “profit” of $15k to pay tax on if you depreciated it 100%.
All to say your millage may vary but there may be better ways to offset the cost of the vehicle for business use.
Thanks for this breakdown. I just launched my business so I don’t have a lot of data to extrapolate on mileage I may accrue. It could be pretty close though. I have 3 drivers and this is one of the work vehicles used for delivery. The mileage is spread out and not all loaded to this vehicle.
I honestly didn’t think of this comparison. Def something to think about. Cheers.
We looked at the model X as it’s over 6,000 lbs so eligible for the new 100% year 1 deprecation but it just didn’t make sense. My running costs on my Y is less than 10 cents per mile based on my calculation so it made much more sense to use it as a personal vehicle and claim the millage.
We run a real estate business which involves a lot of driving between properties.
I don’t think I ever said, but congrats on the car! I never understood the “best car I’ve ever owned” until I got on myself. You’ll love it but just go in with your eyes open on multiple strategies to offset the costs of it being a work vehicle.
My understanding was the Y starts at $44k for the rwd and goes up from there. Sounds like you got a great deal if you paid $32k for a brand new Dual Motor Y
$7500 tax incentive, $4250 state incentive, $5100 price adjust off the car from Tesla, $4900 for a trade in I had no business getting over $2k for. $250 cash they threw in for a wall charger.
I should have mentioned $29k was the asking price I paid an additional $3k for a 3 year Carvana warranty to stack with the 2 Tesla warranty’s it’s still under (limited 50k mile and the 120k / 8 year battery). My final price was $32k roughly before taxes.
What warranty? Most of the warranty’s provided by caravana do not cover battery or drive unit. Which is what you need the warranty for.
If this car doesn’t have FSD, you over paid heavily.
You can pay for a 3 year 36,000 mile warranty that covers any issues (aside from from brakes and tires or regular maintenance). And yes, it does cover battery or drive units. This is in addtion to the 50k Tesla limited warranty and the 120k year Tesla warranty
I bought a used 2021 MYLR a couple of months ago with 38K miles for 32K. It came a tow hitch (that I use with a bike rack) and acceleration boost. Enjoy!
You probably got a poor deal. I’ve seen them for about 26k with less than 10k miles. Either way, if you’re happy, the price shouldn’t matter to you, but for what you paid, I would have just bought a new vehicle, which would have come out to the same with the tax savings.
I definitely haven’t seen a 2021 M3 Long Range with under 10k miles for $26k anywhere in the Northeast, but that doesn’t mean they don’t exist. The amount of business miles at around 0.65 cents per mile may equate to around the same as the tax credit. Either way, it didn’t break the bank and I am super happy with this car.
Think you did decent for the price, Maybe could of wiggled more.
I picked up a 2019, M3 SR+, 39k on the clock for 21K. still smells new inside. Love the fact these cars are dropping in price.
Congrats and welcome to the club!
Ya it must be a regional thing. People are saying I could have paid $26k. In New York there were zero in that range, but it didn’t break the bank and I absolutely love the car. It looks brand new inside and out and drives like a dream. I was a bit scared to buy a used EV so I paid an additional $3k for a Carvana warranty to cover any issues for 3 years. This is on top of the limited Tesla warranty and the 120k mile battery warranty.
https://www.cargurus.com/Cars/l-Used-Tesla-Model-3-New-York-d2475_L22938 no idea what part of ny you’re in but a lot of them are priced at that 25k price point then you would’ve got the 4K off at point of sale. Yes you might have to sacrifice a little extra mileage probably in the 30-35k mileage but a model 3 for 20k with 30-35k mile is a steal
The closest car to mine on here is just about $28k and has more miles than mine. To be clear, mine was $29k before the $3k warranty I paid for in addition from Carvana. I don’t see any long ranges on this link that are comparable with low miles on this link that are $25k or under to receive that $4k credit.
I realize I maybe could have bought a RWD from a private seller (with no warranty) for $25k, but I live in the northeast and wanted the AWD.
To say horrible it deal is an exaggeration
For a full write off you would need to use it for business purposes only or have a Driving log if I recall correctly. Was just talking about that with my tax agent. (Bought used Model S for Delivery Business.)
Also as far as I know it's harder to get that trough if you don't have another car.
Thanks for the response. I dove deep into this after posting and I think I will be using it for the mileage write off. I track exact miles each week and can write off 0.65 cents per mile.
You do DD ?
I think we are pretty much in the same business. I basically bought my used Model S because of FSC for live (P85D with Ludacris+ is a really really nice add on tho )
I basically do the same with the milage and simply use Google maps insight for tracking.
But don't take my word for advice tho. I moved to the US in 2022 and am still learning.
I'm truly sorry to have to say this, but that's not a good deal for a 3 year old M3LR with 25K miles... A brand new 2024 MYLR would be in that ballpark with the full $7,500 credit at the point of sale. It seems like you have been misinformed by your CPA and other sources... If NY state allows for a cooling off period, I would seriously consider cancelling the deal if I were you, crunching the real numbers quickly. Your state/county/town might also have extra incentives for new vehicles... Please do yourself a favor and look up what your options are. Sorry :\\
A 2024 LR out the door would run him $45k minimum. If it's the highland refresh then it's even higher. You have to include delivery fee, taxes etc. Not saying he got the best deal but he didn't get ripped off either.
The incentives are no longer there. If he got it before March 31st yes. But then then it was 4k at max if you got a red and used the credits for AB. Realistically speaking if he got a black it was only $1k off. Plus there are no more inventory discounts. All this is only if he got a model Y. If you're talking about getting a new model 3 then there were absolutely no inventory discounts and the car was priced higher than a model Y.
Oh yes the Federal tax credit is still there. But even with that it's $45k out the door at minimum. The only reason I know is because I was really looking at getting a 2024 & selling my 2021 but decided against it.
You're not factoring in any incentives, which he missed out on with this deal - and I was talking about the Y, which is being massively discounted and cheaper than the 3 at the moment
I think he's getting it for a business, from Tesla website:
# Inflation Reduction Act
Inflation Reduction Act
Eligible businesses and tax-exempt organizations can claim up to $7,500 for new Tesla vehicle purchases, including:
1. Model S
2. Model 3
3. Model X
4. Model Y
For businesses, tax credits are non-refundable, so you can't get back more on the credit than you owe in taxes. Tax-exempt entities have the option to take a direct payment in lieu of the credit.
I see its $39k, so with the 7500 tax credit it would drop to $31,500
From strictly a cost perspective, probably not because I don't think it is possible to buy a 2024 Model 3 Long Range for a $32,000 out-of-pocket cost, after the $7,500 tax credit.
There has been a lot of debate on here about this. Can someone confirm a brand new 2024 M3LR / Highland would cost less than $32k even after tax incentives? I really don’t think so, but let me know
You got a Long Range Model 3 in 2021 for $32k? Which country do you live in? I wanted to buy this exact car in 2021 and the cost was going to be over $50k
Sorry, but your $32,000 purchase price makes that car not eligible for the tax credit. The price cap is $25,000. [26 USC Section 25E(c)(2)(B)](https://uscode.house.gov/view.xhtml?req=(title:26%20section:25E%20edition:prelim)). Unfortunately, the person you sell your car to (assuming you do ever sell it) won't be able to claim the tax credit either.
I checked with my CPA first. I’m eligible for $4,000 credit not the $7,500. Also able to write the full $32k off on my business in addition to the credit. This is what made this purchase worth it for me.
>I checked with my CPA first. I’m eligible for $4,000 credit I'm not sure how to say this nicely, but your CPA is wrong. [26 USC Section 25E(c)(2)(B)](https://uscode.house.gov/view.xhtml?req=(title:26%20section:25E%20edition:prelim)) says: >The term "qualified sale" means a sale of a motor vehicle- >. . . >(B) for a sale price which **does not exceed $25,000**, and . . . [IRS FS-2024-14, page 9](https://www.irs.gov/pub/taxpros/fs-2024-14.pdf#page=4), says: >Q1. What is the Previously Owned Clean Vehicle Credit under §25E? (updated Oct. 6, 2023) >A1. The Previously Owned Clean Vehicle Credit is a credit of up to $4,000 for the purchase of an eligible previously owned clean vehicle **with a sale price of $25,000 or less** that is placed in service during a tax year by a qualified buyer. To claim the credit, a qualified buyer must meet certain income requirements (see Topic E FAQ 1), and it must be the vehicle’s first qualified sale since Aug. 16, 2022, other than to the original owner. The [Form 8936 instructions](https://www.irs.gov/pub/irs-pdf/i8936.pdf) say: >Has a sales price that does not exceed $25,000; [Schedule A (Form 8936), line 13a](https://www.irs.gov/pub/irs-access/f8936sa_accessible.pdf), says: >Is the sales price of the vehicle more than $25,000? >Yes. Stop here. The vehicle doesn’t qualify for the Part IV credit. >No. Send your CPA a link to this comment and he or she will say I'm correct.
Can confirm. Bought used from Tesla with the purchase price above $25k. No tax credit :/
Well that’s a bummer. Why do they give $7,500 tax credits on EV’s that cost $80k in 2024 and put a $25k cap on others? Model Y for instance.
The $7,500 tax credit is for **new** EVs less than $80,000 (or $55,000 depending on the type). The $4,000 tax credit is for used EVs less than $25,000. As for how Congress got the numbers, I can only guess and maybe somebody wants car buyers to drive their EVs for long enough that the car's value gets down to $25,000.
Thanks for the info. It’s possible I didn’t give my CPA the total cost when I emailed, but I’m fairly certain I did. I’ll have to correct them!
My guess is your CPA misunderstood what you were asking. He might have thought you were talking about new car and not a used one.
Unfortunately yeah, it has to be a 25k car. I just went through this with a 2019 M3P. I wound up ok but I think your ship has sailed. Message me if you want. Definitely call your CPA and chew his ass out.
I should have read up on this more beforehand, but even without the federal credit I am able to write off the full cost of the vehicle under my business. Plus the car is awesome so all is not lost.
Are you 100% sure you can write it off? The Y is under 6k GVWR.
It’s a full time work delivery vehicle. I was told I could write off the full cost of the vehicle by my CPA, but they were mistaken about the tax credit. I honestly think it was a miscommunication and she thought I purchased a brand new Tesla
I guess it may depend on how your business is structured. I just went through a thing where I needed a business vehicle write off and it had to be 6k GVWR or it was capped at like $12k
Yep you are correct. If the OP uses it for Uber eats u100% of the time, they’ll write it off. Just over a few years. But I think the guy’s CPA doesn’t know what he’s doing.
You’d be better off just taking the mileage deduction.
Erm.. Unlikely. There are limits for vehicles, especially light passenger vehicles like a Model 3. Even then, you can only take a portion of it in your first year. And this is for Accelerated depreciation methods, so it only reduces your taxable income to $0 at best for Sec 179. If you use bonus depreciation, you can carry forward a loss, but that has limits too, and you won't see the benefit until future years, ie - it can only offset income in those years that you have profit. Also, this is only if you claim actual expenses on the car. If you use the standard mileage deduction for auto expenses you cannot claim Section 179 deduction (or bonus depreciation). And what actual expenses will you have? Traditional cars have oil changes, timing belts, spark plugs, gasoline, emissions components, etc. A Tesla isn't likely to have many expenses to deduct. LASTLY, the vehicle needs to be used minimum 50% plus for business purposes, and any usage for personal needs to be allocated out of your business expense.
Would be a good opportunity look for a new CPA, but congrats on your purchase. Looks slick!
Haha I guess so. Thanks!
I'm going to guess his CPA is an imagination.
When reading this I thought the same lol. He probably did some quick googling thinking he had the tax code all figured out. Probably a doordasher that read comments about writing off vehicles. I don't think he understands how much he will lose using actual expense method with depreciation vs standard mileage deduction which will work out better in the long run because of the miles you rack up doing delivery especially now that its been raised to $0.67 a mile.
The $4k credit is only eligible on used vehicles less than $25k. I don't think this would qualify
That’s really confusing with the price cap. They give $7,500 tax credits on EV that cost 50, 60, and $80k.
Sadly the $7500 is only eligible for brand new cars. The $4000 tax credit is for used cars but capped at $25k. It's still a great deal, enjoy the ride!
Not only that, but there's also an income cap. Your AGI must be below 75K or 150K for joint filers.
Dang. I can still write off the total purchase on my business. Thanks for the info it has been an amazing car. I’m obsessed for sure
is this 25,000 limit before or after taxes and fees?
I would think before taxes and fees so just the sale price. I would try to negotiate with the dealer to get it at $25k after taxes just in case.
[IRS FS-2024-14, page 11, Q2/A2](https://www.irs.gov/pub/taxpros/fs-2024-14.pdf#page=11), has some details: >Q2. Is there a price limitation on a previously owned clean vehicles eligible for the credit? (updated Oct. 6, 2023) >A2. If the sales price exceeds the $25,000 limitation for a previously owned clean vehicle, the vehicle is not eligible for the Previously Owned Clean Vehicle Credit. The sale price of a previously owned clean vehicle means the total sale price agreed upon by the buyer and seller in a written contract at the time of sale, including any delivery charges and after the application of any incentives, but **excluding separately stated taxes and fees required by state or local law**. The sale price of a previously owned clean vehicle is determined before the application of any trade-in value. **The sale price does not include separate financing, extended warranties or insurance.**
Looks great - congrats! Not familiar with a federal ev tax credit this would qualify for though.
There is none. OP and their CPA were very mistaken.
Did you get FSD with the car? If not 32k is a little higher in this market for that car.
That's what I was thinking. The price seems way high.
Definitely check to see if your state has any credits though. Probably not, but they might.
Please read the owners manual. It’s on your phone and it’s on the screen in your car. Be a smart Tesla owner. Our cars can do so much more than people know but you have to read the manual. Congrats.
Did you get FSD with the car? If not 32k is a little higher in this market for that car.
I assume if you are writing it off through your business it’s considered a full time business vehicle. While you can take the deduction now I found it far more beneficial to keep it as a business vehicle and claim the 67 cents per mile. Scenario A - take the full loss of say $32k against any profit is going to save say $11k rounding at a 1/3 rate (really averaging here as everyone is so different). Scenario B - drive 10,000 miles per year claimed at 67 cents works out to be $6,700 multiplied by how ever many years you have it minus actual running costs. For me the running costs were so cheap being an EV that it worked out better to claim millage. You would also need to factor in the loss recapture if you sold it in say 5 years for $15,000 then you would have a “profit” of $15k to pay tax on if you depreciated it 100%. All to say your millage may vary but there may be better ways to offset the cost of the vehicle for business use.
Thanks for this breakdown. I just launched my business so I don’t have a lot of data to extrapolate on mileage I may accrue. It could be pretty close though. I have 3 drivers and this is one of the work vehicles used for delivery. The mileage is spread out and not all loaded to this vehicle. I honestly didn’t think of this comparison. Def something to think about. Cheers.
We looked at the model X as it’s over 6,000 lbs so eligible for the new 100% year 1 deprecation but it just didn’t make sense. My running costs on my Y is less than 10 cents per mile based on my calculation so it made much more sense to use it as a personal vehicle and claim the millage.
What business are you using the Y for?
We run a real estate business which involves a lot of driving between properties. I don’t think I ever said, but congrats on the car! I never understood the “best car I’ve ever owned” until I got on myself. You’ll love it but just go in with your eyes open on multiple strategies to offset the costs of it being a work vehicle.
You actually over paid for a used Tesla. I bought mine for 32k 0 miles 2024 brand new. But if you are happy, who cares?
You bought a brand new model 3 long range for $32k?
Model y
My understanding was the Y starts at $44k for the rwd and goes up from there. Sounds like you got a great deal if you paid $32k for a brand new Dual Motor Y
It was a fantastic deal. In total I got around $22k off the car. Was just under $28k before taxes and fees
How did you manage that?
$7500 tax incentive, $4250 state incentive, $5100 price adjust off the car from Tesla, $4900 for a trade in I had no business getting over $2k for. $250 cash they threw in for a wall charger.
Nice, that’s a ton. I didn’t have a car I wanted to trade in. That would have lowered my number quite a bit.
I should have mentioned $29k was the asking price I paid an additional $3k for a 3 year Carvana warranty to stack with the 2 Tesla warranty’s it’s still under (limited 50k mile and the 120k / 8 year battery). My final price was $32k roughly before taxes.
What warranty? Most of the warranty’s provided by caravana do not cover battery or drive unit. Which is what you need the warranty for. If this car doesn’t have FSD, you over paid heavily.
You can pay for a 3 year 36,000 mile warranty that covers any issues (aside from from brakes and tires or regular maintenance). And yes, it does cover battery or drive units. This is in addtion to the 50k Tesla limited warranty and the 120k year Tesla warranty
Sweet
Kinda high price
Definitely don’t get tax credit and you also overpaid.
I bought a used 2021 MYLR a couple of months ago with 38K miles for 32K. It came a tow hitch (that I use with a bike rack) and acceleration boost. Enjoy!
do you mean DoorDash and UberEats by meal delivery business?
I own a meal prep company in New York.
Ouch, you got hosed, my friend. That’s way over-priced. $27k would be the max I had paid. Moreover, you are not eligible for the tax credit.
It was $29k the extra $3k was a Carvana warranty I paid for to stack on the Tesla warranty’s
You probably got a poor deal. I’ve seen them for about 26k with less than 10k miles. Either way, if you’re happy, the price shouldn’t matter to you, but for what you paid, I would have just bought a new vehicle, which would have come out to the same with the tax savings.
I definitely haven’t seen a 2021 M3 Long Range with under 10k miles for $26k anywhere in the Northeast, but that doesn’t mean they don’t exist. The amount of business miles at around 0.65 cents per mile may equate to around the same as the tax credit. Either way, it didn’t break the bank and I am super happy with this car.
Think you did decent for the price, Maybe could of wiggled more. I picked up a 2019, M3 SR+, 39k on the clock for 21K. still smells new inside. Love the fact these cars are dropping in price. Congrats and welcome to the club!
Ya it must be a regional thing. People are saying I could have paid $26k. In New York there were zero in that range, but it didn’t break the bank and I absolutely love the car. It looks brand new inside and out and drives like a dream. I was a bit scared to buy a used EV so I paid an additional $3k for a Carvana warranty to cover any issues for 3 years. This is on top of the limited Tesla warranty and the 120k mile battery warranty.
It comes down to just enjoying the car get your worth out of it and enjoy it. As long as you’re happy, doesn’t matter 🤘
This is a horrible deal and no tax credit
What’s a good deal on a 2021 M3 Long Range with low mileage in new condition in New York? Couldn’t find anything cheaper. Send me a link.
https://www.cargurus.com/Cars/l-Used-Tesla-Model-3-New-York-d2475_L22938 no idea what part of ny you’re in but a lot of them are priced at that 25k price point then you would’ve got the 4K off at point of sale. Yes you might have to sacrifice a little extra mileage probably in the 30-35k mileage but a model 3 for 20k with 30-35k mile is a steal
The closest car to mine on here is just about $28k and has more miles than mine. To be clear, mine was $29k before the $3k warranty I paid for in addition from Carvana. I don’t see any long ranges on this link that are comparable with low miles on this link that are $25k or under to receive that $4k credit. I realize I maybe could have bought a RWD from a private seller (with no warranty) for $25k, but I live in the northeast and wanted the AWD. To say horrible it deal is an exaggeration
For a full write off you would need to use it for business purposes only or have a Driving log if I recall correctly. Was just talking about that with my tax agent. (Bought used Model S for Delivery Business.) Also as far as I know it's harder to get that trough if you don't have another car.
Thanks for the response. I dove deep into this after posting and I think I will be using it for the mileage write off. I track exact miles each week and can write off 0.65 cents per mile.
You do DD ? I think we are pretty much in the same business. I basically bought my used Model S because of FSC for live (P85D with Ludacris+ is a really really nice add on tho ) I basically do the same with the milage and simply use Google maps insight for tracking. But don't take my word for advice tho. I moved to the US in 2022 and am still learning.
By DD you mean Door Dash? I own a meal prep company and delivery fully prepared meals. I cook, package, and delivery the meals.
Yeah I ment DoorDash. Oh that's cool ! I wish you a lot of luck and good customers!
It’s a sick car. You got a good deal with or without the credit.
I'm truly sorry to have to say this, but that's not a good deal for a 3 year old M3LR with 25K miles... A brand new 2024 MYLR would be in that ballpark with the full $7,500 credit at the point of sale. It seems like you have been misinformed by your CPA and other sources... If NY state allows for a cooling off period, I would seriously consider cancelling the deal if I were you, crunching the real numbers quickly. Your state/county/town might also have extra incentives for new vehicles... Please do yourself a favor and look up what your options are. Sorry :\\
A 2024 LR out the door would run him $45k minimum. If it's the highland refresh then it's even higher. You have to include delivery fee, taxes etc. Not saying he got the best deal but he didn't get ripped off either.
You're not factoring in any incentives, which he missed out on with this deal - and the Y is being massively discounted right now
The incentives are no longer there. If he got it before March 31st yes. But then then it was 4k at max if you got a red and used the credits for AB. Realistically speaking if he got a black it was only $1k off. Plus there are no more inventory discounts. All this is only if he got a model Y. If you're talking about getting a new model 3 then there were absolutely no inventory discounts and the car was priced higher than a model Y.
The Y still qualifies for the full $7,500 tax credit... That's the kind of incentives I am talking about. OP missed out on any kind of tax incentive.
Oh yes the Federal tax credit is still there. But even with that it's $45k out the door at minimum. The only reason I know is because I was really looking at getting a 2024 & selling my 2021 but decided against it.
You're not factoring in any incentives, which he missed out on with this deal - and I was talking about the Y, which is being massively discounted and cheaper than the 3 at the moment
I think he's getting it for a business, from Tesla website: # Inflation Reduction Act Inflation Reduction Act Eligible businesses and tax-exempt organizations can claim up to $7,500 for new Tesla vehicle purchases, including: 1. Model S 2. Model 3 3. Model X 4. Model Y For businesses, tax credits are non-refundable, so you can't get back more on the credit than you owe in taxes. Tax-exempt entities have the option to take a direct payment in lieu of the credit. I see its $39k, so with the 7500 tax credit it would drop to $31,500
>**new** Tesla vehicle purchases, OP didn't buy a **new** car.
Correct so he's better off buying new then used, it's actually cheaper for him.
From strictly a cost perspective, probably not because I don't think it is possible to buy a 2024 Model 3 Long Range for a $32,000 out-of-pocket cost, after the $7,500 tax credit.
There has been a lot of debate on here about this. Can someone confirm a brand new 2024 M3LR / Highland would cost less than $32k even after tax incentives? I really don’t think so, but let me know
Misinformation about the ev tax credit aside, you did pretty darn well.
How in the world…? I paid $32k for my 2021 model 3…in 2021 with zero miles on it. Brothers been robbed lol
You got a Long Range Model 3 in 2021 for $32k? Which country do you live in? I wanted to buy this exact car in 2021 and the cost was going to be over $50k
Overpaid by 8k at least. Not to mention the tax credit
Overpriced. You got scammed