Question for those who sold their Clarity already

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Rick2112

Rick2112

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Hi All,
I have see a few post where Clarity owners have said that they sold their cars within one year, and for them, I have a question about the tax credit/subsidy/rebate.

I have read in the documentation somewhere that if an owner who received the tax credit or clean energy subsidy sells the car within a specified period of time (I think it was three years), they may have to pay back the money that they received. Has anyone who sold their Clarity dealt with this or considered it?

I bought about a year ago, and still love the car, with no plans to sell, but I was just curious.

Thanks.
 
No minimum time to keep the vehicle in regards to the Federal Tax Credit.
I believe CA rebate requirement is 30 months (prorated payback?), Oregon is 24 months or 100% repayment is due.
So there is no absolute answer, it depends on the issuing authority and policies will vary. When we submitted for our Oregon rebate, it was very clear in the application what the requirements were.
 
The federal credit has an explicit bit about purchasing the vehicle for the purpose of resale being disqualifying. So if you buy it, then immediately sell it, the IRS may eventually send you some less-than-nice messages :p
 
Assuming you register your Clarity, insure it and drive it for a reasonable amount of time, you can make a solid case that you decided it wasn't suited to your needs (or even felt unsure and at risk for injury driving it) and decided to sell/replace it.
 
petteyg359 said:
The federal credit has an explicit bit about purchasing the vehicle for the purpose of resale being disqualifying. So if you buy it, then immediately sell it, the IRS may eventually send you some less-than-nice messages :p
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This is more for those who are In the business of buying and selling cars, I believe.
 
petteyg359 said:
That's irrelevant. "For the purpose of resale" is a why, not a who.
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No, actually it's not. Just because you did it once doesn't make it a "purpose for resale". This is for people who are in the business of buying/selling cars. Just because you did it once, for what ever reason, doesn't make it a purpose of resale. I think you're taking the phrase a little too literally.

I mean think of it this way, in Your mind, what scenario would you see an Individual who is not in the business of doing so, would want to buy a car just to turn around and sell it? Not counting those people who, for what ever reason, sells their car down the road. I've sold my last 3 vehicles, originally purchased brand new. At no time did I buy them "for the purpose of resale" even though I KNEW I would sell them eventually.
 
Mariner91 said:
No, actually it's not. Just because you did it once doesn't make it a "purpose for resale". This is for people who are in the business of buying/selling cars. Just because you did it once, for what ever reason, doesn't make it a purpose of resale. I think you're taking the phrase a little too literally.

I mean think of it this way, in Your mind, what scenario would you see an Individual who is not in the business of doing so, would want to buy a car just to turn around and sell it? Not counting those people who, for what ever reason, sells their car down the road. I've sold my last 3 vehicles, originally purchased brand new. At no time did I buy them "for the purpose of resale" even though I KNEW I would sell them eventually.
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Then why are you so defensive about this? There ARE people who have posted here or on Reddit specifically about buying a car to get the tax credit and then immediately reselling it to some fool who doesn't realize they can't get the credit the original owner would already have claimed. Again, "who" is irrelevant. Either you bought the car to use yourself (or for a spouse or child or whatever) or you bought it to try to profit from the tax credit.
 
petteyg359 said:
Then why are you so defensive about this? There ARE people who have posted here or on Reddit specifically about buying a car to get the tax credit and then immediately reselling it to some fool who doesn't realize they can't get the credit the original owner would already have claimed. Again, "who" is irrelevant. Either you bought the car to use yourself (or for a spouse or child or whatever) or you bought it to try to profit from the tax credit.
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First of all, it's Your Post Your Defending. I'm not the one "being defensive" here.

Secondly, if there "ARE people who have posted here or on Reddit specifically about buying a car to get the tax credit", then aren't You saying that they can't take the credit? Since according to You, they would have bought it for the purpose of resale, ergo disqualifying themselves?? Well I certainly hope you work for the IRS, or at least a professional tax preparer, since you know more than those people lol

But, what ever. Hope those people did take the credit, as they should have.
 
Here's a Cambridge, MA, dealer selling a $23,500, 6,000-mile "**Lemon-Law buyback** Dealer Repaired" Clarity. I'd love to know the history of this Clarity PHEV and what repairs the dealer performed to make it whole! Who buys a former Lemon-Law buyback, anyway? Can't you get a new, 2018 Clarity in Massachusetts for around $23,500 after the federal and state tax credits and Honda's dealer cash?
 
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insightman said:
Here's a Cambridge, MA, dealer selling a $23,500, 6,000-mile "**Lemon-Law buyback** Dealer Repaired" Clarity. I'd love to know the history of this Clarity PHEV and what repairs the dealer performed to make it whole! Who buys a former Lemon-Law buyback, anyway? Can't you get a new, 2018 Clarity in Massachusetts for around $23,500 after the federal and state tax credits and Honda's dealer cash?
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There's always someone buying if the price is right - even for lemons! lol Many come with full manufacturer's warranty.

In the case you mentioned above, I'd think of someone without enough tax liability to benefit from a full federal credit, but who likes the car and it suits their needs perfectly. That person may be able to strike a deal on that lemon (say $20K) with some nice warranty coverage (Honda maybe + dealer) and drive away on a much reasonable payment than on a $30k+ one (again considering the fed rebate would not serve them). I think is plausible...
 
Lemon Law buy back cars can be a great deal. One must do their research to know that the problem(s) that cause the Lemon Law designation was fixed. For example, a few years ago I helped my sister get int a Kia Optima EXL that was designated a Lemon Law car buy back. The car was about $8k less and after negotiation we got about $2K more off the asking price. The dealer reported all the problems that occurred where fixed completely and all work had a full warranty (beyond the standard car's warranty). While my sister drove from San Diego (where I live) back to Santa Barbara (her home), she got gas. The next day she called me because the check engine light turned on. I asked if she got gas and she said yes, I then asked to check the gas cap to ensure it was tightly secured. She called back and said the cap was loose and tightened. A couple of days later she called again to report light turned off. A week later the light turned on, then turned off and did again a few times. I told her to take to local Kia dealership. When she did, the mechanic took it for a couple of days and reported the problem was first diagnose (and resulted as a lemon buy back) was not the core problem. He reported the seal around the engine was improperly installed and caused leakage (I guess smoke, gas, oil etc.). He fixed and gave the car an additional warranty on the work and the light never lit again. In fact I got the car with 11K miles (and $11.5K out the door) on the odometer and after 180K she finally purchased a VW Jetta to replace.
Bottom line, lemon law buy backs can be a great deal but one must do their research to find out the exact cause of the buy back. I didn't the first time but have been doing it since.
There are websites on the internet that only contain Lemon Law buy back cars and the car buyer/dealership that are familiar with those cars pluck them up.
 
My point was that the original owner likely received the MA rebate for PHEVs and the dealer was pricing this Lemon-Law buyback at a higher price than the original owner might have paid. If, indeed, the dealer reduces the $23,500 asking price and if, indeed, the Lemon-Law problems have been eliminated, this Clarity could be a bargain. But a 6,000-mile, Lemon-Law buyback at $23,500 doesn't sound like a bargain to me.
 
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