New tax break on used EVs
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teslarati97
Well-Known Member
The seller must be a qualified dealer so the boost could be for a Clarity trade-in. What disturbs me even more is that Honda hasn't entered into an agreement with IRS to become a "qualified manufacturer". I mean the $210,600 2022 Bentley Flying Spur Hybrid is on the list for crying out loud.
Now you just need to find a qualified dealer who is selling a 2 year old Bentley for under $25K.
Jim Matthews
Active Member
Points to Gryffindor.
A dealer will dismiss any perceived additional trade-in value pretty quickly. They’d need to sell it to a qualified buyer and the price would have to be less than $25K.
Bring in a car that’s been detailed, has new tires and loads of accessories and they give you the same low-ball price as if it had none of those things.
Correlation does not imply causation.
Perhaps there are other variables that explain the rise in PHEV prices during the period from 3/22-8/22. Variables such as high fuel prices, chip shortages and inflation, to name a few.
I would like to ask the author why he believes that a potential future tax credit would impact the price of a fast selling vehicle months in advance of the implementation of said tax credit. On the surface it would appear that he didn’t give the subject much thought.
Perhaps there are other variables that explain the rise in PHEV prices during the period from 3/22-8/22. Variables such as high fuel prices, chip shortages and inflation, to name a few.
I would like to ask the author why he believes that a potential future tax credit would impact the price of a fast selling vehicle months in advance of the implementation of said tax credit. On the surface it would appear that he didn’t give the subject much thought.
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megreyhair
Active Member
Sorry to report but our Clarity is not on the list for the used-car EV rebate. See link below Maybe that will change when Honda decided to send info to IRS.
https://www.irs.gov/credits-deductions/manufacturers-and-models-of-qualified-used-clean-vehicles
Also on that list on that page was "Beginning January 1, 2023, if you buy a qualified previously owned electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a previously owned clean vehicle tax credit under Internal Revenue Code Section 25E."
This means the car would have to be sold to a used car dealer and then they sell it for the buyer to get the rebate. This means less $$$ for current owner when selling..
SAD!
https://www.irs.gov/credits-deductions/manufacturers-and-models-of-qualified-used-clean-vehicles
Also on that list on that page was "Beginning January 1, 2023, if you buy a qualified previously owned electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a previously owned clean vehicle tax credit under Internal Revenue Code Section 25E."
This means the car would have to be sold to a used car dealer and then they sell it for the buyer to get the rebate. This means less $$$ for current owner when selling..
SAD!
Imagine the simplicity if the wording said: Any vehicle that was originally eligible for a Federal Tax Credit.
The unfortunate reality is that the chosen ones are rarely the wisest among us.
I just checked the IRS website re the Clarity's eligibility for the used car tax credit. It appears Honda still has not submitted an application to the Feds.
From where I sit, this is doing a disservice to both their customers and their brand. Qualifying for the tax credit should produce some bump in our trade-in value.
I realize Honda doesn't seem particularly attuned to our issues with the car, but that said, is there anyone/anywhere we might write at corporate in hopes of finding an attentive ear?
Btw, I've loved my Clarity, but it's time for us to trade it.
From where I sit, this is doing a disservice to both their customers and their brand. Qualifying for the tax credit should produce some bump in our trade-in value.
I realize Honda doesn't seem particularly attuned to our issues with the car, but that said, is there anyone/anywhere we might write at corporate in hopes of finding an attentive ear?
Btw, I've loved my Clarity, but it's time for us to trade it.
The main benefit for a dealer of a tax credit on a used car, would be the ability to sell that car at a higher price, assuming they are selling to a qualified buyer. There’s no guarantee of that happening. They’ll hammer the car on a trade in. That’s what they do.
The ship may have sailed on selling a Clarity at a high price. Last summer was the moment. The car never sold well even with a Federal tax credit, state incentives and deep dealer discounts. It is also quirky and a bit outdated from a technology standpoint.
I like ours and plan to keep it for many years. It just requires a peculiar owner.