gt1
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Re: I wonder how Tesla 3 Buyers will react to losing tax cre

Thu Aug 25, 2016 9:34 am

Jonathan wrote:I fully believe that a very large percentage, 40%+, that pre ordered the tesla, will not get one.

This is an optimistic prediction. I believe the cancellations will be massive. Why get an expensive Corolla size car when the gas is cheap?

johnnylingo
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Re: I wonder how Tesla 3 Buyers will react to losing tax cre

Thu Aug 25, 2016 1:16 pm

eneka wrote:I dont think they'll care that much. To get the full $7500, you have to be paying $7500+ in taxes already. If you're paying that much in taxes, you should be well off enough to not worry about it.


I disagree completely. A single filer with a taxable income of $50k will pay about $8k in Fed taxes for 2016.

Try living in Bay Area, LA, Seattle, Washington DC, or Chicago on that salary and tell you're "not worried" about a $7500 check? It's kind of a big deal.
2018 i3s REx / Mineral Gray / Giga / Tech Pkg / Parking / HK Speakers / Moonroof bought 6-12-2018 * ChargePoint Home 32a (Hardwired)

jadnashuanh
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Re: I wonder how Tesla 3 Buyers will react to losing tax cre

Thu Aug 25, 2016 4:24 pm

johnnylingo wrote:
eneka wrote:I dont think they'll care that much. To get the full $7500, you have to be paying $7500+ in taxes already. If you're paying that much in taxes, you should be well off enough to not worry about it.


I disagree completely. A single filer with a taxable income of $50k will pay about $8k in Fed taxes for 2016.

Try living in Bay Area, LA, Seattle, Washington DC, or Chicago on that salary and tell you're "not worried" about a $7500 check? It's kind of a big deal.


And, they'll be subject to the alternate minimum tax rules, and not get the full $7500 back, either! Assuming Tesla hasn't used up all of it's allotments by the time they get their car. Rude awakening, to be sure.
Jim DeBruycker
2011 535i x-drive GT, 2014 i3 BEV

gt1
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Location: Baltimore

Re: I wonder how Tesla 3 Buyers will react to losing tax cre

Fri Aug 26, 2016 8:33 am

johnnylingo wrote:
eneka wrote:I dont think they'll care that much. To get the full $7500, you have to be paying $7500+ in taxes already. If you're paying that much in taxes, you should be well off enough to not worry about it.


I disagree completely. A single filer with a taxable income of $50k will pay about $8k in Fed taxes for 2016.

Try living in Bay Area, LA, Seattle, Washington DC, or Chicago on that salary and tell you're "not worried" about a $7500 check? It's kind of a big deal.

This is a worst scenario. Someone with a family, mortgage and RE taxes may earn six figures and still owe less than $7500 to the feds. Still, $7500 is a good chunk of money for such family.
Everyone who doesn't care about $7500 has bought a model S or model X.

eneka
Posts: 92
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Re: I wonder how Tesla 3 Buyers will react to losing tax cre

Mon Aug 29, 2016 8:38 am

johnnylingo wrote:
eneka wrote:I dont think they'll care that much. To get the full $7500, you have to be paying $7500+ in taxes already. If you're paying that much in taxes, you should be well off enough to not worry about it.


I disagree completely. A single filer with a taxable income of $50k will pay about $8k in Fed taxes for 2016.

Try living in Bay Area, LA, Seattle, Washington DC, or Chicago on that salary and tell you're "not worried" about a $7500 check? It's kind of a big deal.



I'm no financial adviser but I can't image spending 60% of my income on a car! Ii should probably rephrase my post, but if you're making 50k/yr living in the bay area, you certainly won't be buying a tesla! If they're depending on the $7500, then it's a gamble if they don't have an early reservation, at least the money tapers off instead of just disappearing!
2015 i3 rEX Arravani Grey giga, parking, tech, 20"

DHuff
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Re: I wonder how Tesla 3 Buyers will react to losing tax cre

Fri Feb 10, 2017 12:59 pm

gt1 wrote:This is an optimistic prediction. I believe the cancellations will be massive. Why get an expensive Corolla size car when the gas is cheap?


I don't think that current gas prices are going to play that large of a factor in the Tesla purchases... or even with many electric car buyers.

People are starting to wise up. The whole "but it is cheap right now" argument. This is no longer enough for people because they know gas prices are just going to shoot back up again.

In my area, I am watching it rise every single day. And when it drops the price never drops as low as the last lowest time.

People aren't that dumb. They aren't going to keep getting fooled.

Plus, for most people that I know who own Tesla's, it is more about owning a Tesla, then it is anything else. They want to be a part of what Musk is doing. They want to be on the cutting edge. They want an American car, but they want it to be good. And they want something a little more exclusive.

Even the more expensive price I don't think is going to get most of the people that preordered to back out. I mean people bought the S and the X, and even all the Roasters. There are enough people with money. And more than enough people who want to spend that money on a Tesla.

I was in a Tesla store just the other day, and there was a guy sitting there with a sales rep, desperately trying to figure out how to get a loan so that he could have enough just to lease an S.

The buying decision of these cars is not going to rely on rationality as much as it is the desire for perceived status.

hightower82
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Re: I wonder how Tesla 3 Buyers will react to losing tax credit

Mon Mar 27, 2017 1:54 am

Another thing that hasn't been mentioned yet is the fate of the federal tax credit under the Trump administration. Assuming they don't fail miserably at tax reform like they just did with the healthcare bill, they may very well get rid of the whole EV tax credit program altogether before the 200k mark is even reached and likely long before Tesla comes anywhere near catching up with their reservations.

I can't deny that a big part of my decision to buy a 2017 BEV was based on the high likelihood that this tax credit is not going to be around for much longer (either because of Tesla's likely success or because of Trump).

What I'm really curious about though, is what will the lack of tax incentives do to the MSRP of EVs? Are they being marked up now because of the tax credit? Will Tesla or BMW actually lower their prices once the tax program goes away? And if they don't will people still buy these cars?

spinball
Posts: 261
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Location: WI, USA

Re: I wonder how Tesla 3 Buyers will react to losing tax cre

Tue Apr 25, 2017 7:58 am

gt1 wrote:
Jonathan wrote:Why get an expensive Corolla size car when the gas is cheap?


In other words, why buy an iPhone when you can get a flip phone? How'd that turn out? :mrgreen:
2017 REx - Platinum Silver - Deka

gt1
Posts: 261
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Location: Baltimore

Re: I wonder how Tesla 3 Buyers will react to losing tax credit

Thu Apr 27, 2017 3:50 pm

Don't stop there, compare with a pair of jars connected with a string.

dirtboy
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Re: I wonder how Tesla 3 Buyers will react to losing tax credit

Fri Apr 28, 2017 8:55 am

There's a difference between a tax credit and a tax deduction. Even those who don't pay any Federal income taxes can still get the full amount of the credit back as a refund.

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