New EV tax credit program going to screw up my ID4 delivery.

[Hersbird]

Last year I put money down on a reservation for an ID4 AWD and early this year locked it in with an additional deposit. A few weeks ago I got my estimated delivery date for mid November and I was pretty stoked. It's German built but because VW hasn't hit 200,000 units sold it qualified for the full $7500 credit. Now this new bill makes the assembled in North America requirement effective upon the president signing the bill.

I could barely afford a $48,000 vehicle before, only because I would get the $7500 tax credit when I filed in January, now that's out the window. I guess I still have a reservation on the Lightning which starts at $41,000 and is North American, but the battery source issue may drop that one as well. I'm also so far down that list I didn't expect anything until 2025.

Oh well, NO EV FOR YOU!

[freebeard]

No Thanks for them.

[rmay635703]

As long as you take delivery before 2023 your golden

At this moment in time

NO EV CURRENTLY AVAILABLE CAN GET THE FUTURE 2023 CREDIT

My guess is that they will fix the useless credit in reconciliation but who knows?

[Isaac Zachary]

Ya, EV's are frustrating like that.

I don't think we're at the point you can buy an EV to save money yet, unless you have some very specific circumstances.

I don't think I could afford a $20,000 car, let alone a $41,000 car or $48,500 car.

Going on 12 years after the Nissan leaf launched and there still aren't any cheap, good, reliable EV's to buy.

[redpoint5]

The "credit" is a wealth transfer to automotive manufacturers. When a credit is available, the manufacturers charge full price. When the credit isn't available, they offer "manufacturers credit" for roughly the same amount.

Price is the intersection of supply and demand. No manufacturer is going to leave money on the table by selling something at a lower price than demand dictates.

Whether or not one gets a "good deal" buying a new car has more to do with overall market conditions. If it's a sellers market, the buyer won't get a good deal. If it's a buyers market, there's probably a surplus of inventory and a recession slowing the velocity of money.

[Hersbird]

Originally Posted by rmay635703

As long as you take delivery before 2023 your golden

At this moment in time

NO EV CURRENTLY AVAILABLE CAN GET THE FUTURE 2023 CREDIT

My guess is that they will fix the useless credit in reconciliation but who knows?

Nope, the second Biden signs it the made in North America (Canada, USA or Mexico) goes into effect immediately while the other provisions start 1-1-23. It's just stupid they didn't leave in place the current deal and make everything start on that date.

So if it's true the $7500 was already baked in, it's gone now but they won't drop the MSRP even $500. It already had gone up $1300 since I put in my reservation and they won't honor the original MSRP they had when I put money down. It has even gone up more since I "locked" it in with even more money, and that locked in status means I'm not allowed to change it to a 2023 made in Tennessee version without starting completely over in the line.

The least VW could do is just give me one of the first Tennessee cars people have only been waiting 1-2 months for while I have been waiting a year now.

[JSH]

If you have a written binding contract to buy your ID.4 you are good

Page 145 of the text:

(l) TRANSITION RULE.—Solely for purposes of the application
of section 30D of the Internal Revenue Code of 1986, in the case
of a taxpayer that—
(1) after December 31, 2021, and before the date of enactment of this Act,
purchased, or entered into a written binding
contract to purchase, a new qualified plug-in electric drive
motor vehicle (as defined in section 30D(d)(1) of the Internal
Revenue Code of 1986, as in effect on the day before the
date of enactment of this Act), and
(2) placed such vehicle in service on or after the date
of enactment of this Act,
such taxpayer may elect (at such time, and in such form and
manner, as the Secretary of the Treasury, or the Secretary’s delegate,
may prescribe) to treat such vehicle as having been placed
in service on the day before the date of enactment of this Act.

https://www.congress.gov/117/bills/h...7hr5376enr.pdf

[Hersbird]

Originally Posted by JSH

If you have a written binding contract to buy your ID.4 you are good

Page 145 of the text:

(l) TRANSITION RULE.—Solely for purposes of the application
of section 30D of the Internal Revenue Code of 1986, in the case
of a taxpayer that—
(1) after December 31, 2021, and before the date of enactment of this Act,
purchased, or entered into a written binding
contract to purchase, a new qualified plug-in electric drive
motor vehicle (as defined in section 30D(d)(1) of the Internal
Revenue Code of 1986, as in effect on the day before the
date of enactment of this Act), and
(2) placed such vehicle in service on or after the date
of enactment of this Act,
such taxpayer may elect (at such time, and in such form and
manner, as the Secretary of the Treasury, or the Secretary’s delegate,
may prescribe) to treat such vehicle as having been placed
in service on the day before the date of enactment of this Act.

https://www.congress.gov/117/bills/h...7hr5376enr.pdf

But I can't get a binding contract. They don't even have a VIN number assigned. The contract would be between me and the dealership anyway, not VW. The dealership says they can't by law put me in a contract until they possess the car and the car hasn't even started production yet.

I guess some dealerships in some states are writing up something they hope will stand up to an IRS audit but they all contain the language "we have no idea if this works for tax purposes" or something to that effect. I guess by that logic I can just not even buy a car, claim the credit, and take my chances, if it's all such a mystery.

[Isaac Zachary]

I would think a reservation would be considered a contract. But I'm no lawyer.

[Hersbird]

Originally Posted by Isaac Zachary

I would think a reservation would be considered a contract. But I'm no lawyer.

There is nothing binding about it. If it were binding I at least would get the car for about $1400 less because that was the price back in 2021.