Quote:
Originally Posted by Spencer518
The Federal and State tax credits are an immediate hit to depreciation. You'll never trade it in for more than the net after those credits. No one will pay more for a used car than they can pay net on a new one.
Hypothetically, let's say your out-the-door price was $75k and your credits are $10k, so your net cost is $65k. Anyone else in your state can get that same net cost of $65k on a new 45e. Therefore the price on used ones must be below that for anyone to be interested in buying used. The $10k is instant depreciation.
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That sure as hell doesn't happen with Teslas. To the great frustration of many used car buyers I suppose.
Quote:
Originally Posted by moodyhank82
You are assuming that everyone is eligible for the full tax credit, which is not the case just like you seem not to qualify for the OL code or corp sale incentives since you are not aware of them. There is also no guarantee that every new buyer will get the 10% or better dealer discount. Furthermore, doing a quick search you can see let alone the 45e, you cannot find a used low-mileage MY20 40i in the country for $49K. Even the absolute base 40i xDrive retails for around $50k (roughly 20% depreciation in one year). It makes very little sense that the more expensive 45e should be cheaper despite having the same engine, extra features, and better fuel economy just because the original owner might be eligible for tax incentives.
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Basically for this reason. Original purchaser gets the tax credit. Doesn't mean that tax credit gets passed along in the form of greater depreciation. Doesn't seem to affect prices of off lease cars either.