I’m considering this as well. Would suck if the fed rebate came back at a later date tho.
It seems likely that they’ll be introducing a new $7,000 credit for an additional 400,000 vehicles.
In that scenario it would be possible to get $12k off of a new Tesla in incentives alone. This won’t really affect leasing since Tesla doesn’t pass on the tax credit beyond a minimal bump in residuals.
The MSRP caps don’t include destination fees or any accessories options (floor mats, protectors, etc.)
An ID.4 Pro S RWD starts at $44,495, then destination of $1,175, making the price $45,670. You can get one with all the cargo organizers and all weather liners you want, but if you want the Gradient Package or AWD then you’re now in the “soft-cap” territory.
Are you sure? The $55,000 cap for rebate eligibility definitely factors in the destination fee.
That would make sense though based on the rebate eligibility list and also that additional $1,000 or so would push a lot of vehicles into the $45,000-$55,000 range.
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There’s also a possibility of a very small or even non-existent window of time where the NJ program has any funding remaining and the fed rebate becomes active.
Maybe I’m overthinking this.
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It would be phased out again rather than immediately discontinued after 400,000 vehicles so it is possible next summer we’ll see a combined federal incentive and state incentive.
They didn’t include destination charges in Phase 1, (I was someone who doubted that was was embarrassingly proved wrong) but here’s the official terms and conditions
It seems like they might have changed it since year one definitely did factor the destination fee into the $55,000 limit. I know this from being active in many Tesla communities and also reaching out to the BPU.
Not that I remember… I knew people last year getting cars that were $54,990 before destination.
($51,990 Model Y LR, $2000 Red Ext, $1000 White Int) because it fell right under the cap without a destination charge.
I was thinking of January 2022 but you bring up a good point. Maybe July 2022 is better for people who can plan ahead/wait that long.
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They make this so complicated you can only over think. If. It were simple, it would be too easy.
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excluding destination kind of sucks even more for the Mach E because just adding the comfort pack takes it to $45,195 before destination. That really stings. Winds up being a $6k option instead of a $3k option because of that lousy $195.
Personally being a deal hunter like the rest of us and an actually passionate EV driver, I submitted some comments to the BPU about how they should structure the rebate.
The main goal of this program was to expand affordability of EVs to the general public of NJ.
To be short and sweet people who can afford to buy a Tesla don’t need $2k let alone $5k.
My Leaf had an MSRP of $38,490, and at the Model 3’s lowest it was $38,190. The difference is that the Leaf is eligible for the fed tax credit, I can negotiate the sales price, and Nissan was giving away THOUSANDS of free money. Out the door if I wanted to buy the Leaf it would’ve been $29,000, then after the tax credit it would’ve been (net-price) $21,500. My lease selling price was $21,225 after all my incentives and the dealer discount.
I can barely afford a $34k car let alone a $39k one. If you can afford to drop $34k/$39k on a compact sedan to buy then frankly you don’t really need a $5k incentive to help you get your flexer-mobile. (This excludes a couple who can purchase a three row SUV at around the same price or more).
I imposed that we do a “selling price cap” for the $5k incentive at $40k including destination costs and consideration of the fed tax credit for people who choose to buy over lease. Then we’d so $2k or even $2.5k for cars 40-50k.
EX.
- Lease
MSRP $47000
Dealer Discount $2000
Lease Cash $7500
Selling Price (excluding taxes, fees, and accessories) $37500 - Buy
MSRP $47000
Dealer Discount $2000
Selling Price ($45000)
Consideration of Fed Tax Credit
Selling Price (in the eyes of NJ) $37,500
This would pretty much write out Tesla, but it would possibly include cars like the XC40 recharge (that actually had options) and the E-Tron. If some dealers were willing to work you could possible get even just a $2k inventive if you were leasing.
This scenario also alleviates some peoples concern about this incentive, “de-incentiveing” dealers giving a dealer discount.
year one excluded destination
I disagree on the part regarding Tesla. A $5,000 discount has a significant impact on the amount of buyers that are able to afford Model 3. $37,876 was the average sale price of a light passenger vehicle in 2020.
The program works well now since if a customer wants to upgrade to all-wheel drive then they’d be getting a reduced $2,000 incentive. Furthermore it doesn’t apply to Performance models or Model S/X. It’s making base mass-market Tesla vehicles more affordable.
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IMHO, if the difference between a $40k car and a $45k car is the difference between affording it and the poor house, then I contend that person should not be looking at either one of those options, nor anything even remotely close to that. None of these higher-end EVs should be a consideration if the buyer NEEDS the incentive to be able to afford it.
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I don’t think a lot of Tesla buyers need the incentive, but what’s nice about it is that it makes electric vehicles more in-parity with ICE pricing. I.e. you could pay $35k for a fully-loaded Hyundai Sonata or get a Tesla Model 3, albeit a Standard Range Plus, for the same price. At that $35k vs $40k level there are absolutely going to be buyers where a $5,000 incentive either makes it more affordable or more of a realistic consideration.
Not that Tesla needs help with demand, but it does also have a similar effect at the higher end of the market: it’s an incentive for not buying a gasoline alternative.
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Totally agree. And I think that is the intention of the incentive. Not to help someone get more car than they can afford, but to help it make sense financially for those who could afford it normally.
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The program re-opened today, and as of 9pm EDT almost 25% of funding is used. How is that possible in 21 (or less) hours?!? The info was only posted and made available this morning, not at midnight.
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