Personally, I reserved an ultra with the intent of driving it for a while.
If you’re in a place with 10% tax on a purchase, trying flip might not be the best idea, especially since you don’t technically qualify for the tax credit at all if you purchased with the intent to resell.
For example, if a customer has made a non-refundable deposit or down payment of 5 percent of the total contract price, it is an indication of a binding contract.
We made non refundable deposits, hence, it’s a binding contract.
Yes but when you converted your reservation to an order that $250 became non refundable and that made it binding. You’re correct that a refundable reservation is not binding.
Terrible lawyer here! And someone who converted to the $250 non-refundable! Just because this reservation is non-refundable has little to do with whether or not the state you live in and/or the IRS will consider it “binding” for these purposes. I am skeptical this will result in anyone getting to claim the credit. But I don’t qualify for it now, so like everyone else I converted on the off-chance it works out.
Fisker’s Terms of Reservation has this as bullet #3:
The Reservation Terms are not an agreement to purchase nor for the flexible lease of a Fisker EV vehicle, nor does it constitute a purchase or order of a Fisker EV vehicle and will not be recognized as such in official company communications." Reservations Terms | Fisker Inc Reservations Terms | Fisker, Inc.
Ergo, I don’t believe ANY reservation (refundable or not) qualifies as a binding contract to purchase, and would require a deposit (terms governed by your state wrt ‘refundable’ or not) and signed purchase agreement to secure the EV rebate. I just hope Henrik has this all sorted when the Pear finally rolls.
Pretty sure those are the terms from the reservation doc, not the order. I do recall from my Lucid doc they were very clear that I was making my deposit non-refundable.
But agreed, we don’t know for sure, but I would assume that the states that want more EVs on the road and the amount is small enough that it’s not the end of the world if we lose it.
For orders (not reservations), the IRS should let consumers provide higher deposits if required. Consumers were following instructions and were told they were signing “written binding contracts.” Since the definition was unclear from an IRS standpoint, consumers should be given the opportunity to rectify the situation.
I have Pear reservations, and never saw the ‘turn into orders’ email other than what was posted here. I can’t find the terms of ‘order/purchase’ anywhere on their site, but I’m still looking.
So far, all I can find is about ‘pre-order’:
"What is the difference between a Fisker Ocean reservation and a Fisker Ocean One pre-order deposit fee?
Your reservation fee is the $250 USD that you initially paid to secure your place in line for a Fisker Ocean. Your pre-order deposit fee is the $5,000 fee that you pay to secure a Fisker Ocean One Launch Edition.
When you secure your Fisker Ocean One, you will have paid $5,250 total."
Ocean reservation holders had the order option and the terms are quite different from the reservation terms. I’m in for $250 for an Extreme and hoping for the best.
If anyone could post those ‘pre-order’ terms, since I can’t find them, probably not public-facing on their site yet. I think if Fisker says you have a ‘pre-order’, you should be fine.