I dunno… It’s not like NJ is dirt cheap to live in or do business in either. There’s gotta be something else going on here.
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I called nyserda and asked them
between the lines it sounds like they are trying to give an extra (backhanded) incentive to NY dealers as well.
Of course NY dealers will try and hold onto the cash and consider it to be part of their $$
I was emailing with a dealer and I flat out told him that I would just get it from Jersey out of principle alone if basically they were just going to pocket it and keep the deal the same as what I can get in NJ. Why deal with the hassle?
Agreed,
to make matters worse the real discount is less than $1700 the $$ is taxed so total money is really about ~1500
so if you find a dealer in a different state who gives you the car for a $1500 discount you are at the same place
The best possible MSRP discount in NY state that I got so far is 4%. To be worth buying a touring from NJ you should have an additional 4.54% discount.
Factor in the tolls to get you there, you need 9% discount of the MSRP.
I got a touring discount of 6% in NY. That is before ny ev rebate. I actually have another called me with 7% discount but too lazy to drive 1.5 hours. So its possible…
Where exactly? You can PM me. I am hoping for more these days, with the month ending
One of the reason you will not get above 6-7% in NY, dealer need to pay taxes (fed) income on the $1700. I think you waited too long to get a deal. Its not like clarity is piling up on dealers lot.
I pm’d you the dealer but let me know if they have one and what deals you got.
Why would the dealer need to pay taxes on a direct to consumer, taxable (on the customer end) rebate?
Because feds want to get their hands on money anyone receive. Those rebates are not coming from manuf but from state. Think of it as similar to state unemployment check. On PA , when i got a rebate check in the mail, i have to declare that on turbotax and it is taxable by fed and state as well. So those that are getting huge ev rebate will get a shock to find out that it is counted as income and taxable come april. Imagine $2500 ev rebate on a 32% bracket = $800.
Example (CVRP)
https://ttlc.intuit.com/questions/4384811-is-the-california-electric-vehicle-rebate-taxable-income-the-amount-is-2500
I get the post sale rebates when they are cutting you a check, but this is an incentive that you are paying taxes on at the point of sale, it doesn’t really seem fair to anyone involved.
The individual is paying sales tax/state but not fed. I dont have to file that on my 1040 because i didnt receive any check. The dealer do and i think that is specified in the program. So who do you think the feds will come after to collect taxes?
The dealer is advancing the $1700. They still have to collect that from nyserda. The process is just streamlined in NY for ev buyer. So it is really still a post sale rebate to the dealers point of view. It would be nice if i dont have to pay sales tax on that one. But then the dealer will probably just give less discount off msrp.
I agree with @ElectricEliminator and don’t think these rebates should affect a dealer’s sales price or taxation at all. From what you are saying, dealers would also pay taxes on manufacturer rebates then? 
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If anything wouldn’t selling a car at a loss, or “loss” reduce their tax obligations?
I am not going to expect you to understand how business taxation works but any accountant or businessman that do financials will know what i am talking about.
Taxation takes years to understand. I just learned all of that crap doing a startup. You wont believe how someone in business can get away with paying so little taxes.
@ElectricEliminator, you are absolutely right. Selling at a loss say $1000 to gain $210 of taxes? That is not good business practice. In the end, you still lose $790 doing business. Although manuf sometimes sell cars at a loss and offset their gain in high profit margin suv. Same reason why ford is giving up on sedan because it is losing money on that segment.
Ok here it is. A 1099 is usually issued for types of income. A manuf does not issue a 1099 to dealer on rebates/incentives since they never really receive money but pass those to consumer. Now if dealer didnt pass the rebate to consuner and kept it themselves then yes that is taxable and will be considered income.
- Taxes
NYSERDA will be issuing a 1099 for the reimbursement of the vehicle rebates paid to car dealerships. Reimbursements may be considered taxable income by the U.S. Internal Revenue Service and the New York State Department of Taxation and Finance. It shall be the sole responsibility of the Dealer to seek professional advice and determine the tax consequences of the reimbursement of this rebate.
That $1700 at 21% corporate tax rate result in $357 payable by the dealer to IRS. Since the buyer paid sales tax, then dealer will not pay state tax bec that is double taxation.
Sooooooo maybe all these NY dealers should stop being greedy and quit pocketing this money? I’m sure they are actually passing it along and giving less discount to offset it, but I hope a lot of them are doing it wrong and get hit with the taxes, because basically that’s what they are doing here.
I think what I’ve got is the most agressive lease deal on a touring $299 all inclusive, $0 due at signing(they rolled in everything including first month). My experience with bread and butter cars(Toyota, Honda, Nissan) is you can get a very aggressive deal by working with the dealer directly. Brokers couldnt help this time and they were off by $50 to $100 a month. I guess it makes more sense to use a broker with german Cars… I got my previous Audi A6 premium plus, Sport Quattro for $500 a month(tax rolled in payment), however same broker could not get me a good price on the Clarity and Accord.
That is actually good. Is that for november?
Got a quote for Touring in NY.
$4700 down (including tax, fees and first month payment), $168/month, 12k/year.
Is this a OK deal?