What to do with a RAV4 Prime XSE Reservation at MSRP in California?

Ask the Hackrs
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1

Dear Hackrs,

I put in a deposit for a RAV4 Prime XSE at MSRP at the beginning of the year and after more than 9 months waiting, I’m finally approaching the head of the cue.

Now that the EV Federal Tax Credit is no longer available for this car, I’m not as enthusiastic about it anymore. However, I know people are paying $8-10K over MSRP to get these cars.

In addition to buying and then quickly selling the car, can you think of other ways to monetize this?

If I were to sell the car within 10 days of my original purchase, would I be able to claim the sales tax back in California?

I know I can always cancel the reservation, but that doesn’t sound like something a good Hackr would do.

Thanks as always for your feedback!

2

If I were to buy a PHEV, with all tax credits gone for PHEVs, I would still go for RAV4 prime because by far that’s the best PHEV I have seen so far. When I look at other PHEVs, all of them are somewhat just equivalent to their hybrid variants. So, if tax credits are not there, they are better off grabbing the equivalent hybrid as it doesn’t make any financial sense anymore for the PHEVs. But, not for the Rav4 prime. It’s quite powerful compared to hybrid. Moreover, the EV mode doesn’t suck like other PHEVs. It can stay in EV mode most of the times, and if I remember right, it has got a heat pump or so too. My Santa Fe PHEV kicks in gas even in EV mode for either want of power or for heat.

And, I strongly believe it will hold its value. If you can afford it even without tax credits, I don’t see why you shouldn’t go for it.

3

Why did you want a RAV4 in the first place? To me, this class of vehicles are bad value as they are raised version of their compact versions all of which are lower quality than their bigger class siblings. Price bump is well justified to buy Highlander over RAV4 ( so is Rogue vs Pathfinder etc). I never understood people wanting RAV4s let alone paying over MSRP for them.

4

You answered your own question. Make some phone calls. Try to find a dealer to buy this from you. It won’t be hard.

5

With the tax credit gone, I doubt that people are paying $8-10K over MSRP anymore.

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I’ll happily take the allocation if you don’t want it :slight_smile:

7

Are or were? IDK if people are still paying the same price for a vehicle whose net cost has gone up by $7,500.

You can try to “sell” your spot in the line to somebody else, I guess.

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The net cost has actually gone up by $8,250, since the California Clean Fuel Reward rebate of $750 expired as of September 1.

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makes it tough to get profit out of the car when you are charged 9-10% in sales tax.
Good luck!

10

TFS allows 3rd party buyouts

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11

Why not lease it and sell it after so you don’t pay sales tax?

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12

That’s why I was asking if I can reclaim the sales tax on a new vehicle if I sell it within 10 days in California.

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I believe the 10 day rule only applies in a lease transaction, when the lessee buys the leased car from the lessor, and then resells it within 10 days. I do not believe the 10 day rule applies when you are buying a new car.

14

Its still doing quiet well at the auction

15

Thanks, can you share some numbers?

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MMR is around 61k

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CVRP and CVAP are still funded for those who have reservations, if it meets the MSRP requirement.

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