Tesla is selling its Fleet Vehicles!

Tesla is selling its Fleet Vehicles!


– In related news, Tesla’s also
releasing the fleet vehicles for sale to help deliveries
before the tax credit phase-out. You don’t remember, or
haven’t heard this before, the federal tax credit in the US is $7500. That you can take as a
deduction on your taxes in the following year, which would be next year, and it’s up to $7500 if
you qualify for that. If you make enough money, and
with that it will drop down to half of that amount,
$3750, on January 1st, which is only a couple
weeks away from now. Tesla, in an effort to try
and get as many vehicles in people’s hands before this
happens, there’s a lot of data previously about how this will hurt EV adoption and things like that. There’s also a lot of
legislative things happening, but we’re in kind of a lame-duck
session of Congress right now, where a new group is coming
to power and it’s just hard to figure out what’s gonna happen. Wouldn’t count on any of
those things right now. They’re actually selling
all of the fleet vehicles. These are the loaners, display
cars, test-drive cars, etc. The idea is that they will
move Heaven and Earth, as I’ve said, to get you this
car before December 31st. A friend of mine actually
just asked me about this, and he wasn’t aware. You actually have to take delivery of the vehicle before the end of the year. It’s not enough to simply
submit your order, put down the additional $2500 deposit,
or whatever you put down. You actually have to take
ownership of the vehicle. The title has to be issued
with your name on it before the end of the year, otherwise you don’t qualify for that tax credit. Let me just talk about
this one second, because there’s so much confusion around this, and Tesla I think is a little bit at fault. When you get a $7500 tax credit,
or 3750 starting next year, you don’t get to deduct that
from the price of the car. If the car costs you $15000, you still need to come up with $15000 for the car. Whether that’s a loan,
whether you pay cash, however you do it, you still have to
bear the brunt, or the burden of all of that loan or all
of that bill that you owe. That $7500, well it is
good and it is great. I am taking advantage
of it for my taxes for next year for 2018, and
I’m thrilled about it. It’s not something that is
actually reducing the loan that I would have to pay for my
car, so keep that in mind. It’s not like you buy the car and then they give you ten grand. It’s like you buy the car,
and then next year if you pay taxes like a W-2 employee,
like a normal employee, you’ll potentially get
that money back, but then if you wanted it to lower
your monthly payments you would have to
refinance the loan or maybe put that in an account
that it gets drawn from. It’s one of those thing
where it’s not just a one-to-one discount on the car. It is more complicated than that. In the end, it comes out
to be money off the car, but from a monthly cash standpoint, it doesn’t always work out that way. I hope if you guys are
on the fence at all, you realize now is the time, because we don’t know what’s gonna
happen with the tax credit. If there’s gonna be any changes to it with new legislative stuff going on. It’s really up in the air, so if you’re looking to do it now’s the time. I would encourage you to consider a used Model S versus a new Model 3. Model 3 obviously gives you
all the bells and whistles, but will actually be
quite a bit more expensive than a used Model S depending
on what options you want. Considering your family’s
situation, considering your financial situation,
all of those things and if you’re waiting it off now is the time. I wish you all the best of
luck in this holiday season. Trying to figure that out. I hope what this means for
Tesla is another great fourth quarter here, because
that would be really big.

About the Author: Michael Flood

34 Comments

  1. Thanks for explaining it well. I work for a SoCal dealer and some people don’t understand how the tax credit on our EV/Plug Ins doesn’t knock down the price of the vehicle directly

  2. Title is misleading. You only talked about the tax credit, not fleet sales. And then you go on to "encourage" people to consider a used Model S, which isn't even eligible for the credit!

  3. I have a co-worker who reserved in January, configured/deposited in July, paid in full in October, and has STILL not received his car yet. The worst part is that they have confirmed that it is in an off-site storage location near the delivery center, but it has not been prepped yet. The logistics on the east coast are absolutely terrible and I can't believe they are cutting it this close to the wire. I'm pretty worried they're not going to get it to him by December 31st so he's going to get screwed on the taxes.

  4. Ben, if you could release a video soon (hopefully before Christmas. Addressing which older Tesla Model S year are more reliable than others or less prone to part failures. I would highly appreciate this beard on the fact that I’m looking around for one and weighing the option of a Model 3 since the $7,500 ends this month. Thanks +Teslanomics with Ben Sullins

  5. They are probably are doing it because they know they will have to drop their price if they want public to continue buying their vehicle.

  6. I’d be happy if they would just deliver the model 3’s that folks already ordered in October/November. It’s looking shakey…

  7. You will only get this tax credit if you have a tax liability such as owned a business, owned money to the government, or a 1099 self employed

  8. True, FIT does not reduce the purchase price of the car. It only allows you to get a credit against your Fed tax obligation. Also true as you state that it does not affect any loan terms. Funny then that Tesla actually shows the tax credit as a reduction in your loan payment on their order page. Another “truth in advertising” violation. Just like any “savings” on fuel over the next 10 years is also taken off the actual purchase price. Fuel savings does nothing to affect your out of pocket cost or your loan/lease payment. The FTC should put a stop to these misleading claims.

  9. A better term would have been "inventory" vehicles. As someone who bought an inventory Model S in May, I would encourage people to take advantage of the opportunity if you're in the market. A Tesla with only a few thousand miles on the odometer still has 300,000+ miles of life. They come with a full warranty and usually have a pretty good discount. To top things off, most of the demo cars and loaners are higher-end models with upgrades that you wouldn't normally have sprung for but the discount is so good that the upgrades are practically free 😉

    In my case I did a ton of research and had a great sales advisor who was able to find a car that had all the features I was looking for. I purchased a Model S 100D with 5,000 miles at a discount of $12,000. Being an inventory car I was the first owner of record so I qualify for $7,500 in federal tax credits and $2,500 in a state rebate. All in all I'm very happy with going this route and would have gotten much less car if I had configured new…

  10. I’ve tried to watch your videos a handful of times, but then you lose me every time you say “Tezzla.” It’s like nails on a chalkboard…

  11. Looking at 95,000 deliveries for Q4 on 67,000 M3 with another 28,000 S+X
    5000/wk avg production is 65,000 for the quarter with another 8000 on route at the end of Q3. Compressed delivery times as well as throwing everything into pre Dec 31st sales….record qtr coming up.

  12. 3:32 Disagree on a used Model S than a new Model 3. Consumer Reports has lowered the reliability score of Model S on 2018 due to many issues, one of them being the suspension, Tesla is ranked 27th out of 29 auto makers, with 1st being the most reliable. Model 3 has lower complexity to manufacture, newer battery pack. Why risk on something low in the ranking when that's meant to last for years?

  13. This is so dumb! We need this federal incentives. I heard that Norway has the most electric vehicles and it’s because the government has invested in infrastructure and incentives

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