tax credit for dealer titled Prius

yourefree · 04-04-2006, 01:53 PM

I bought what i thought to be new car from a dealer, it had 49 miles on it. when i read the paperwork a day later i noticed it said the prius was used. this was bought by the dealer to be used as a demo, but they sold it to me as new. I called the dealer and he said that they can transfer the tax credit to me, as they are the dealer. Does anyone know if this is true, it doesn't sound legitimate but I wanted to see if anyone else has encountered this.

I am pushing them to take this back and give me a new one. this is the second Prius I have had, the first had 550 miles on it - i posted about that, they didnt disclose mileage until we had signed the paperwork. The dealer is Grossinger in Chicago, I am considering talking to the papers or other media as well as legal to see where I stand. When I called the salesman this morning he said that my car was new, until i explained what the paperwork said - he is discussing with his manager as we speak.

I have never had so much trouble buying a new car.

sub3marathonman · 04-04-2006, 02:50 PM

I do not think the dealer can take the tax credit, because they bought the car for resale.

I can't imagine why the paperwork would say used. Is it possible that somebody somewhere at the dealership just checked the wrong box? I doubt that the car had previously been sold to a customer, with just 49 miles, but it is possible. You might want to check into that. Otherwise a "demo" is still a "new" car, until it has I believe 7,500 miles, although that number might not be correct and it might differ from state to state.

One alternative if you do keep the car is to claim the credit and work things out with the IRS or the tax court. It certainly would seem that you will have followed at least the spirit of the law. However, this definitely won't work if the car is in fact "used."

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04-04-2006, 01:53 PM	#1
yourefree Join Date: Mar 2006 Posts: 4 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I bought what i thought to be new car from a dealer, it had 49 miles on it. when i read the paperwork a day later i noticed it said the prius was used. this was bought by the dealer to be used as a demo, but they sold it to me as new. I called the dealer and he said that they can transfer the tax credit to me, as they are the dealer. Does anyone know if this is true, it doesn't sound legitimate but I wanted to see if anyone else has encountered this. I am pushing them to take this back and give me a new one. this is the second Prius I have had, the first had 550 miles on it - i posted about that, they didnt disclose mileage until we had signed the paperwork. The dealer is Grossinger in Chicago, I am considering talking to the papers or other media as well as legal to see where I stand. When I called the salesman this morning he said that my car was new, until i explained what the paperwork said - he is discussing with his manager as we speak. I have never had so much trouble buying a new car.

04-04-2006, 02:50 PM	#2
sub3marathonman Senior Member Join Date: Aug 2005 Posts: 209 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	I do not think the dealer can take the tax credit, because they bought the car for resale. I can't imagine why the paperwork would say used. Is it possible that somebody somewhere at the dealership just checked the wrong box? I doubt that the car had previously been sold to a customer, with just 49 miles, but it is possible. You might want to check into that. Otherwise a "demo" is still a "new" car, until it has I believe 7,500 miles, although that number might not be correct and it might differ from state to state. One alternative if you do keep the car is to claim the credit and work things out with the IRS or the tax court. It certainly would seem that you will have followed at least the spirit of the law. However, this definitely won't work if the car is in fact "used."