2006 tax credit and delivery times

The actual financial transaction has to take place in 2006- so you'd have to wait to buy it till January to get that nice credit, otherwise you'll be stuck with the not-as-nice deduction.

I can tell you now that they will be pissed off at you if you drag your feet and will probably sell it to someone else if you drag your feet for too long (my guess: a week is all they'll give you)

The dealer I went through got the list of cars once it hit port and was allocated to them- so your car may be on a truck on its way to your dealer right now.

 

Most salesmen don't know Dick. My huge local Toy dlr tonight said I will wait until feb-april for an 06. Then I told him he'll be discounting 05s in Jan when people want the new&improved 06s.

Nothing worse than car dealer in in a seller's market.

Try paying everything but $100. and let them store it 6 weeks and tell them you'll be there 01/02/06 with a C-note and a hangover to pick it up.

 

The transaction takes place when you give them the money and they give you the car.
Until the transaction is completed there isn't really a sale and they have to worry that you might back out (as you've indicated a willingness to do).
You can't expect to give them the money and have them hold the car and hope you won't ask for your money back before the sale is complete.

Buy the car or pass on it.
Don't jerk the dealer around unless you are a jerk.

 

It's worth a shot.
In business, "fair" is whatever both sides agree to.
Good luck. I hope it works for you.

 

My dealer informs me that "my" Prius is presently being built in Japan (what a nice thought). Black Package #8. He says it will be on the lot by the first part of December (when I can visit it if I want). I've been clear I won't accept delivery ("do the paperwork") until Jan. 1 -- he says he'll designate it as "sold" to Toyota, but we won't seal the deal until Jan. 1. No deposit or anything! If he's truthful and follows through with the deal, I'll be very impressed. (MSRP + freight charge + floor/cargo mats).

I'm in Eugene, Oregon, and am seeing many,many Prii on the road just in the last month. Whereas in Salem, where I work, there are hardly any. "People's Republic of Eugene" is right.

 

It wouldn't hurt to give him a deposit and get the deal written down on paper.
my 2p

 

When I did the math for my situation, it was better to get the '05 because Alternative Minimum Tax wipes out the tax credit, but doesn't affect the tax deduction. If you are close to the AMT limits, which affect more and more taxpayers each year, you might want to work the numbers for yourself.

See this thread:
http://priuschat.com/Need-05-vs-06-Purchas...ice-t12717.html

 

Does anyone know for sure whether an '05 bought in '06 is or is not actually eligible for the 2006 tax credit? I had heard from my dealer that it must be an '06 to be eligible for the credit.

If a NEW '05 would qualify, has anyone had luck getting a dealership to hold a vehicle until '06. We have a 2005 on its way and have to make our decision before it arrives (in the next 4 days). The dealership says that they would have no problem letting us back out on the '05 and putting us on the "list" for the '06's. They said that we would probably get the '06 in late Jan, early Feb 2006.

My wife and I are stymied about the whole matter. On one hand we want our car NOW, but it seems prudent to wait until 2006 to get the rebate.

I'm sure others who are in the know have had to make this decision. If one of you has gone through the pro's/con's about this issue could you let us know what the issues were and what resolution you came up with.

Thanks in advance........

................Rocky Willson

 

Model year is not relevant inre the tax credit.
An '05 Prius purchased in 2006 will qualify for the credit.
Note: the credit will not reduce your taxes below your AMT (alternate minimum tax).
Good luck.

 

Are saying the credit is exempt from determining to use AMT? Where did you come up with that?

 

I think he's saying that if you pay AMT, you won't qualify for the credit at all, which is true as the tax laws currently stand as of today. Everything that I've read about this tax credit, and that I know to be true about the Qualified Electric Vehicle Credit because I've gone through the tax forms, tells me that the AMT amount is what you'll pay.

Check lines 17, 18, and 19 of Form 8834 to see what I mean:

http://www.irs.gov/pub/irs-pdf/f8834.pdf

If your minimum tax (line 18) is greater than or equal to your regular tax (line 17) you get zero credit.

If your minimum tax is $100 less than your regular tax, i.e. you just barely avoided AMT, then your credit is capped at $100.

 

Yep. What you have said is correct.
Thanks for elaborating. B)

 

By the way.
There is some pretty good information and links about the tax credit and AMT in the Toyota Prius FAQ.