Federal tax credit - and will PIP hold value?

In general terms, you can can get a federal tax credit of the lesser of your total tax liability and $2500. Partial credit cannot be carried forward to the next year. Note that this is your tax liability, not what you have to pay or get back when you file your tax form. Alternate minimum tax does not disqualify you from this this credit (not to be confused with a very similar tax credit that expired a couple of years back that WAS subject to AMT). But as Paradox says, consult a tax professional for your particular case.

 

Federal is not limited to California....

 

OP....Im also in NY state, I nearly bought a NON Pip for 170/mt...8k down. Then aug 1st toy offered 3150 off sticker on PiPs. My payment went from 170 to 178/8k down. So i pay 8 dollars more /mt then i would have for a NON Pip.

This is a 3 yr lease. BTW the residual is 17,600....while the NON Pip resid was 15,300 IIRC. I can buy it for that or if the new PiP at the time has increased EV range I will give it back for a new one.

Check to see if the August offers are still on. Its the only reason I even looked at the PiP cause the cost was way more then I was ready to pay.

Dan

 

Will PIP hold it's value? I think so, until the technology is replaced by something better. And that will happen, but when?

 

The used car market is a different market than the new car market. In the used car market, there will be few options for plug-in hybrid vehicles, just like there currently is for the new car market. So IMO, it will hold value better than a non-hybrid or even a hybrid.

 

Mileage is the king in the used car market. Try search how much an used 1999-2005 corolla/camry/civic/accord cost , even with 150k miles on it, they quickly move out of 'craigslist', or 'autotrader.com' as there are lots of buyers who are in need of good mileage. Same with 2001-2005 prius. Based on the current trends, I strongly believe that
PiP will hold its value very well with in 1k/yr loss.

 

Leasing could be a good deal, even for those who could buy the car outright.

At the end of the lease, you have the choice to keep it or not. You can decide based on the value of the used PiP at the time. So heads you win, tails the dealer loses.

Compare the total cost of leasing and buying the residual against the cost if you just bought outright. Whatever the excess cost of the lease is, that's what you're paying to have the option at the end of the lease.

 

It is Oct 25, 2013 (in Calif ;o). Plug in Rebates inquiry:
I researched Ca' $1,500 credit and it seems to still be still in effect, but I wanted ask here:
1) if recent (late 2013) buyers are getting it.
2) How does the CA rebate or credit work? When do you get the cash back? Tax time of following year? Three years later?

Federal $2,500 tax credit:
So as long as your 1040 line 44 "tax" is above $2,500, you claim your $2,500 fed credit and reduce your tax owed by that amount, correct? Is it that simple , or are there variables/twists?

With a dealer quote of $28,088 - $2750 Toyota rebate + $2154 Ca tax + $250 lic & fees* -$2500 Fed -$1500 CA = ≈ $23,742 after all the dust settles (in 6 mos to 3 years??)

Any reason to pass on a Plug in vs an equivalently priced Out The Door priced level 3 or 4 Prius?

I will need to examine if lease 'deals' can save more (if we decide to go new for this Plug in deal). Otherwise we were were planning on putting $9,ooo down on new or (used) Prius. Anyone have any insights on current leasing deals in CA and if they are a better deal even for someone who would never lease normally ;o)
Thanks,
Dave

 

I agree that it should hold it's value well. There is no reason to believe that it shouldn't hold a small premium to whatever a similar Gen3 would sell for.

 

You get the rebate within about 60 days of sending in your rebate form. Its a check for $1,500. And I believe there was a law that just passed that provided more funding. The program says you are eligible to receive this rebate as long as you keep the car for 3 years (buy or lease), if you don't, you're supposed to give the money back.

Yes, it is that simple. Although some people here have brought up AMT considerations.

 

The federal tax credit is as simple as you indicate. You get it even if you are subject to Alternative Minimum Tax, as I did. An earlier, now expired, similar program excluded AMT, so occasionally one gets a clerk at the IRS who is a bit confused and disallows the deduction, but I think after a bit of perseverance, everyone eventually gets the credit.

 

Please remember if you lease you CANNOT claim the $2500 Federal tax credit. However, one of the reasons the Toyota lease incentive is so big right now is that they are basically passing along that $2500 to you.

 

Yes, when leasing you get the incentive up front as a cap-reduction. No waiting, no question if you will get it all.

You need to compare what the lease incentives are in your market. In NY this fall the lease incentive has been a couple of thousand more than the purchase incentive when all was said and done.

 

Hey Zhenya,
Funny, Im reading this thread and noticed you live in Ithaca. What color PIP do you have? I have seen more and more around since buying mine almost a year and a half ago.

 

...sounds like you got it, that is a very good price for CA...last year at this time you had to go back east for that deal and many did.