I am Looking to Purchase a Used Prius

Welcome to the site. I hope you really want to buy the car, not the sticker. I think finding a used one will be somewhat difficult as the owners would have to repay the tax deduction on sale and there is a high level of satisfaction with the car. Used ones have held their value well but I don't know how true that is now that the '07's are readily available. Have you considered that a 2007 with fewer options may be found for close to the same price as a used one?

 

I never heard that one has to repay tax credit - do you have a link?

BTW, my 2005 blue is for sale. But I don't have CA HOV stickers as car is in Seattle.

 

<div class='quotetop'>QUOTE(JimN @ Jan 30 2007, 09:22 PM) [snapback]383101[/snapback]</div>

Jim, I am curious about this "repay the tax deduction", are you reffering to the recapture of tax credit. I've looked on the IRS website and can't seem to find anything regarding this issue.

 

After digging through the IRS website I found this link that explains the "Recapture of Credit". It seems that you can't sell or dispose of your clean fuel vehicle within 3yrs when the vehicle was placed in service.

http://www.irs.gov/publications/p535/ch12.html#d0e10610


I know this is a stupid question, but how would the IRS know if you sell/trade your clean air vehicle during the 3yrs. What are your thoughts on this?

 

<div class='quotetop'>QUOTE(jesart @ Jan 30 2007, 11:19 PM) [snapback]383194[/snapback]</div>

For normal individuals - There is no recapture of the tax deduction or the tax credit. Please read excerpts from the same IRS document, as follows:

Recapture of the Deductions
If the property ceases to qualify, you may have to recapture the deduction. You recapture the deduction by including it, or part of it, in your income.

You must recapture the deduction for clean-fuel vehicle property if the property ceases to qualify within 3 years after the date you placed it in service. The property will cease to qualify if it is changed in any of the following ways.

It is modified so that it can no longer be propelled by a clean-burning fuel.

It ceases to be a qualified clean-fuel vehicle property (for example, by failing to meet emissions standards).

It becomes nonqualifying property, defined earlier. (SEE BELOW)

Sales or other dispositions. If you sell or otherwise dispose of the vehicle within 3 years after the date you placed it in service and know or have reason to know that it will be changed in any of the ways described above, you are subject to the recapture rules. In other dispositions (including a disposition by reason of an accident or other casualty), the recapture rules do not apply.


Recapture of the Credit
The electric vehicle credit is subject to recapture if, within 3 years after the date you place the vehicle in service, it ceases to qualify for the electric vehicle credit. You recapture the credit by adding it, or part of it, to your income tax for the year in which the recapture event occurs.

The vehicle will cease to qualify if it is changed in either of the following ways.

It is modified so that it is no longer primarily powered by electricity.

It becomes nonqualifying property, defined earlier. (SEE BELOW)


Sales or other dispositions. If you sell or otherwise dispose of the vehicle within 3 years after the date you placed it in service and know or have reason to know that it will be changed in either of the ways described above, you are subject to the recapture rules. In other dispositions (including a disposition by reason of an accident or other casualty), the recapture rules do not apply.


Nonqualifying property.
This is property used in the following ways.

Predominantly outside the United States.

Predominantly to furnish lodging or in connection with the furnishing of lodging.

By certain tax-exempt organizations.

By governmental units or foreign persons or entities.

 

<div class='quotetop'>QUOTE(John in LB @ Jan 31 2007, 02:41 AM) [snapback]383196[/snapback]</div>

Thanks for the clarification. I thought the "Recapture of Credit" would also apply to normal individuals.

 

<div class='quotetop'>QUOTE(jesart @ Jan 31 2007, 12:03 AM) [snapback]383200[/snapback]</div>

It depends on your definition of what is normal? Are you normal? Am I?....

 

just got my new 07 prius today. i was considering a used one, but decided was not worth it. a ebay seller in s.ca was selling a used 07 package 5 with 5000+ miles for $30,000(not including tax/registration). he claimed a new one would cost around 39k... i looked around elsewhere and ended up getting mine at invoice. with the federal tax credit, i would say definately get a new one if u can get it around invoice price and not having to pay for the mark up.

good luck!

 

<div class='quotetop'>QUOTE(LittleAl @ Jan 30 2007, 09:28 PM) [snapback]383076[/snapback]</div>

Welcome to the group!
I've work ad Disney since the early 80's & a co-worker found a white '05 wiith 20K + miles on it. He said it's on a lot between the city's of Orange and Brea (don't know which one though w/o calling him up). It has nav + smart ignition & they are asking $22K. + (he says it needs new tires ... they're the original Integrities which wore badly ... from our experience.

He didn't buy it because he wanted more for his SUV trade in. PS, it has the HOV stickers.

 

We are also wanting to buy a used Prius. They seem as rare as hen's teeth. Living in Canada, we are prohibited from buying a new one it seems. Unless, there is someone out there who has a new one for sale????

Live on Van. Island, so it would be in the Washington, Oregon area.

Thanks.

LB

 

Just wanted to let you know I was also looking for a used prius w/ the HOV stickers. Yes, they are rare, esp at dealerships (and if they do come up, they're sold off the lot before they even get out of inspection - there was one that was sold within 25 minutes of its trade in), there are more from private parties. I looked on craigslist, autotrader, and cars.com, multiple times each day, for almost a month.

Just bought mine yesterday (perma-smile as we speak). 2005 white 40k miles, nav, bluetooth, smart key, leather, premium tires, and of course stickers. i bought it for $23k. i've looked at others, and I think I got a decent price, given people were selling 06/07 models with 10-20k fewer miles for $25-$28k and I just couldn't justify spending $3k+ for stickers that would (likely) only be good for 3 years (until 2011). FYI, KBB had my car listed at $20,500 or so.

So if you're still looking, I say be patient, there aren't lots out there, but they do come up. I understand the markup on the stickers is huge but keep in mind it is a diminishing investment. IMHO, I wouldn't pay more than $3k more then KBB for the stickers.

Having gone through the entire process, I think I learned a lot, if you have any questions, let me know.