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Infrastructure Bill passed. I don’t think this is good.

whitex

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Oh, I get it, but just don't feel it is a major consideration for people considering a premium vehicle like a Porche. If price/performance were the major consideration we'd all be driving Tesla's ;-)
So what you're saying is you found out during delivery that the dealer added a $7,500 "salesperson tip", you'd just wave your hand and pay anyways?
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Bella

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So what you're saying is you found out during delivery that the dealer added a $7,500 "salesperson tip", you'd just wave your hand and pay anyways?
There is a difference between a Dealer adding $7500 and the Govt making a change to the current Law. I don’t think anyone on this forum is cancelling their order due to the EV Credit disappearing. When you’re spending well over $100k for a Car price is not the key consideration.
 

whitex

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Much as I hate to admit it, someone buying a $120k car is much more likely to go ahead and do it anyways because they can afford it than someone buying a $50k Chevy. I would imagine as a whole, $7500 is a way bigger incentive on a $50k car than a premium car like a Taycan. I'm surprised some are missing this point.
I think what you might be missing is that ICE to EV switch is not exactly the same as going up in price in your ICE choices. For example Tesla discovered long ago, that while they were selling $100K Model S's only (before Model 3/Y's) the number one brand from which people were switching from was not Porsche, or BMW, but Toyota! A large pool of people stretched their budgets to more than twice the next most expensive car they ever owned to get into a Model S and incentives do help when one is stretching. For others the rebate is a risk mitigation, help offset the risk of going with a new technology (that was the primary reason I bought my first Tesla, without it I am almost certain I would not have bought the first, or the 3 more Teslas I bought since). A lot of people think that if you can afford a $100K+ car, you are just rich and never look at prices, just sign checks which come from some virtually unlimited funds account. However, that is not at all true. I've known a few people whose net worth was in the millions who carefully watched every dollar they spent, used coupons, and waited for sales even when buying $100K+ cars. The truth is, unless you are a trust fund baby or a high end celebrity, if you can afford $100K+ cars you probably didn't get to this financial capability by being careless with money.
 

Jhenson29

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gnop1950

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So what you're saying is you found out during delivery that the dealer added a $7,500 "salesperson tip", you'd just wave your hand and pay anyways?
The MSRP was from Porsche, which I saw as soon as I completed my initial configuration prior to contacting the dealer, so I'm not sure how you get a "salesperson tip" out of that. I doubt Porsche priced the Taycan counting on a tax incentive.

A market markup, which appears to be happening in lots of places on lots of cars, would be closer to a "salesperson/dealer tip". Fortunately, my dealer, the same group I've bought every car in the last 20 years from, isn't doing that on the Taycan (except for adding a $995 window tint as part of the dealer prep).

P.S. I should say on my Taycan order, for all I know they are doing markups on non-local or non-repeat customers.
 
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whitex

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Would you agree that lower income people are incentivized more on cheaper cars than rich people on more expensive cars? I think this is the crux of the issue, yes?
Depends on what the goal of the incentive is. If the goal is to incentivize cheap, existing technology EV's, then yes, limit it. Innovation such as longer range, more efficient cars, or longer lasting cars, that usually costs money and the first products of new technologies are more expensive and come at a higher risk. If you want incentivize that, you don't cap the incentives at min 40KWh battery and max price of $55K as that could result in a flood of old tech EV's, such as 40KW, 120mile rated range vehicles, which could result in people being completely turned off by EVs, not use them, so the infrastructure will not expand (or expand slow charging only since majority of EV's will be the incentivized ones not be capable of 250KW charging for example), etc.
 
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whitex

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The MSRP was from Porsche, which I saw as soon as I completed my initial configuration prior to contacting the dealer, so I'm not sure how you get a "salesperson tip" out of that. I doubt Porsche priced the Taycan counting on a tax incentive.
Simple, imagine you configured and ordered your Taycan earlier this year, and you know you will be paying at least $7,500 in taxes so you included the incentive in your plan. By the time the car is delivered, the inventive is gone, so it's now $7,500 more than you planned to spend. Whether via an added "salesperson tip" or removed incentive, the end result is the same, your price has gone up by $7,500.
 

gnop1950

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Simple, imagine you configured and ordered your Taycan earlier this year, and you know you will be paying at least $7,500 in taxes so you included the incentive in your plan. By the time the car is delivered, the inventive is gone, so it's now $7,500 more than you planned to spend. Whether via an added "salesperson tip" or removed incentive, the end result is the same, your price has gone up by $7,500.
I still don't get how that is a salesperson/dealer incentive. But I'd never factor in something like that, something I know could change. I was already aware that the Tax incentive for Teslas was gone and was actually surprised there was any tax incentive for a luxury EV. I always pay cash for my cars and leave the taxes to my CPA. This is especially true for something I want, but don't really need.

I ordered my Taycan in late September with an original delivery date in March 2022, now extended to the first week in April. If there happened to be a tax incentive for 2022 that would have been a pleasant surprise, but not something I was counting on nor was it any part of my initial, affordability, calculations when buying the car.
 
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Jhenson29

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I still don't get how that is a salesperson/dealer incentive.
That’s not the point. The point is that it’s a $7500 change in price in either case.

Edit: and your ignorance of the credit is irrelevant to the people that are expecting it.
 

plamichigan

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[QUOTE: PLA Michigan said:]
That "infrastructure" bill...


A. Is not the same as the huge expenditure bill, which at various times and iterations had increases in the purchase tax credit, and limits on the vehicles that it could be used upon.

B. Has $2.5 billion in direct grants for chargers and fueling stations (not just "EV chargers" as the press keeps saying).

C. Also has other subsidies for, e.g. commercial vehicles and other "infrastructure."

Be sure to read the actual law (if signed). Most of the information I have seen in the press on this comes from a White House fact sheet months old and before any debate and amendments.

PLA[/QUOTE]
 

whitex

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I still don't get how that is a salesperson/dealer incentive. But I'd never factor in something like that, something I know could change. I was already aware that the Tax incentive for Teslas was gone and was actually surprised there was any tax incentive for a luxury EV. I always pay cash for my cars and leave the taxes to my CPA. This is especially true for something I want, but don't really need.

I ordered my Taycan in late September with an original delivery date in March 2022, now extended to the first week in April. If there happened to be a tax incentive for 2022 that would have been a pleasant surprise, but not something I was counting on nor was it any part of my initial calculations when buying the car.
Ok, so let's go with your "I never factor in something like that (taxes)". Imagine between the time you ordered the car and the time you got it, the sales tax increased by 10%, so it will cost you an extra 10% of MSRP to drive off the lot. You might not care, but many people would.
 

plamichigan

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The bill that has passed HR 3684 does provide a great deal of funds for charging infrastructure, battery second life issues, EV adoption studies etc. I don't believe this bill provides any changes to the EV credits. That is in the second bill not passed as of yet.
See my separate post. Most press stories appear to be quoting a White House fact sheet, not the actual bill.

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gnop1950

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Ok, so let's go with your "I never factor in something like that (taxes)". Imagine between the time you ordered the car and the time you got it, the sales tax increased by 10%, so it will cost you an extra 10% of MSRP to drive off the lot. You might not care, but many people would.
Maybe it is a generational thing. The only thing I've ever bought on credit is my home. Everything else I pay for upfront. I always assume the worst-case scenario. So I would always assume a credit may not be available or there may be a tax increase. If any of those would be a show stopper for me I would not make the purchase. My out-the-door, license/tax/insurance, current estimate is about $180k so I set aside $200k. If my final price were to exceed that I'd have to reevaluate.

I understand that not everyone may feel the same, but am puzzled that for cars in this price range $7500 would be a major consideration. Obviously, for me, it isn't.

For me, If $7500 were a deal-breaker, I'd would not have placed an order. I guess it is just a difference in perspective. My son would have preferred I order one of the new Corvette Z06's (it looks like it would have been less expensive), but I'm not a Corvette fan, wanted an EV, and have always wanted a Porsche.

Bottom line, I'm excited about my new car, and it would take something pretty significant for me to cancel, postpone my order :)
 

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Thinking something doesn’t make it true.

You are right I stand corrected. Out of hundreds of cars on order on this Forum we have at least one documented person saying they cancelled. I should have said 90% of the people on this Forum purchasing a new Car will not cancel due to the EV Credit going away.
 
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Maybe it is a generational thing. The only thing I've ever bought on credit is my home. Everything else I pay for upfront. I always assume the worst-case scenario. So I would always assume a credit may not be available or there may be a tax increase. If any of those would be a show stopper for me I would not make the purchase. My out-the-door, license/tax/insurance, current estimate is about $180k so I set aside $200k. If my final price were to exceed that I'd have to reevaluate.

I understand that not everyone may feel the same, but am puzzled that for cars in this price range $7500 would be a major consideration. Obviously, for me, it isn't.

For me, If $7500 were a deal-breaker, I'd would not have placed an order. I guess it is just a difference in perspective. My son would have preferred I order one of the new Corvette Z06's (it looks like it would have been less expensive), but I'm not a Corvette fan, wanted an EV, and have always wanted a Porsche.

Bottom line, I'm excited about my new car, and it would take something pretty significant for me to cancel, postpone my order :)

I love when folks seemingly boastfully highlight that they pay cash when interest rates are at an all time low. If you were to leverage credit by borrowing 90% of the funds to purchase your Taycan and placing the “unused cash” into the simplest index fund - let’s say an S&P tracking ETF - you would likely net much higher gains over the duration of that financing term. Further, it would be smart to stretch the term to as long as the bank will allow for a sub 3% rate - perhaps 84 months at your local CU.

Credit is an important building block of wealth accumulation and should be leveraged as much as it makes sense. Currently, it makes sense. Further, no matter how “wealthy” we seemingly are, many of us are that way because we take advantage of free money. I will take $7500 in exchange for something I was going to buy anyway. That’s a next Omega or part of a great family trip. I wish folks would stop this cash thing when the current rates vs inflation screams leverage debt as much as possible to build wealth.
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