[Peter D.]

I'm driving an 09 JSW TDI that I purchased new in April. I'm selling because I'm not crazy about the car payment right and I hardly ever drive it (local driving on weekends and commute to NYC by train during the week).

I'm wondering if I can legally qualify for the Federal Tax Credit if I sell it. Any thoughts?

 

[chittychittybangbang]

If you bought the car new, yes, for 2009. The second owner cannot claim it if they buy it used.

 

[5point]

What was the problems with the car, just too exp? You better ask the IRS just incase , I didn't see anything about private sales. I see this though:

"For a taxpayer to claim the credit, the original use of the vehicle must begin with the taxpayer and the vehicle must be acquired for use or lease by the taxpayer and not for resale. Available credit amounts may vary and include a base credit amount based on fuel economy compared to the 2002 model year city fuel economy rating and an additional amount based on the vehicle’s lifetime fuel savings."

 

[chittychittybangbang]

Thanks, I remember seeing it but after reading it again, it explains some stuff: The amount is based on the 2002 model city rating and the lifetime fuel savings. That helps explain the reason why the Golf DSG is $1700 and the Audi A3 w/same exact mpg rating is $1300. However, there was no Audi A3 TDI so I wonder what model they are using as the base rating.

 

[Peter D.]

Thanks for the quick responses.

Based on that information, I feel someone has to be entitled to the tax credit. If the buyer of a used 09 TDI isn't allowed, then I guess the original buyer should be able to.

I wonder how they define 'reseller'. I definitely won't profit and will probably take a sizable financial hit.

I'm selling because the payments are just too high and I barely drive it. If I can't get a price I'm comfortable with, I'll make my wife take it when her Prius wears out. (I drive both cars and there's no comparison. The JSW TDI is superior in every way!)

 

[Peter D.]

I called the IRS, sat on hold forever, but was told that as long as the 'intent' was for me to use the car as a personal vehicle, I am entitled to the federal tax credit.

However, if I were to sell it for what I paid for it or more, I would have to pay an income tax on the tax credit. If I break even or lose money, I can keep the whole tax credit.

There's been no clarification on exactly how long one should own the car.

 

[Mrryan]

I called the IRS, sat on hold forever, but was told that as long as the 'intent' was for me to use the car as a personal vehicle, I am entitled to the federal tax credit.

However, if I were to sell it for what I paid for it or more, I would have to pay an income tax on the tax credit. If I break even or lose money, I can keep the whole tax credit.

There's been no clarification on exactly how long one should own the car.

Very interesting - if you profit on the sale you pay income tax on the tax credit? What if you don't claim it? Even still, you come out ahead. What if you buy Dec 25 and sell Jan 5 2010 and turn a profit!?

 

[Bluemojo]

Interesting that you can lease the car. How are lease rates now?

 

[Peter D.]

I don't think you can claim the tax credit if you lease, seems like it wouldn't be worth it.

I advertised the car on cars.com but have had no takers, just a few tire kickers. But I got a call from some kind of brokerage today. They claim to arrange financing with prospective buyers but I'm not too sure about this. Sounds like a scam somehow. Anyone have experience with this?

Anyway, now after a month to think it over, I've decided I might just keep the car after all. My 3 year old son loves looking through the panoramic sunroof and my wife argues that we need the trunk space.

So, I might do the MFSW retrofit and install foglights, need to collect the right parts and tools first. This site and vwvortex are a great resource.

 

[chittychittybangbang]

I don't know how lease rates are but I'm guessing they are somewhat high due to low residual values. A lease is like paying the depreciation on a car. You can take the credit if you lease.

I would not sell the car to anyone other than a dealer, private party, or auction house. It sounds like a scam where they will probably charge you or the buyer fees up the wahzoo. Someone is getting ripped off, I can guarantee that - if not you then the buyer (probably with high interest rates).