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Toyota Prius, Hybrid Cars, Sedan
#220 of 2152 Re: Is the 2007 Prius elegible for max tax break? [rplumlee]
Sep 10, 2006 (3:20 pm)
It seems the year of the car is irrelevant - IRS states "Toyota hybrid sales" and as of May 2006, they've exceeded 60,000 units.
You can claim the full credit for a "car that has been put into service by the consumer" by September 30th.
After that, the credit will be reduced by half = $1575.
See the Toyota web site under Prius - it's all pretty much spelled out there...
Toyota/Lexus Hybrid sales exceed the 60,000 threshold.
Toyota/Lexus hybrid sales from January 1, 2006 through May 31, 2006 totaled 68,637. As TMS reached the 60,000 cumulative hybrid sales threshold during the 2nd Quarter 2006, credits will therefore be reduced by one-half beginning with vehicles put into service by consumers after September 30, 2006. Please see calendar below for the TMS hybrid tax credit phase out schedule. (this is a graphic)
#221 of 2152 Re: Is the 2007 Prius elegible for max tax break? [rplumlee]
Sep 11, 2006 (10:33 am)
You are smart to avoid relying on verbal assurances from anyone in financial matters. If it isn't in writing, for all practical purposes, it isn't real. Ask the saleman for the source for his assertion. The answer to your question is complicated. For starters, the model year of the vehicle is a non-issue. Both the Toyota Camry Hybrid and the Lexus RX 400h hybrid are 2007 models and are qualified for hybrid tax credits. At the moment, a 2007 model Prius might not qualify but that is only because the IRS certification is done for each year of production. It will undoubtedly be forthcoming prior to your filing of a CY2006 tax return.
So for you, the issue devolves to what the proper definition of "purchase" is. Does "purchase" require only a contract commitment, or does it also require the physical delivery of the vehicle? In IRS IR2006-26, the IRS in providing details regarding the tax credit states: "The tax credit for hybrid vehicles applies to vehicles purchased on or after January 1, 2006....." There is no information contained in the release as to whether a physical delivery is required.
On the other hand, summary I found on Google regarding this issue states as follows regarding qualifying for the 2006 tax credit:
3. "The purchaser must accept delivery of the Hybrid vehicle from the dealer on or after January 1, 2006...."
5. The purchaser must retain appropriate documentation showing the purchase of the vehicle and the date of the delivery of the vehicle.
The above statements would seem to indicate that physical delivery is an essential component of "purchase".
What you should determine is whether your paperwork is completed on Sept 20, or whether there will be additional documentation involved when the vehicle physically arrives.
Since a VIN has been assigned, if you can actually start the registration process now, that might be sufficient documentation to meet the IRS criteria.
IMO, it's worth taking the shot. In the worst case you lose $1575 of the tax credit, but remember that at this late date, the day after you purchase a 2006, it has depreciated at least this much more than the depreciation you incur the day after you purchase the 2007.
#222 of 2152 Re: Is the 2007 Prius elegible for max tax break? [cruising7388]
Sep 11, 2006 (1:14 pm)
Thank you all for your responses. It's hard to say what's right here, but common sense tells me that the 2007 is the best buy. I agree that it is hard to imagine that the 2007 Prius won't qualify for the tax credit.
This is a great forum with a lot of good discussions. I have learned a lot here and am certainly excited owning my own Prius in the near future with or without the full tax credit.
#223 of 2152 CA's DMV fees
Sep 12, 2006 (12:31 pm)
I am curious what CA's DMV fees are for a new car. Buying Prius at MSRP is pretty hard to take, giving dealers additional profit in name of DMV fees would be even harder to swollow. Please advice. May be able to get a Prius this weekend.
I do like how 2007 options are packaged, and like the touring package. Just wondering which package would be sold in CA?
#224 of 2152 Re: CA's DMV fees [ck90211]
Sep 12, 2006 (1:48 pm)
Here is a tabulation for a California purchase of Package 6:
Cash Price 27768.00
Document Prep 45.00
Smog Fee -0-
Sales Tax 2155.21 (Doc Fee is taxable!)
License & Reg 231.00
CA Tire Fee 8.75
California sales tax is a little higher than the national average. It isn't uniform throughout the state. The basic rate is 7 1/4% but different counties piggyback sales tax increments on the basic rate. The sales tax percentage you will incur does not depend on where the vehicle is purchased. It's determined by the county and city in which it is registered. The registration fees which used to be horrendous were reduced when Governor Schwarznegger delivered on an election campaign promise to rescind the hiked registration fees implemented by Grey Davis.
The California Board of Equalization does have a policy regarding trade in values that is infuriating. For example, in the case of the above tabulation, a vehicle was traded in at the value of $7800.00. In some states, this amount is subtracted from the sales price of the new vehicle, reducing the amount of sales tax levied. In this case, it represents a tax increment of $604.50 which would not be paid in a state that permits the new vehicle sales price to be offset by any trade in value. There is no practical way of avoiding this without going through the convoluted process of having the car delivered to an adjacent state and developing a record of operating the vehicle for one year or more outside the state. Of course, the vehicle will have to be registered in some state for that period and the state of choice for this region is Oregon which has a uniquely low vehicle registration fee. Oregon used to be pretty lax with respect to this process but as of late they have started to require some proof of residence in the state. In any event, because it involves a lot of work and hassle, it really isn't cost effective for the sales tax incurred with a Prius. Now if we were talking about a 300,000.00 luxury motor home, the equation would be somewhat different.
There isn't an awful lot of difference between the 2006 and 2007 packages. The base MSRP is fractionally cheaper than 2006, but for 2007, the VSC option is now a required option in every package but No. 1. Also I think for 2007, the Sirius/XM radio function has been included. Other than larger wheels, I don't recall the additional features the touring model offers. I'm not sure that the bigger wheels really accomplishes much particularly if it results in a tire size that is significantly more expensive to renew.
Which packages will be sold in California? I sure wish I had a rabbi somewhere high up in the Toyota food chain that could provide a heads up in this regard. I think it's safe to assume that the touring model(s) will be offered in CA, but I'm not sure that for marketing purposes, CA is just one market. It may break down into sub-markets with a different distribution profile for each one. Frankly, I think it sucks that a customer can't purchase any package of their choice from any dealer in the country, but the demand for this class of vehicle is so powerful that they can call the shots even though it looks wrong from our end. I'm reminded of an exchange I had almost a half century ago with the owner of a business for which I was a purchasing agent. I was cogently explaining why a particular purchasing policy he implemented was costing us money, and he replied: "Son, last year I made over a million dollars and now you're telling me I did it the wrong way...." And that was the end of that conversation.
#225 of 2152 Thanks for DMV fee rundown
Sep 12, 2006 (3:40 pm)
Cruising, once again thanks for quick response. I know about CA's high sales tax, just did not know what was other DMV fees, every state does it differently.
While it's probably too late to get a HOV sticker, what is the procedure of getting one? Do I ask the dealer to file it? Or do I file it? Before getting the plate? Or after getting the plate?
2007's options seem better packaged because CA only gets package 1, 3, 7 and 8. And I think 16" tires may give better handling (but probably at the expense of mileage due to additional friction/weight). But what I really want is factory Sirius/XM. I know it's cheaper after-market, but nothing beats a well integrated system, and the good deals offered with factory systems (I pay $7/month for XM in my Honda Pilot).
#226 of 2152 2007 in before Sept 30, and unfair Toyota allocation to CA
Sep 16, 2006 (4:09 pm)
I was just informed today by a SoCal Toyota dealer that they will get a 2007 Prius #2 in before end of Sept (3-10 days from now). Price out to be almost same as a 2006 #3 but with the extra VSC. Very tempted. So I went on Tooyota's website, did a "Build Your Prius", put in my SoCal zip, and was told in CA that standard Prius comes only in pkg 1, 2, 5 or 6, and touring comes only with pkg 5 (I think). Just for curiosity I inputed a DC (and then NJ) zip, and was able to get touring Prius with a low end package. Looks like Toyota really wants to milk their largest market (CA) for every option dollar it can get. Guess the touring just isn't for me, but I guess Toyota must think there will stil be plenty of Californians with the extra $6K.
#227 of 2152 Bad experience at Kearny Mesa, SoCal
Sep 17, 2006 (5:56 am)
I had read some good reviews about Kearny Mesa dealership in SoCal and therefore decided to get my Prius from there even though I live in Orange County. Well, not a good experience. After a few weeks they called me one day on Friday monring at about 9am saying that my car had arrived and I had 24hrs. Now I'm a physician so to took me a lot of effort to re-schedule my hosptial rounds, out patients and even had to cancel a voluntary lecture I had planned for some senior citizens in an hospital in Anaheim. But when I was half way there to the dealership in San Deigo, about 7hrs later, they called me say that they had made a mistake. It wasn't my car after all! They realized that after 7hours...after I had spoken to the dealer three times on that day after their first call. Personally I think they just gave it to somebody else with total disregard to my time and effort. Wouldn't recommend buying a car from Kearny Mesa toyota.
#228 of 2152 Re: Bad experience at Kearny Mesa, SoCal [wood2318]
Sep 17, 2006 (1:18 pm)
Sorry to hear your experience; and lack of some "make-up" gestures from Kearny Mesa. I too had some bad experience in Puente Hills Toyota, and heard awful stories about Carson's Toyota too. While I was a Power Toyota this morning, getting my name on a 2007 #2 (scheduled to be in before Sept. 30), I saw at least 5 families getting "handled" by a slew of salesman, sales managers, business managers over payments, leases, and more payments again. Truly shocking to see how unprepared these folks were about such big decision, and how dealers just lead them to the slaughter house. It's the same every dealer I have gone to in search of my new Prius (6 total). Anyhow, since you are in SoCal, this FYI maybe helpful to you. Power Toyota has 3 incoming 2007 Silver #2, MSRP, in port and scheduled for dealer lot anytime after the 19th. I was the 2nd with deposit, one more left (as of noon today). I would think a 2007 is going to work out better for you than a 2006, if you are cool with the color and options. Good luck.
#229 of 2152 Prices in Chicago area
Sep 18, 2006 (2:29 pm)
We're thinking of buying a Prius Touring with package #5 (DVD Nav) in the Chicago area. After reading posts on the Internet, there are a lot of people who purchased their Prius under or at MSRP but in different parts of the country. Edmunds.com shows a ridiculously $3000+ above MSRP for this area. What gives?
If anyone has experience with purchasing Priuses in the Chicago area (as I've seen several on the street) please share. It most certainly would help first-time hybrid buyers like us.
Also, what is the deal with the taxes? Would it be good for '07 for the same $3150 amount as in '06 (for the first 60k cars sold)?