Volt Dealers Scamming Tax Credit

[TheSeer]

Here's an interesting article that says some of the Chevrolet dealers have a scam going with the Chevy Volt. They buy the car for themselves, take the $7,500 plug-in tax credit for themselves, then sell the car as "used". But, the used price is only a few dollars less than full sticker price for new. The consumer then is unable to claim the tax credit. Some Volt dealers take tax credit themselves - Business - Autos - msnbc.com

[hotboxn]

Wow, interesting find!

[Swankins]

You should read more into it, it's a Kia Dealership and some unnamed car dealers scamming customers.. not "some Chevrolet dealer(s)".

[TwoZs]

I'm not surpirsed.

[TheSeer]

Originally Posted by Swankins

...it's a Kia Dealership and some unnamed car dealers scamming customers.. not "some Chevrolet dealer(s)".

Here's another article that says "While most of the dealerships offering "used" Chevy Volts for sale are Chevy dealers, I also found other manufacturers selling Volts with low mileage as "used" cars. A Kia dealership in California that I contacted seemed to suspect that they were doing something a bit underhanded when I called them to inquire about a "used" Volt for sale with only 30 miles on it...." Are GM Dealerships Gaming Chevy Volt Tax Credit? | National Legal and Policy Center
Some instances may be legit dealer-dealer sales to regions where Volts are not for sale yet. It will be interesting to see how this sorts out. In the mean time, the moral of the story is to be careful if any of us decide to purchase a Volt, and are factoring the tax credit in to the decision making process.

[Darth]

Another thing to keep in mind is the tax credit isn't something you just "get." Meaning you don't buy a Volt and when you file your taxes, you automatically get $7500. What happens is if the government says, "you owe $7500" then you can clim the credit and not owe any money. If they say you owe $4000, then you can claim the tax credit, you don't pay any money, but you don't get the extra $3500 back.

Also, if these dealers are doing this, I hope something bad happens to them.

[CrzyKly]

talk about Stealerships...

[Swankins]

@Darth: No matter how you slice it, you're still getting $7500 back. Money is money.

[Scotty001]

Originally Posted by Darth

Another thing to keep in mind is the tax credit isn't something you just "get." Meaning you don't buy a Volt and when you file your taxes, you automatically get $7500. What happens is if the government says, "you owe $7500" then you can clim the credit and not owe any money. If they say you owe $4000, then you can claim the tax credit, you don't pay any money, but you don't get the extra $3500 back.

Not entirely true. Depends on how much in taxes you paid.. It is a matter of - if the credit is more than you paid in taxes, then you will not get the extra back..

Say you paid 32K in fed taxes over the year and you worked it out that you owed nothing and the government owed you nothing. Really the perfect way to work it. But then you bought a Volt or other plug in and got a 7500.00 tax credit, you would get a 7500 refund.. It is a credit and just doesn't come off the top (a deduction).. Tis why the government is so stingy with such things...

Their are some other variables involved. But a simplistic example...