[Speedog19]

From Southern California here. Really locked in on a base Honda Clarity after extensive research between 4 hybrid plug-ins.

Quick questions here:

What’s a reasonable and fair out the door price on the MSRP to own? Not including sales tax and registration. Just purely MSRP sales price to negotiate it down to?

CA gives a tax rebate of $1,500 which is easy enough as to how this works.

With federal it’s a full $7,500 as a tax “incentive” and not a rebate. Anyone know how this exactly works with the numbers when it comes to tax filing season? Some folks are posting it’s $7,500 off the MSRP but an incentive vs a rebate are completety two different things.

Thanks for all the help in negotiating.

 

[Speedog19]

So far received two quotes from two dealerships:

Base MSRP Sticker is typically $34,400

1. $30,950 Honda, Corona

2. $30,250 Honda Riverside. But they have like 5 line items such as paint protection, theft protection the msrp jumps to $32,200. I will see if I the dealer is willing to remove these added unnecessary features for me.

Wondering if anyone got a base Clarity for an MSRP under $30,000 and where in So Cal?

 

[Claire Greene]

Here's a thread on Clarity prices http://www.clarityforum.com/forum/201-honda-clarity-pricing-dealers-purchasing-orders/91-honda-clarity-plug-pricing-2.html

 

[Claire Greene]

seems like you did your homework and the quotes you got are good quotes for Socal. you have the right idea about incentive vs rebate. At the end of the year if you owe $6500 in federal taxes you don't have to pay any taxes the $7500 incentive will cover your owed taxes. But if you owe $8500 in taxes you will have to write a check for $1000 to satisfy your tax liability.

 

[Speedog19]

Thank you Claire for the explanation and the pricing link!

 

[HondaFan]

Tax credit

Just to clarify...

The Federal incentive is based on what you owe in total on the relevant year's tax return. Some have been confusing this figure with what balance is owed with your return.

For example, if your total tax bill is $8000 but you have had $8000 withheld from paychecks over the year, you will get $7500 back in a refund from IRS. In other words, disregard what you have already paid and look to line 15 on your 1040. If that figure is $7500 or more, you will get the full benefit of the credit.

 

[4sallypat]

In So Cal, lease tax credit ($7600) is great for someone who wants an immediate discount off the sticker and does not pay that much in Federal taxes or someone who does not want to wait till the end of the year to recoup the credit.

I just leased my base Clarity for $10,600 off MSRP ($7600 Honda lease incentive + $500 state employee + $2500 dealer discount).

Lease monthly is only $310 including 9.5% monthly tax.

Had to wait till 1/1/19 to sign the contract because of the increased SCE post sales rebate ($1000).
Add the $1500 CVRP and I have a super hot deal around $20K for a new car.

I plan on buying out the car at the end of the lease ($14K)....

 

[Kg350]

I'm debating if I should sell my 2018 Prius prime that I bought last year. I'm about to do my taxes and claim the $4502. But I want an EV with longer range so I'm considering selling my Prime in a month or two and grab a Clarity.

Does anyone know if I'm able to sell my Prime without any issues? I know the California state credit I have to prorate the amount and give it back. What about the IRS tax credit that I will be receiving for my 2018 purchase?

I also plan to claim the $7,500 tax credit in 2020 if I end up buying a Clarity.

Any input would be great!

 

[DucRider]

I'm debating if I should sell my 2018 Prius prime that I bought last year. I'm about to do my taxes and claim the $4502. But I want an EV with longer range so I'm considering selling my Prime in a month or two and grab a Clarity.

Does anyone know if I'm able to sell my Prime without any issues? I know the California state credit I have to prorate the amount and give it back. What about the IRS tax credit that I will be receiving for my 2018 purchase?

I also plan to claim the $7,500 tax credit in 2020 if I end up buying a Clarity.

Any input would be great!

No requirement to pay back the federal tax credit, and no limit on the number credits you can claim.

 

[Tim66]

Still can't file for the 2019 tax credit. IRS Form 8936 is still in draft form.

Tim

 

[4sallypat]

I'm debating if I should sell my 2018 Prius prime that I bought last year. I'm about to do my taxes and claim the $4502. But I want an EV with longer range so I'm considering selling my Prime in a month or two and grab a Clarity.

Does anyone know if I'm able to sell my Prime without any issues? I know the California state credit I have to prorate the amount and give it back. What about the IRS tax credit that I will be receiving for my 2018 purchase?

I also plan to claim the $7,500 tax credit in 2020 if I end up buying a Clarity.

Any input would be great!

You should lease the Clarity and get the immediate tax credit now by getting $7600 from Honda. Instead of waiting till 2020 to claim the fed credit.

I think this is the last month Honda is offering this - check with your dealer - I heard that the incentive is being cut to $3800 next month because the 2019 are going to start coming in.

 

[Tim66]

You should lease the Clarity and get the immediate tax credit now by getting $7600 from Honda. Instead of waiting till 2020 to claim the fed credit.

I think this is the last month Honda is offering this - check with your dealer - I heard that the incentive is being cut to $3800 next month because the 2019 are going to start coming in.

I believe the credit of $7500 is based on the size of the battery not model year. When Honda reaches 200,000 units of PHEVs (as Tesla has) the credit will start to phase out. I assume you are saying Honda will discount a lease based on the credit not that they will give you the $7500.

"Tesla reached the threshold of 200,000 electric vehicles sold in July, which triggered the phase-out period of the tax credit. All Model S, Model X, and Model 3 vehicles delivered before Dec. 31 will receive the original tax incentive($7500). Other electric car companies will continue to offer the full tax credit into 2019 until they hit the cap."

Tim

 

[4sallypat]

I believe the credit of $7500 is based on the size of the battery not model year. When Honda reaches 200,000 units of PHEVs (as Tesla has) the credit will start to phase out. I assume you are saying Honda will discount a lease based on the credit not that they will give you the $7500.

"Tesla reached the threshold of 200,000 electric vehicles sold in July, which triggered the phase-out period of the tax credit. All Model S, Model X, and Model 3 vehicles delivered before Dec. 31 will receive the original tax incentive($7500). Other electric car companies will continue to offer the full tax credit into 2019 until they hit the cap."

Tim

Yes @Tim66 you are correct, the $7500 federal tax credit will still apply if you finance or buy the Clarity because they have not reached the 200,000 units made.

For those that are leasing, since Honda receives the tax credit (LEASOR) they are cutting the incentive to the LEASEE from $7600 to $3800 for the outgoing 2018 MY Clarity PHEV....

 

[Tim66]

Thanks 4sallypat.

Tim

 

[Kg350]

You should lease the Clarity and get the immediate tax credit now by getting $7600 from Honda. Instead of waiting till 2020 to claim the fed credit.

I think this is the last month Honda is offering this - check with your dealer - I heard that the incentive is being cut to $3800 next month because the 2019 are going to start coming in.

Thanks for the input.

But for my current situation would you happen to know what happens? I'm about to claim my $4,502 from my 2018 prius prime. Would I be able to sell my prius prime to the dealership without any issues? Such as owing back the $4,502 to the IRS because I traded/sold my car to a dealership? That'd be my only concern. Would I have to keep my car for a certain period if I do claim my $4,502 tax credit?

I know I have to give back a prorated amount of my State California tax credit which is roughly $1,000 of the $1,500 I received. (since I've had my prime for 10 months).

 

[DucRider]

Still can't file for the 2019 tax credit. IRS Form 8936 is still in draft form.

Tim

A brave (foolish?) taxpayer could enter the tax credit on Schedule 3, line 54, check box C and designate 8936 as the source. That is where the credit will be entered when the form is released.

It would then be advisable to submit an amended return when with form 8936 when it becomes available.

Unlikely (but not impossible) that an audit would be triggered or processed before the amended return was in the system.