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Originally Posted by guvmint_cheese
Howdy,
My beloved Geo Prizm has gone to the caryard in the sky, which means I'm going for a 2006 Civic Hybrid.  There's a dealer here that has one coming in in the next few weeks. I'm willing to wait until January 1st to pick it up to take advantage of the tax credit.
Having said that I'm having a difficult time finding anything official that says that if I purchase a hybrid say tomorrow, and I pick it up after January 1st, that I'd qualify for the tax credit. Does the transaction officially take place on the day I drive it off the lot or when I sign the paperwork? Where can I find something that confirms that the transaction is based on the day of drive-off? I've read about folks who are doing this, but I'm hesitant to gamble with that sum of cash based on hearsay.
Your help would be greatly appreciated,
Jeff |
The law says that the vehicle must be "put in service" after January 1st 2006. That may be open to interpretation, but most people would say it means when you drove it off the lot.
The way I see it (and I'm no tax attorney) the only documentation the IRS can see and trust is the vehicle registration date. If your dealer registers it in your name with the DMV after Jan. 1 I think you'll be okay with the credit.
I asked one dealer about giving a large deposit, or even paying in full for the car when it arrives, and having them hold it for me until January. He said they would not do it. They must report the sale to Honda and perform the registration at the same time. If they delay reporting the sale to Honda it means they will suffer on their next allocation of vehicles. It may also have a negative impact on the dealer himself when he gets his year-end bonus.