I have a bit of a time-sensitive matter to deal with today in regards to a hybrid purchase. I have a car on-hold to be picked up January 2nd. The guy who is selling me the car wants me to take possession today. After informing him of the tax disadvantage of doing so (i.e. the 2006 tax credit), he has checked and said that they can post the date of sale as January 2nd.

My question is for those of you who have purchased hybrids in the past and have claimed your deductions, what paperwork have you submitted along with your taxes showing date of sale? Does the dealership have to send something confirming that date?

Your help is greatly appreciated!!!

Jeff

The dealership does not send any paperwork to the IRS-- only you do.
So, if the dealership dates the paperwork (registration, sales contract) as January, you should have all the proof you need for the IRS.

If he says he can post date it to jan 2nd then why can't you pick it up on Jan2nd? Maybe you could just go there and put jan 1st as the date on all papers you sign and make sure they do the same.

Not sure if thats dishonest or what, but without knowing why he needs it signed for its hard to say.

Is the dealer trying to pull a scam or something?

My hydroponics experiment

You ever notice how hard it is to lip read cartoon characters?
"Crazy is what the sane call Delta Flyer"

Seems fishy to me. If it were me, and I didn't want the car until Jan 2nd, I'd wait.

I can't imagine that the car could be "sold" on two different dates. Also what about insurance? If it gets smashed up before the 2nd, who's car is it? Yours or theirs?

Are they saying you are driving thier car around for two days, and then it will not become yours until Jan 2nd? If it's not yours until the 2nd, then you will not have to pay for it until the 2nd, right?

How would you report it to the state? When would be the first day it was "yours"?

If I'm wrong about this, someone please correct me.

Eric Powers

MHG Organizer - www.MadisonHybridGroup.com
Hybridfest 2008 - A Hybrid Electric Car Show and More! www.hybridfest.com
Madison, WI July 19 & 20, 2008

Also, one semi legit thing you can do if he must have it off his lot is ask him to allow you to test drive it until the second at which time you will sign for it.

My hydroponics experiment

You ever notice how hard it is to lip read cartoon characters?
"Crazy is what the sane call Delta Flyer"

You may be over worrying this. Insurance carriers give grace periods, assuming you currently have insurance. The paperwork is the thing-- it controls. I suspect a salesperson just wants credit for the sale today.

It's my guess it's two things - the sales guy's bonus and the inventory tax issue.

The insurance matter is also a very good point. I guess the other question I'd have is why instead of pre-dating it to Jan 2, post-date it to Dec. 31st?

I would say that sounds pretty fishy. There are plenty of folks here on the boards that have gotten their dealerships to wait. Personally, I would not want to risk the tax credit and post date everything. Have you asked him why?

Support the Troops - Drive a Hybrid!

Thank you all for your help with this. I have decided to wait until Monday to get the car. I am not about to risk this, and I don't appreciate this turning into an 11th-hour game. The sales guy has been informed, and I'm picking the car up at Noon on Monday.

I'm looking forward to joining y'all in hybrid ownership.

Jeff

And make SURE all paperwork has a 2006 date. As far as tax filing, it is the usual "honor system" - until such time you may be audited - and that is when you need the documentation that you TOOK POSESSION in 2006.

Replaced my poor, beloved 2005 with a 2007 when a tree fell on it.