So, my car is on the way from the factory still, and may not make it here before the end of the month. I hope it will, but have been told that it might not.

I am using a Captial One blank check to fund my loan, and the offer I have via them is a good one, and the check expires on the 24th of this month, so I have asked if I can come down on the 24th, car there or not, and make the payment official (only have deposit down right now) so that I can def take advantage of this loan without having to apply and send in docs again..

If I do this (or even if I didn't), can I just claim that I bought the car this month when I do taxes?

Thanks,
limey

 

I think the tax credit is based on your registration, not the loan....

At least you will get $525, and it looks like you are eligable for an additional $1,500 from the state.

http://www.oregon.gov/ENERGY/TRANS/hybridcr.shtml

 

According to the IRS press release, the amount of the tax credit is determined by the "date of purchase." The "placed in service date" determines in what tax year you claim the credit. The example they give is buying a Prius on Sept. 30, 2006 (the day before the full $3,150 tax credit was cut in half) but not "taking possession" (their words) of the car until Feburary 2007. The buyer, according to the IRS, would be entitled to the full tax credit, but would have to claim it for the 2007 tax year (the filing deadline for which was April 15, 2008). What the IRS doesn't really explain is what they mean by "purchase." I would think that the signing of the bill of sale and the funding of the purchase (either with cash or with a loan) would qualify. But I'm not a tax lawyer, or an accountant, or a bureaucrat . . .

 

Turns out the dealer finance dept wouldn't let me pay before the car was delivered, so it doesn't matter anymore I suppose. Just hope that it comes in before the end of the month!

 

It's a moot point now, and I'm not sure about the specifics of the Cap One contract, but I do know that most lenders that cut 'blank checks' expire the check from their side the day after the expiration date. In other words, if the stated expiration is on the 24th, they must have the check back into their system no later than the 24th. Issuing it to the payee on the 24th is not good enough, nor is the payee depositing it on the 24th good enough.

I learned this the hard way with a similar style HELOC check I wrote a contractor a few months ago. Fortunately there were no 'bounced check' fees involved...he called to validate funding and they told him the check had expired...and in turn the bank's fraud department called me to validate that I had written it to him. Within a couple of days I had a fresh check to clear the whole mess up.

If I were in the situation again, I would call and ask for a new check if I were within 10 days of expiration just to play it safe.

 

Hey all - well the day after it expired I applied again and was approved for far more and at a slightly lower rate

Better than that though... is that I picked up the car today!!! YES!! So I got the tax credit I wanted, and as an extra special bonus, Honda picked up my financing at HALF of what the capital one check was for. Dealer was super nice, was in and out in just under an hour... I have one issue with the car (TMPS light is on) but other than that I LOVE it.