Well folks, November is almost over and with it comes the last day to order a Tesla Model 3 and be guaranteed delivery in 2018 with the full $7500 federal tax credit. If you were considering ordering one, today is a good time.
If you are waiting for the $35,000 model or your current lease to run out, let me do some explaining why it might make sense to order ahead of time as well…
Tesla has said that it expects to start delivering the base Model 3 toward the middle of the year. That means optimistically, you will have to expect that even if they deliver on time, which hasn’t often been the case, only the first few reservation holders will get theirs in time for the $3750 H1 Federal Tax Credit. That means most people who get the $35,000 vehicle can only hope to get a $1875 Federal tax credit. In New York for example, that won’t even cover tax.
What do you get for $5000?
The current base price of the 260-mile mid range Model 3, which still has all of the long range bells and whistles including glass roof, premium sound system (and it is very good imo), faux leather interior and the following:
- Premium heated seating with 12-way, power adjustable front seats
- Center console with covered storage, 4 USB ports and docking for 2 smartphones
- Premium audio system
- Tinted glass roof with ultraviolet and infrared protection
- Auto dimming, power folding, heated side mirrors
- Custom driver profiles
- LED fog lamps
You are getting this exceptional car for $38,500 after the $7500 credit excluding state incentives. That’s a pretty nutty deal and if you are in New York like me, you’ll get another $2000 off at the dealer from the state.
Waiting for the second half of 2019, you get a base Tesla Model 3 for $33,125 after $1875 tax credit: None of the features above and less 40 miles to 220 miles of range. No glass roof, no premium sound, no premium seating and it will be slower.
On resale value alone, I think you make up your $5000 with some change, but you also get to enjoy those premium features while you own the car. Also, as Tesla likes to note, you are likely saving a ton of money now on electricity prices vs. gas – Usually at least 50% off per mile.
Also you might consider that the outgoing Republican majority in the US house might pass some last second legislation to cut or remove the EV subsidy altogether. Here’s a Twitter thread about that possibility that makes a good case that there might not be any incentive in 2019.
Remember, you only get $7500 tax credit if you owe the Federal Government $7500 or more in taxes. You’ll have a lot better of an idea of how much you owe this year vs. next year.