To negotiate the transfer of the EV tax credit to reduce your purchase price effectively, follow these strategies:
1. Verify Dealer Registration
Confirm the dealer is registered with the IRS Energy Credits Online portal. Only registered dealers can process the credit transfer. If unregistered, they cannot apply the credit, so seek alternative dealers.
2. Target Vehicles Under $25,000
Aim for cars priced ≤$25,000 (or negotiate down to this range) to maximize the $4,000 credit (30% of the price, capped at $4k). For example:
- $25,000 sale price → $4,000 credit
- $12,000 sale price → $3,600 credit
3. Negotiate Using the Credit as Leverage
- Email-first approach: Propose lowering the price to $25,000 explicitly to qualify for the full credit.
- Credit-as-down-payment: Request the credit be applied directly to reduce the sale price or as a cash equivalent. Dealers receive the credit as an advance payment from the IRS, so they benefit by closing the sale.
4. Demand Form 15400
Ensure the dealer provides Form 15400 (seller report) at purchase, confirming eligibility. This form is mandatory for the transaction.
5. Research Pre-Negotiated Deals
Check broker listings or sites like Recurrent Auto for dealerships already offering point-of-sale credits. Use these as benchmarks during negotiations.
Example negotiation script:
“I’m interested in [Vehicle X] priced at $26,500. If you lower it to $25,000, I can apply the $4,000 credit, effectively paying $21,000. This works for you because the IRS reimburses the credit.”
For used EVs, prioritize dealerships with high EV inventory (e.g., Hertz sales) where urgency to sell can strengthen your position.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-can-i-negotiate-with-my-dealer-to-ensure-they-pass-on-the-tax-credit/
