4xe cheaper than JLUR 2.0T ! ($7500 Rebate Explained)

[FloridaLarry]

I calculated $54,360 for 4xe (includes the $7500 rebate) vs $54,920 for JLUR with options: auto-4x4, LEDs and 8.4 nav, which are standard on 4xe.

So its actually cheaper to get a 4xe if:

• you pay more than $7500 in taxes
• you were thinking of buying (not leasing) a JLUR 2.0T or 3.6L 8-spd
• you can wait the 8 weeks if can't find one on the lot

Is there more to it?

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[Monster1926]

I think to get the $7500 tax refund you have to itemize. apparently I’m wrong on itemized vs standard deduction.

I got this off of car and driver. If you owe at the end of the year the $7500 will be deducted from that you won’t get excess in the form of a check.

Then you fill out form 8936 along with your tax return. It is important to note that the credits are non-refundable tax credits, as opposed to refundable tax credits. That means that the credits can only be applied to the taxes you owe in a given year, and if you received more in credits than you owe in taxes, you will not receive the difference in the form of a check.

 

[FloridaLarry]

I think to get the $7500 tax refund you have to itemize. I could be wrong though.

It supposed to be $7500 right off the taxes owed, assuming you pay more than $7500 (and if your shopping $60K vehicles, I hope you are or we need an new tax code).

Instructions for Form 8936 (01/2021) | Internal Revenue Service (irs.gov)

"The following requirements must be met to qualify for the credit.

• You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit.
• You placed the vehicle in service during your tax year.
• The vehicle is manufactured primarily for use on public streets, roads, and highways.
• The original use of the vehicle began with you.
• You acquired the vehicle for use or to lease to others, and not for resale.
• You use the vehicle primarily in the United States.

"

 

[Monster1926]

It supposed to be $7500 right off the taxes owed, assuming you pay more than $7500 (and if your shopping $60K vehicles, I hope you are or we need an new tax code).

The taxes you pay on a vehicle purchase are state sales tax. The $7500 tax credit is from the federal government.

 

[Ratiogear]

The taxes you pay on a vehicle purchase are state sales tax. The $7500 tax credit is from the federal government.

I think he means that if you're able to afford a 60k car, you should be owing more than 7500 in taxes or there are some fucked up tax loop holes benefitting the relatively wealthy (a 60k car should be people making 120k or more by the rule of thumb to buy a car worth 50% or less of your annual income, and 120k is the 89 percentile of earners).

 

[FloridaLarry]

The taxes you pay on a vehicle purchase are state sales tax. The $7500 tax credit is from the federal government.

? I never mentioned sales tax. Anyway, on your 2021 taxes you file next April, you end up paying $7500 less than you would have if you didn't buy an electric from Jeep.

 

[hoag4147]

I calculated $54,360 for 4xe (includes the $7500 rebate) vs $54,920 for JLUR with options: auto-4x4, LEDs and 8.4 nav, which are standard on 4xe.

So its actually cheaper to get a 4xe if:

• you pay more than $7500 in taxes
• you were thinking of buying (not leasing) a JLUR 2.0T or 3.6L 8-spd
• you can wait the 8 weeks if can't find one on the lot

Is there more to it?

Did you include the recent pricing increase that was not included in the July pricing guide? I believe it was like $1200 increase.

 

[Low_Spark]

My understanding is it's the same type of credit as the First Time Homebuyers Credit. You don't need to itemize to get it.

 

[FloridaLarry]

I think he means that if you're able to afford a 60k car, you should be owing more than 7500 in taxes or there are some fucked up tax loop holes benefitting the relatively wealthy (a 60k car should be people making 120k or more by the rule of thumb to buy a car worth 50% or less of your annual income, and 120k is the 89 percentile of earners).

This ^^.
Also, 10% of your gross monthly income for a loan payment for non car enthusuiasts. Car guys can pay up to 20% lol.

Did you include the recent pricing increase that was not included in the July pricing guide? I believe it was like $1200 increase.

I did not. However, that $1200 bump now includes a couple of options that are now standard, such as off road floor mats and proximity, I believe.. but yes, they keep increasing the price. Once the tax credit drops off (when Stella reaches 200K EVs sold) the price will drop to compensate. But they need to sell a bunch more 4xe's and Ev mini vans for that.

 

[hoag4147]

This ^^.
Also, 10% of your gross monthly income for a loan payment for non car enthusuiasts. Car guys can pay up to 20% lol.


I did not. However, that $1200 bump now includes a couple of options that are now standard, such as off road floor mats and proximity, I believe.. but yes, they keep increasing the price. Once the tax credit drops off (when Stella reaches 200K EVs sold) the price will drop to compensate. But they need to sell a bunch more 4xe's and Ev mini vans for that.

I was running same comparisons lately. Just wish they would let you throw in the XR pkg on the 4XE . Would be throwing 37s on immediately and would be nice having new gears

 

[FloridaLarry]

I was running same comparisons lately. Just wish they would let you throw in the XR pkg on the 4XE . Would be throwing 37s on immediately and would be nice having new gears

Would be cool. They need to develop the lift kit first. They are drivetrain-specific. They will get there if more people buy 4xe's.

 

[Monster1926]

It supposed to be $7500 right off the taxes owed, assuming you pay more than $7500 (and if your shopping $60K vehicles, I hope you are or we need an new tax code).

Instructions for Form 8936 (01/2021) | Internal Revenue Service (irs.gov)

"The following requirements must be met to qualify for the credit.

• You are the owner of the vehicle. If the vehicle is leased, only the lessor and not the lessee, is entitled to the credit.
• You placed the vehicle in service during your tax year.
• The vehicle is manufactured primarily for use on public streets, roads, and highways.
• The original use of the vehicle began with you.
• You acquired the vehicle for use or to lease to others, and not for resale.
• You use the vehicle primarily in the United States.

"

“It supposed to be $7500 right off the taxes owed”
I assumed you were talking about the sales tax collected when you purchase a vehicle. That’s also taxes owed.

 

[rent]

I think to get the $7500 tax refund you have to itemize. I could be wrong though. I got this off of car and driver. If you owe at the end of the year the $7500 will be deducted from that you won’t get excess in the form of a check.

Then you fill out form 8936 along with your tax return. It is important to note that the credits are non-refundable tax credits, as opposed to refundable tax credits. That means that the credits can only be applied to the taxes you owe in a given year, and if you received more in credits than you owe in taxes, you will not receive the difference in the form of a check.

You are correct that the $7500 is a non-refundable tax credit. But you do not need to itemize your return to use it.

 

[hoag4147]

Would be cool. They need to develop the lift kit first. They are drivetrain-specific. They will get there if more people buy 4xe's.

Agree. You may as well through a 1” spacer on since that is all everyone is seeing from the Mopar lift on the 4xe Rubi’s.

 

[Monster1926]

I think he means that if you're able to afford a 60k car, you should be owing more than 7500 in taxes or there are some fucked up tax loop holes benefitting the relatively wealthy (a 60k car should be people making 120k or more by the rule of thumb to buy a car worth 50% or less of your annual income, and 120k is the 89 percentile of earners).

Love the loop holes.

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