Buy a new PHEV / EV with tax credit, use for 1 yr, then sell hoping to beat depreciation

SeaPhoenix

Hi all,

I have this schematic idea which I posted about on reddit before to get a confidence gauge. It’s a plan of sorts to try to navigate the current crazy car markets, without losing tons of money. Probably not the best idea, quite risky, most likely will still lose money but that’s ok as long as its less than I would lose otherwise.

Essentially I’d buy a PHEV / EV that qualifies for the tax credit, use it as my daily driver, and in over a year resell it once the markets have calmed down and get another car more to my liking (probably used to maximize my purchasing power). Not that I don’t like PHEV/EVs.. The hope would be that I can sell it for less depreciation from what I bought it new for, than the federal tax credit saves me.

I know its risky, but if I were to do it, what would be the best car to purchase, and what other advice would you think of to go about it the best? I.e., probably it would be good for me to sell it independently instead of back to a dealership to save a bit, I’m not off-put by that idea. For car model I’m currently looking at the 2021 Honda Clarity PHEV, which qualifies for the full $7500 credit. On Caredge.com, historically honda clarity PHEVs have depreciated a little more than $5000 in their first year of ownerships. Not many more PHEV / EV cars that seem to depreciate less than $8000 in first year… I’d also consider the Subaru crosstalk hybrid but it only qualifies for $4500 of the federal tax credit.

Thoughts, advice?

stickguy

buy what you like and expect to keep it. Your plan could work if the market is still strong when you want to sell. On the resale part of course, not going to help you on the buy side.

so whatever you get, make sure you are OK with keeping it longer!

And right now, there seems to be a good supply of Hyundai Ioniq plug ins. Might be able to get a decent deal there.

maybe get a ST lease instead to lock in the costs, assuming a much better buying environment when the lease is up?

qbrozen

Many posters here and elsewhere have leased a Wrangler 4xe with this in mind. Wranglers have always had absurd resale, even before the current market conditions. And leasing one allows taking advantage of the $7500 incentive at the point of sale rather than waiting for tax time.