EV Credit Transfer - accounting and receivables nightmare?

[DrewAment]

Dealers fear Cash for Clunkers scenario as EV credit transfer nears

Starting in 2024, eligible EV buyers will be able to transfer federal tax credits to dealers and use those funds as a down payment. Dealers, anxiously awaiting details on the process, are worried about a Cash for Clunkers scenario that could leave them footing the bill for several months.

www.autonews.com

Who remembers waiting for the "cash" from the cash for clunkers? With all the things that the government does the right and easy way, I am sure this will just be another easy process right? LOL

 

[Alex Snyder]

One could say the same administration is at the helm this time around too

 

[DrewAment]

The IRS expects to issue advance payments within 72 hours.

https://home.treasury.gov/news/press-releases/jy1783

Score one for the IRS, looks like I was wrong. Not afraid to admit it, and actually happy I was.

 

[Kelly Wilson]

I'm pretty sure dealers need to have their sign-ups for the program submitted before 10/31/2023

So if you're not sure it's done and ready, don't get left on the outside looking in no matter your personal feelings about EVs and don't be the dealer running around in a panic trying to get everything together and sent in while also handling end-of-the-month.

Even if you know your store "would never order an EV," you still may have a trade in that hits the under $25k used option and if you can't serve up the discount, you're going to give up potential gross.

Also, if you ARE a "no EVs here" store, not that any DR participants would be that way, there's a new facilitator just for wholesaling EVs - PLUG.