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Discussion Starter · #1 ·
I love my Prius but I seriously considered the possibility of selling it (I have the title as part of our mortgage) and buying a 2006. I figured I could come close to an even deal since there's the $3,000 tax credit and that though I have 10,000 on mine, it would still command a very good price selling it privately.

However, what apparently puts the kabosh on this is that to get the combination of HID headlights and VSC--2 very desirable features for me that were included in the $2,000 Package #4--for '05, you'd have to go to Package #6 which I believe is around $5,000 (the price is hard to tell because when you price a Prius at Toyota.com, they ask for your zip code and then the available option packages become "Combination B", "C", etc.).
 

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I am considering the same thing but one problem is the $3000 tax credit for me might be offset by the need for me to lower the price of the 2005 by a similar amount. A buyer of the 2005 would need an incentive to not buy the new car himself and get the credit.
 

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I know another person who is selling a 2004 and buying a 2006 to take advantage of the tax credit. Myself, I'm getting a 2006 with package 4. The reported thefts of the HID headlights won't make me miss that option.

Did you get to the Peak Oil conference in Denver, Mr. Peak Oil (great license plate)? I know the person who organized it, and I went to a seminar summarizing it. Looked like a great conference. Personally, I think peak oil is the number two problem right after climate change.
 

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Discussion Starter · #4 ·
ChuckK said:
I know another person who is selling a 2004 and buying a 2006 to take advantage of the tax credit. Myself, I'm getting a 2006 with package 4. The reported thefts of the HID headlights won't make me miss that option.

Did you get to the Peak Oil conference in Denver, Mr. Peak Oil (great license plate)? I know the person who organized it, and I went to a seminar summarizing it. Looked like a great conference. Personally, I think peak oil is the number two problem right after climate change.
First, jsf, that's a good point about the tax credit for someone else possibly offsetting its advantage.

ChuckK, the HIDs are a plus for me as I'm diagnosed with a mild case of cataracts (even though I'm mid 50's) and I want to hold off a while before correcting it. I'm in a very rural area so theft is probably not a problem. Good luck on your new Prius (when it arrives)!

Good for you for being so aware of peak oil! Some of my progressive friends (and also the governor of Vermont) didn't know what peak oil meant until informed recently. It will be a household work (unfortunately) in a couple of years.

I didn't go to the Denver peak oil conference...great to see it happened. I'll see if anything on it is online. I have heard that similar meetings are beginning to occur in many communities around the country. Although I obviously am aware of the seriousness of peak oil, I am just getting active myself as I will for the first time attend a meeting of a newly formed local group that has started meeting monthly. The agenda will deal with the challenges of Energy Sources, Food/Agriculture, Health/Elder Care, Education, Building/Shelter, Transportation, Commerce, etc. I'm looking forward to learning more about it.
 

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Keep in mind that if you get rid of your 04 or 05 and took advantage of the Federal Tax break, by IRS law, you must refund a portion of the tax allowance. There is a thread on this forum which goes into detail about this subject. If I remember correctly you are obligated to keep the car for 3 years or return a prorated portion of the tax.
 

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wayneswhirld said:
Package #6 which I believe is around $5,000.
Package 6 is $3805. It's on the sales literature. Download your local .pdf brochure; it has all the option packages with prices broken out.
 

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Discussion Starter · #8 ·
Niomeka,
Thanks for the suggestion. I downloaded the pdf eBrochure. But for my area, I would have to get Option Combo D at $5,730 to get HID and VSC together.

Hopefully I can attach this screen shot...
 

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wayneswhirld said:
Niomeka,
Thanks for the suggestion. I downloaded the pdf eBrochure. But for my area, I would have to get Option Combo D at $5,730 to get HID and VSC together.

Hopefully I can attach this screen shot...
yikes. Sorry to hear that. Yea, Toyota for obvious reasons is initially only producing the most popular and also expensive option combinations. They have limited factory capability now, and they're selling them as fast as they can make them, so it's understandable IMO.

Having said that, it would be nice to get VSC (a safety feature) without having to get a luxury feature like an improved stereo if one doesn't want it.

You might be able to get better option choices if you wait, if that's possible. Also, have you might want to DL the brocure for other regions to see if you could buy out of state nearby...

Good luck!

(PS personally I think VSC is a great feature, but I could live without it. HID lamps I don't really care about, and they might even be a more expensive component to replace if they break.)
 

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Discussion Starter · #10 ·
I'll recheck the package or local combo options in the spring. Maybe as you say they'll change. That would be a good time to try to sell in my area as the snow will finally be gone. Beyond then, I would really start to lose some value in comparison to a new 2006. Good thought on checking out of state for different option possibilities...not sure if I want to go out of state...maybe. I really like the HIDs though the fog lamps are crap.
 

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firepa63 said:
Keep in mind that if you get rid of your 04 or 05 and took advantage of the Federal Tax break, by IRS law, you must refund a portion of the tax allowance. There is a thread on this forum which goes into detail about this subject. If I remember correctly you are obligated to keep the car for 3 years or return a prorated portion of the tax.
That is incorrect.

rpm
 

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Prius

rpm said:
firepa63 said:
Keep in mind that if you get rid of your 04 or 05 and took advantage of the Federal Tax break, by IRS law, you must refund a portion of the tax allowance. There is a thread on this forum which goes into detail about this subject. If I remember correctly you are obligated to keep the car for 3 years or return a prorated portion of the tax.
That is incorrect.

rpm
My new Prius is scheduled for delivery in January 2006. Will it for sure be eligible for the Federal tax rebate?
 

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rpm said:
firepa63 said:
Keep in mind that if you get rid of your 04 or 05 and took advantage of the Federal Tax break, by IRS law, you must refund a portion of the tax allowance. There is a thread on this forum which goes into detail about this subject. If I remember correctly you are obligated to keep the car for 3 years or return a prorated portion of the tax.
That is incorrect.

rpm
When this topic came up several months ago (the thread is somewhere on the forum) I did some research on the IRS website and found the information about keeping the vehicle for x number of years. If the vehicle is not kept for the period of time specified, the IRS expects a reimbursement.

Check page 46 of the IRS document http://www.irs.gov/pub/irs-pdf/p535.pdf which describes "Recapture of the Deductions". It describes the 3 year ownership (I think). It's written in IRSese.

Now for the real world, I don't know how the IRS would know if you sold or traded the car.

If my statement is not correct, please state what IS correct.
 

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[quote="firepa63
If my statement is not correct, please state what IS correct.[/quote]

what is correct is that you don't have to recapture anything unless you sell it to someone who will taking it out of the country, as I recall, or who will disable the hybrid system, that type of thing.
I researched it quite a while back, and can't give you citations; sorry.
Your citation is in agreement...if you read it carefully, it says you have to know or have reason to know that the buyer will take an action disqualifying it...it's not a blanket 3 year rule.
rpm
 

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The other recapture is if you write-off the vehicle for business use; private parties have no restriction on the deduction according to the cited IRS instruction.
 
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