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  1. #31
    Guest

    Wait until 1 Jan to buy your 2006 Hybrid

    When I spoke to the IRS, they said the vehicle must either be purchased/taken delivery 1 Jan 06 or later to get the tax credit. That means that if you are the first owner of the vehicle (05 or 06) then you are entitled to take the credit. If you get the 06 before the end of the year, you only get the tax deduction.

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  3. #32
    Guest

    Wait until 1 Jan to buy your 2006 Hybrid

    Another issue is that the manufacturer has to issue a certification that the vehicle meets the requirements set up by the new law. It appears as though you are not entitled to the credit unless you have this certification. I have a certificate from the manufacturer's web site for my 2005 purchased in 2005 but I don't know if that certificate would be valid for a vehicle under the law taking effect January 1. I have a very strong suspicion a 2005 cetrificate would absolutely not apply to a 2006 model year vehicle.

  4. #33
    Guest

    Wait until 1 Jan to buy your 2006 Hybrid

    Thanks for your ideas. Some folks on this discussion have mentioned waiting to "take delivery" on a new Prius until Jan 1st; have other people been able to convince dealers to hold off on delivery of their special-ordered car until the new year? My dealer doesn't seem at all interested in that idea.

  5. #34
    Guest

    Wait until 1 Jan to buy your 2006 Hybrid

    Yeah, this whole dilemma is a sticky one! We ordered our Prius in Oct and later found out about the Tax Credit 2006 (which could be over $3500 cash value) over the Tax Deduction for 2005 (which only amounts to $300 cash). I do my own taxes but have recieved help from two accountants about the subject. Technically the model year does not matter so long as the purchase date (or possibly in the government's interest the date that the vehicle was registered (which should be the same day)) will be proof enough for your taxes when you apply for the credit in 2007. The manufacturers are not going to give people documents that state that they had purchased car #1,026 of 60,000. It is a time frame. Just shoot for delivery of the vehicle within the first three months (2005 or 2006 model year) and you will be fine! Keep in mind too that certain states offer a state tax credit as well. Colorado is one of these and the combined credit should be about $6500!
    If you are in line for a 2005 Prius and are concerned about changing to a 2006 which my dealer is offering me, here is what you will gain and lose:
    2005 models have a cassette player while 2006 models will play mp3 cds and has an audio input.
    2006 is more expensive but leather seats are available and a rear camera with a better navigation system is avail. I don't know what is supposed to be so great about the new nav but the current one is way better than the BMW/Mini Nav system and I still have a TON of cassette tapes!
    Also new are minor tweaks to interior, new grill, dash is textured, rear seat lowered a bit, and 4 new colors of exterior. Hope they scrapped the awful tan interior. But I bet they didn't.

  6. #35
    Guest

    Wait until 1 Jan to buy your 2006 Hybrid

    The real difference between delivery in 2005 and 2006 is not going to be what the initial hype might lead one to think. In the real world, it will be close to a wash for most people. Here is why (you can skip to the last paragraph for the bottom line on this issue).

    Most preliminary calculations of the 2006 tax benefit range from $2,750 to $3,150. The new tax credit has to be calculated using multiple variables, and is going to be much more complicated than the current deduction, as is the process one will likely have to go through to actually get it (and I do not have a very high degree of trust that the 2006 credit will remain solid). For 2005, one can be certain of the amount of the current deduction, and of the fact that one can actually claim it right on the tax return filed next April 15. At a combined federal/state tax bite of only 30%, one would net $600 between the federal and state benefits (in most states) of the current $2,000 deduction. If there were only the tax benefit to compare, then, yes, 2006 would definitely be better (at least for the first 60,000 buyers). However, the sticker prices on the 2006 Prius are going to be significantly higher than those on the 2005, and these actual costs will wipe out all or most of the potential tax gain.

    The base price of the Prius for 2006 goes up another $450 (it has already gone up $300 recently), to $21,725. Toyota's freight charge included in the MSRP (shipping and handling) also goes up by $40 to $580. The option packages being shipped will also be higher in price. In each area of the country, dealers receive virtually all of their Prius units in a fixed number of option packages. For example, the Central Atlantic States currently receive three packages (codes AG, AM and BC). For simplicity, I will call them packages A, B and C. For the 2006 model, these will compare to HE, HK and NL (with a fourth package, NW, adding leather). Again, for simplicity, I will call them A, B, and C (and C-with-leather). There is a very close parallel between the 2005 and 2006 packages (a rear camera and MP3 capability being added in 2006), with the B packages having all of the safety options. In 2006, initial shipments will be 15% A, 52% B, 25% C (and 8% C-with-leather).

    Since the majority of units will have option package B, let's look at the actual sticker price of a 2005 "B" Prius and a 2006 "B" Prius. The 2005 has a $21,275 base, plus $2,075 option package, plus $540 freight, for a total of $23,890. The 2006 has a $21,725 base, plus $3,830 option package, plus $580 freight, for a total of $26,135. This is an increase in actual MSRP of $2,545 on the cars that the majority of buyers will actually be able to purchase. This is before any accessories (like floormats) are added, and you can bet those items are not going down in price!

    To summarize, I can get a "B" Prius in 2005 for $23,890 and save $600 from tax benefits, for a net of $23,290. In 2006, I can get a B Prius for $26,135 and (potentially) save up to $2,750-$3,150 from tax benefits, for a net of $23,385-$22,985. Delivery in 2006 could range from costing an additional $95 to saving $305. From a financial standpoint, waiting until 2006 because of the tax law changes isnt going to be a big deal for the majority of buyers.

  7. #36
    Guest

    Wait until 1 Jan to buy your 2006 Hybrid

    Will Lexus sales count toward Toyota's 60,000 sales? Or will Lexus stand alone. They (Lexus)currently offer one hybrid vehcile with a second coming in the spring of 2006.

  8. #37
    Guest

    Wait until 1 Jan to buy your 2006 Hybrid

    Paid a "non refundable" $500.00 to a Conyers (near Atlanta) Honda dealership on October 10, 2005 for a new 2006 Opal Blue / tan Honda Civic. Well, it's November 13th now and the dealer is only able to say that the car was "released" on October 19th.

    Do any of you know what "released" means? The Hybrid Civic is built only in Japan - right ? - so "released" could mean - what... February or March of 2006 ?

    Thanks.
    Bill Trail
    Macon, Georgia

  9. #38
    Guest

    Wait until 1 Jan to buy your 2006 Hybrid

    (didn't clarify)... 2006 Opal Blue/tan Honda Civic Hybrid.

    thx
    bt

  10. #39
    Guest

    Wait until 1 Jan to buy your 2006 Hybrid

    ...as a follow-on question: If the HCH is only built in Japan then won't we on the east coast (Atlanta/Conyers) be the LAST to see a 2006 Honda Civic Hybrid?

    thx again
    bt

  11. #40
    Guest

    Wait until 1 Jan to buy your 2006 Hybrid

    You guys are great with data I haven't been able to find. Here's a new question: Can one taxpayer buy TWO hybrids early in 2006 and get TWO tax CREDITS?

    I am thinking of a 2006 Honda Civic Hybrid (I have a 2003 now) and a Toyota Highlander Limited Hybrid with Nav. Any suggestions on getting the best price on the Highlander?

    BobA

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