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Discussion Starter · #1 ·
With the new inflation reduction act of 2022 potentially set to go into law in 2023, will we loose access to the $7.5k federal tax credit on Ioniq 5s?
 

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With the new inflation reduction act of 2022 potentially set to go into law in 2023, will we loose access to the $7.5k federal tax credit on Ioniq 5s?
The short answer is that we stand to lose the $7.5k tax credit as soon as it’s enacted. And that’s not in 2023, it’s imminent.

The Ioniq 5 sub-forum has a fair amount of discussion of this issue. Hyundai IONIQ 5
 

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thanks for the info. Not good news.
Very annoying. I have a deposit in on a Limited AWD, and when they called me a while back to offer me a cancellation, I rejected it because the color combo wasn't one of the ones I was looking for. And I wasn't in a hurry. Well, now I am DEFINITELY in a hurry!

Can you imagine the turmoil going on in the Hyundai America senior management meetings right now!!
 

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Discussion Starter · #5 ·
Very annoying. I have a deposit in on a Limited AWD, and when they called me a while back to offer me a cancellation, I rejected it because the color combo wasn't one of the ones I was looking for. And I wasn't in a hurry. Well, now I am DEFINITELY in a hurry!

Can you imagine the turmoil going on in the Hyundai America senior management meetings right now!!
Yea I am now considering a Limited where i was previously only considering an SEL just to get one before this all goes down. I mean, it likely could be next week that these credits disappear. I would have bought one months ago if i new this was going to happen. I was also awaiting Illinois' $4k tax credit that went into affect 7/1/22. Anyways...
 

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Very annoying. I have a deposit in on a Limited AWD, and when they called me a while back to offer me a cancellation, I rejected it because the color combo wasn't one of the ones I was looking for. And I wasn't in a hurry. Well, now I am DEFINITELY in a hurry!

Can you imagine the turmoil going on in the Hyundai America senior management meetings right now!!
I think in the short term, manufacturers aren’t really going to be impacted. There’s still so much demand that they’ll still sell every car they make. Only when enough people cancel orders and there are actually cars sitting on lots again will they start to panic.
 

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I think in the short term, manufacturers aren’t really going to be impacted. There’s still so much demand that they’ll still sell every car they make. Only when enough people cancel orders and there are actually cars sitting on lots again will they start to panic.
100% agree. Every single EV this year will sell. All that will happen is markups will be lower and resale will be higher. You may pay more now but if you resell or upgrade in a year or two… the total cost of ownership will be about the same because of higher resale value. Just don’t pay $10K markup and you will be fine.
 

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I think in the short term, manufacturers aren’t really going to be impacted. There’s still so much demand that they’ll still sell every car they make. Only when enough people cancel orders and there are actually cars sitting on lots again will they start to panic.
From the limited viewpoint of sales volume, I agree. However, there's a potentially large customer satisfaction issue in play.

There have got to be a large number of customer deposits on Ioniq 5s in the pipeline. Many of these will have agreed to pay quite significant upcharges over MSRP, and many of these same people are probably unaware that they are going to lose their $7.5K tax credit. Either they are totally unaware of the existence of, or details in the IRA of 2022, or they assume that it won't kick in until 1/1/2023. I've seen many posts with this interpretation.

So customer happily takes delivery in late 2022, assuming that they'll get the tax credit in 2023, and they get a surprise from the IRS in, say, April 2023. When they find out about this, they will quickly figure out that the industry must have known about this at the time that their order was fulfilled, and nobody thought to mention it? Oops!!

So does Hyundai America contact the pipeline customers to cover themselves? Or do they encourage the dealerships to alert all pipeline customers? Some of these pipeline customers will feel doubly gouged having paid a premium and missed out on the tax credit, and they'll be looking for targets to blame. Legally, they may have nobody but themselves to blame, but morally/ethically they'll probably feel betrayed.

Lots of decisions for Hyundai America and the Hyundai dealerships!
 

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From the limited viewpoint of sales volume, I agree. However, there's a potentially large customer satisfaction issue in play.

There have got to be a large number of customer deposits on Ioniq 5s in the pipeline. Many of these will have agreed to pay quite significant upcharges over MSRP, and many of these same people are probably unaware that they are going to lose their $7.5K tax credit. Either they are totally unaware of the existence of, or details in the IRA of 2022, or they assume that it won't kick in until 1/1/2023. I've seen many posts with this interpretation.

So customer happily takes delivery in late 2022, assuming that they'll get the tax credit in 2023, and they get a surprise from the IRS in, say, April 2023. When they find out about this, they will quickly figure out that the industry must have known about this at the time that their order was fulfilled, and nobody thought to mention it? Oops!!

So does Hyundai America contact the pipeline customers to cover themselves? Or do they encourage the dealerships to alert all pipeline customers? Some of these pipeline customers will feel doubly gouged having paid a premium and missed out on the tax credit, and they'll be looking for targets to blame. Legally, they may have nobody but themselves to blame, but morally/ethically they'll probably feel betrayed.

Lots of decisions for Hyundai America and the Hyundai dealerships!
Somehow I think sales reps will be even more clueless as to what’s happening.
 

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I do think the good dealers out there, like the ones charging MSRP, might say something. But it seems like most are adding ADM, which is a good clue as to how they’ll treat customers.
The ones selling at MSRP are in a strong position, since they tend to have a longer pipeline, and can afford to lose a certain number of customers who decide not to go ahead due to the loss of the tax credit.

My dealer is one of these zero-markup guys, so it will be interesting to see if they ask me if I still want to go ahead (assuming the Act is enacted). It's a good test of character!
 

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The below could be great new for Hyundai and those wanting an Ioniq 5 and the tax credit. The below came from the website electrek.co (credit to them).

Hyundai is not happy to be left out of the new EV tax credit, and told us that they’re working with dealers and customers to try to offer a purchase agreement:
Hyundai has recently announced US investments of $10B including EV manufacturing in Alabama and Georgia. We are disappointed that the current legislation severely limits EV access and options for Americans and may dramatically slow the transition to sustainable mobility in this market.
HMA and GMA are fully supporting our dealers to assist consumers with accessing the currently available tax credit through appropriate processes and purchase agreements.
If you have an Ioniq 5 on order, reach out to your dealer to see if you can get a purchase agreement signed. If you want an Ioniq 5, check your local dealer inventory, and if you’re lucky enough to find one, see if you can buy within the week.
 

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The below could be great new for Hyundai and those wanting an Ioniq 5 and the tax credit. The below came from the website electrek.co (credit to them).

Hyundai is not happy to be left out of the new EV tax credit, and told us that they’re working with dealers and customers to try to offer a purchase agreement:

If you have an Ioniq 5 on order, reach out to your dealer to see if you can get a purchase agreement signed. If you want an Ioniq 5, check your local dealer inventory, and if you’re lucky enough to find one, see if you can buy within the week.
So Rivian just offered everyone a 'binding' purchase agreement. I was a one click type of agreement and I am all set.
 

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If you have an Ioniq 5 on order, reach out to your dealer to see if you can get a purchase agreement signed. If you want an Ioniq 5, check your local dealer inventory, and if you’re lucky enough to find one, see if you can buy within the week.
So Rivian just offered everyone a 'binding' purchase agreement. I was a one click type of agreement and I am all set.
It would appear that Rivian is being very flexible, and allowing agreements on vehicles which as yet, don't exist, and in fact, don't have "locked" configurations or pricing. On the other hand, the Hyundai plan may be limited to vehicles in stock.

Here's Rivian's statement (and of course, we have yet to see the official Hyundai wording)...

Reminders
  • Customers are under no obligation to sign the binding order agreement
  • Rivian does not guarantee eligibility for federal EV tax credits
  • Signing a binding order agreement does not "lock" your configuration
  • Signing a binding order agreement does not guarantee vehicle pricing
  • For customers with reinstated orders or pending deposits, we'll be contacting you soon.
  • For customers with multiple deposits, we'll share a binding order agreement that, when signed, applies to all vehicles orders for which you've placed a deposit. If you only wish to apply the non-refundable deposit to certain orders, please contact the Customer Engagement Center.
 

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It would appear that Rivian is being very flexible, and allowing agreements on vehicles which as yet, don't exist, and in fact, don't have "locked" configurations or pricing. On the other hand, the Hyundai plan may be limited to vehicles in stock.

Here's Rivian's statement (and of course, we have yet to see the official Hyundai wording)...

Reminders
  • Customers are under no obligation to sign the binding order agreement
  • Rivian does not guarantee eligibility for federal EV tax credits
  • Signing a binding order agreement does not "lock" your configuration
  • Signing a binding order agreement does not guarantee vehicle pricing
  • For customers with reinstated orders or pending deposits, we'll be contacting you soon.
  • For customers with multiple deposits, we'll share a binding order agreement that, when signed, applies to all vehicles orders for which you've placed a deposit. If you only wish to apply the non-refundable deposit to certain orders, please contact the Customer Engagement Center.
These Rivian terms don’t feel like a “written binding contract to purchase” at all, especially the statement that pricing is not guaranteed. I guess that’s why the second bullet says they don’t guarantee eligibility for the credit. How can you have a purchase contract that doesn’t lock the price?
 

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These Rivian terms don’t feel like a “written binding contract to purchase” at all, especially the statement that pricing is not guaranteed. I guess that’s why the second bullet says they don’t guarantee eligibility for the credit. How can you have a purchase contract that doesn’t lock the price?
I was thinking the same thing. Hopefully Hyundai dealers will work with people for inbound 2022 Ioniq 5 vehicles. Maybe they will even sell at MSRP given these unique times.
 
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