Financially ideal to buy a new Focus Electric every year

Hi everyone - has you can see from Tony's Tips for buying the Focus Electric in the Buying/Leasing section, I'm a hardball negotiator and last year I got my focus for really low numbers which after the Tax rebate it was just sub-$20K (although I feel theses deals are easy to be had if you try).

But I have a guy who works for me has offered to buy my Focus (now has 16K on the clock) for $17.5K. His income is well below the threshold where he could use any tax credit and he feels this is the only way he could get the car so cheap (i.e. no point in him buying new).

As a result, I've spent about 2K in car depreciation for 1 year, assuming I can get the similar deal to how I got last year.

Not sure how long this will last (either the tax credit or the Focus Electric pricing) but its simply irresistible not to just buy a new one every year.

That's quite in idea. In California, one needs to keep the car three years or the state $2500 rebate must be returned, although I think I've heard they will waive this requirement if the car goes to another California driver.

Your friend would be wise to pass on this deal. He can get a 2013 with only 6,000 miles or so for less than $17,000. There are loads of these around because of the SSN recall.

the guy who can't or does not want to use tax credit should probably be leasing at 300+/- a month. Leasing company will use the credits and factory rebate. (not sure what residual value would be and weather the guy would be ahead as compared as a straight buy)

I don't know how you'd justify buying a brand new FFE WITHOUT the tax credit, especially since you'd be able to buy one around 20k with little miles.

Are they limits on how many $7500 tax credits per year a person can claim (assuming he pays a lot of taxes of course)?

In PA there is a $2000 check the DEP sends for 500 first buyers (they still have 300 openings) BUT that check is treated as regular income

http://insideevs.com/top-15-faqs-income-tax-credit-plug-vehicles/

The New Plug-In Tax Credit doesn’t have an expiration
date. Purchasers of qualified vehicles can continue to claim the credit until the manufacturer has sold 200,000 qualified vehicles for use in the States. Once a manufacturer’s U.S. sales reach 200,000 qualified vehicles, the Credit for all qualified vehicles produced by the manufacturer will begin to phase-out over a one year period.

So, qualified vehicles means all cars that fit the Plug-in requirement, including fusions, etc. which I would like to buy in a few years if the credit is still there.

Hope this helps