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Discussion Starter #1
I've noticed that certain folks on ebay are listing used hybrids claiming that they are eligible for a $2000 tax credit. I thought that the tax credit was only applicable to new car purchases and to the original owner? I also thought the tax credit dropped to $1500. Anyone know for sure how this works?
 

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You are correct this only applies to NEW Hybrids. And the Insight does not qualify for the Tax Credit. It qualifies for the deduction. I believe Hybrids with a power system like the Pruis are even in a grey area taking the Tax Credit.
 

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I'm trying to determine which will be a better course - purchasing a new Insight with the $2,000 deduction which of course would include the new car Warranty. The MSRP on an 05 MT is roughly $19,500. My second thought would be to purchase a used Insight with less than 50K miles which I have priced for around $10,000. However, considering I am located in Dallas any purchase will probably require buying out of state sight unseen and shipping which will add about $1,000 to the purchase price. Thus, I can get a used Insight for around $11,000 or a new one for roughly $19,500 minus the $2,000 deduction. I'm unsure what amount the $2,000 deduction would actually reduce the purchase price since this is not a pure tax credit. Any input would be appreciated.
 

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I'm trying to determine which will be a better course - purchasing a new Insight with the $2,000 deduction which of course would include the new car Warranty. The MSRP on an 05 MT is roughly $19,500. My second thought would be to purchase a used Insight with less than 50K miles which I have priced for around $10,000. However, considering I am located in Dallas any purchase will probably require buying out of state sight unseen and shipping which will add about $1,000 to the purchase price. Thus, I can get a used Insight for around $11,000 or a new one for roughly $19,500 minus the $2,000 deduction. I'm unsure what amount the $2,000 deduction would actually reduce the purchase price since this is not a pure tax credit. Any input would be appreciated.
 

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Making about $34,000 a year, filing as a single person and taking the standard deduction, the Insight $2,000 deduction equalled me paying $300 less in taxes.

I'm not sure if the hybrid deduction is $2000 for 2005, though. I know it was being phased out even in 2004 (I think it was going to be only $1500), until Congress specifically voided the phaseout for 2004, but I'm not sure if they voided the phaseout for 2005, too. So the deduction you get might be only $1000 or $500.

Used is a good option, I think. Why not fly to the place where the Insight is and drive it back? Plane ticket = $350, gas on trip back = $100, hotels on trip back = $150, boost in MPG from so many highway miles: priceless...
 
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