Shoppers Shocked by Car Dealership's Mistake on Significant Discounts
A couple from Oregon and several other buyers nearly missed out on a considerable cost reduction while purchasing their new electric vehicles due to a paperwork blunder by the dealership. This discovery left them feeling shocked and disappointed.
The Backstory
For over a decade, to promote the adoption of electric vehicles (EVs), the federal government has been offering a substantial tax incentive to buyers. However, this tax credit was set to end on the last day of September. This impending deadline led to a surge in potential buyers and lessees rushing to car dealerships during the summer of 2025 to avail of this benefit before it ran out.
In fact, EV lease prices dropped to as low as $10 in July, and demand remained high through September. Among the sea of buyers were an Oregon-based pair, Katie Larsell and Michael Schilmoeller, who chose to buy the Kia EV6. They finalized their purchase towards the end of August, thus making them eligible for a $7,500 credit.
However, they later realized that the dealership had made an error. Despite Larsell's insistence on ensuring that all necessary paperwork was completed correctly for the tax credit, she found out that the dealership had not submitted its own purchase-related documents to the IRS. To their surprise, their friends, Richard Curtis and Jan Apland-Curtis, who had bought the same model from the same dealership earlier that year, faced the same problem.
Why Does It Matter?
The soon-to-be-terminated EV incentive was designed to encourage buyers to consider electric vehicles for their next purchase. Interviews conducted in September showed that many current EV owners were attracted primarily by the low prices, proving that the incentive had been largely successful.
Furthermore, a study by J.D. Power revealed that the EV credits had indeed served their purpose. The study found that nine out of ten EV owners were unlikely to revert back to gas-powered vehicles. However, the mishap in Oregon threatened to hamper the progress made in EV adoption. Such an oversight could leave a sour taste in the mouths of new EV owners.
Luckily, both couples eventually managed to secure their credits. The process involved obtaining two documents: a "time-of-sale report" that needed to be sent within three days of sale, and a "copy of confirmation". This ensured their eligibility for the $7,500 credit. However, the incident served as a reminder for future buyers to double-check all paperwork with the dealership to avoid any hiccups.
It is noteworthy that the IRS recently clarified that as long as the sale is completed by the end of September, the buyers don't need to have their vehicle in possession to claim the credit. The credit for qualifying used vehicles goes up to $4,000, while for new vehicles, it could be as much as $7,500, depending on the vehicle's manufacturing details. Buyers can check a list available on Consumer Reports to see if their chosen model qualifies.
What's Next?
As EV sales continue to surge, there is a risk that other potential buyers may encounter similar issues. Earlier in the year, the National Auto Dealers Association issued a reminder to dealerships nationwide about the importance of correct paperwork. However, Apland-Curtis expressed concerns about buyers, like herself, who might not be aware of this issue. She expressed her apprehension, saying that it didn't seem fair to the consumers if such issues were widespread.