Mannequins and Federal Tax Credits?

[bellyer]

I have a couple of dealers at this point who seem willing to give me first dibs on their Lariat with Extended Range mannequins as they release them for sale in the next month or so. There is definitely going to be some markup (probably $15k-$20k) on their pricing, which I hate, but understand given the demand and scarcity currently. The only way I will be able to swing it with my wife is if we can get the $7,500 tax credit. Does anyone happen to know if we would be able to claim the Federal Tax Credit for EVs on the mannequins? Ford or the dealers haven't already claimed the credit for the mannequins, have they?

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[Ostrichsak]

As long as these are truly dealer demos (no idea when this term "mannequin" became a thing) then they haven't been registered to an individual and will qualify for any tax credits same as if it was new with zero miles at delivery. I would certainly get the dealer to confirm this in writing since it's a larger sum of money involved and it will allow you to come back to them should they have pulled some shenanigans on the registration which is unlikely. Dealers have been known though to sell "demos" that were previously registered in the past. Always get it in writing.

 

[rdr854]

As long as these are truly dealer demos (no idea when this term "mannequin" became a thing) then they haven't been registered to an individual and will qualify for any tax credits same as if it was new with zero miles at delivery.

It is going to depend upon the dealer. I have seen some dealers that have tagged and titled the vehicle as a rental so that it could be used as a service loaner while others have not and leave it on the lot for folks to look at and trust drive.

 

[bellyer]

Thank you both!

 

[Pioneer74]

As long as these are truly dealer demos (no idea when this term "mannequin" became a thing) then they haven't been registered to an individual and will qualify for any tax credits same as if it was new with zero miles at delivery. I would certainly get the dealer to confirm this in writing since it's a larger sum of money involved and it will allow you to come back to them should they have pulled some shenanigans on the registration which is unlikely. Dealers have been known though to sell "demos" that were previously registered in the past. Always get it in writing.

Ford called them mannequins. Same for the Broncos and Bronco Sports they received but couldn't sell.

 

[TaxmanHog]

Ask them to show you the Manufacturers Certificate of Origin, if they show you anything else, Like the state issued title, then assume they have played games..... run..... don't walk .... from the deal.

If they indeed still posses the MCO, then you're golden for the TY-2022 tax credit, close the deal before the end of the calendar year!

 

[MillieChliette]

If the demo/mannequin is from a state that requires it to be registered & titled, it will not be eligible for the tax credit. Ford had a program for the Mach e where they credited the customer for these vehicles in one of those states, but as far as I know they have not confirmed a similar program for the lightning.

Also, 15k-20k adm for a demo lightning is too much. You can definitely find better than that.

 

[metroshot]

If the demo/mannequin is from a state that requires it to be registered & titled, it will not be eligible for the tax credit. Ford had a program for the Mach e where they credited the customer for these vehicles in one of those states, but as far as I know they have not confirmed a similar program for the lightning.

Also, 15k-20k adm for a demo lightning is too much. You can definitely find better than that.

Very good info!

My state requires titling and registration for demos so this might become necessary for the Lightnings!

 

[NeilO]

As long as these are truly dealer demos (no idea when this term "mannequin" became a thing) then they haven't been registered to an individual and will qualify for any tax credits same as if it was new with zero miles at delivery. I would certainly get the dealer to confirm this in writing since it's a larger sum of money involved and it will allow you to come back to them should they have pulled some shenanigans on the registration which is unlikely. Dealers have been known though to sell "demos" that were previously registered in the past. Always get it in writing.

Probably the dealer may refuse to confirm this in writing.

 

[Monkey]

Probably the dealer may refuse to confirm this in writing.

There isn't anything to confirm. It's either a new vehicle sale or it is not. Mannequins are sold as new vehicles unless the dealer registered and licensed them, then they're sold as used. It's no different than walking onto a lot and buying an inventory vehicle that has been sitting there for 6 months. In the case of the mannequins, if it's been in the showroom this whole time with hardly any miles on it, it's still new. Also Ford has provisioned an additional 6 months of warranty and stuff for the mannequins. ...Some dealers are not aware of that last bit. But they'll have to adjust the warranty start date when they sell the truck.

If they used the mannequins for test drives, it may have more miles on it and it varies by state as to how many miles will constitute a "used" vehicle. The dealership may or may not have licensed in the mean time, even if they know they should have, so be on the lookout for that. If they were put into their service fleet as a loaner, they're supposed to be licensed and would be a used car sale.

...All that said, if you buy a mannequin and it qualifies as a "new" car sale, then it will be eligible for the 2023 tax credit, if the MSRP is under $80K.

 

[Mike G]

I have a couple of dealers at this point who seem willing to give me first dibs on their Lariat with Extended Range mannequins as they release them for sale in the next month or so. There is definitely going to be some markup (probably $15k-$20k) on their pricing, which I hate, but understand given the demand and scarcity currently. The only way I will be able to swing it with my wife is if we can get the $7,500 tax credit. Does anyone happen to know if we would be able to claim the Federal Tax Credit for EVs on the mannequins? Ford or the dealers haven't already claimed the credit for the mannequins, have they?

Mannequins are unsold vehicles that have not been titled (at least they don't do that here in Alabama). My dealer still has theirs (Atlas Blue Lariat ER Max Tow). I see in your sig that you have a 23 already...are you looking for another Lightning as well?

 

[NeilO]

There isn't anything to confirm. It's either a new vehicle sale or it is not. Mannequins are sold as new vehicles unless the dealer registered and licensed them, then they're sold as used. It's no different than walking onto a lot and buying an inventory vehicle that has been sitting there for 6 months. In the case of the mannequins, if it's been in the showroom this whole time with hardly any miles on it, it's still new. Also Ford has provisioned an additional 6 months of warranty and stuff for the mannequins. ...Some dealers are not aware of that last bit. But they'll have to adjust the warranty start date when they sell the truck.

If they used the mannequins for test drives, it may have more miles on it and it varies by state as to how many miles will constitute a "used" vehicle. The dealership may or may not have licensed in the mean time, even if they know they should have, so be on the lookout for that. If they were put into their service fleet as a loaner, they're supposed to be licensed and would be a used car sale.

...All that said, if you buy a mannequin and it qualifies as a "new" car sale, then it will be eligible for the 2023 tax credit, if the MSRP is under $80K.

Thanks for the detailed answer. I never thought about the tax credit.

 

[bellyer]

Mannequins are unsold vehicles that have not been titled (at least they don't do that here in Alabama). My dealer still has theirs (Atlas Blue Lariat ER Max Tow). I see in your sig that you have a 23 already...are you looking for another Lightning as well?

I asked this question months ago before I had purchased my 2023. I have no need to get it addressed at this point. The 2023 ended up as a cancelled order at my dealer, so once I ended up with that, I stopped considering the mannequins.

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