QueenBee said:
I don't understand how the math would pan out. They could certainly lease the car to avoid the income tax return problem but how does taking a new car and converting it into a used car which sales tax will have to be paid when it gets sold allow the dealer to make more money? Maybe these sales were needed to meet a quota or allow them to get more of the back end manufacturer cash?
AFAIC the only way the federal rebate getting paid should be fraud is if it was paid twice on the car. It should just be paid at the time of purchase instead of a tax return credit since all someone has to do lease the car.
I posted a link to the rules a few posts up. The fraud is buying the car to merely get the $7500 tax credit, and the reselling it. It's in the rules.
Some states don't have sales tax, so your above arguments wouldn't apply there. Also, some states (at least Washington, maybe others) don't charge a sales tax on EVs.
But, even a 10% sales tax on a $40,000 car is only $4000 in sales tax. I'd say that $7500 directly in a slimy car dealer's back pocket to then sell a "used" car with extremely low miles would be (and has been) very tempting.
Besides, if they will cheat on the fed tax, they will cheat on the sales tax... Maybe sell the car to themselves at $10,000? Then sell it used for $35k?