[kenchills]

It's my understanding the credit can be claimed twice in the same year. As long as one's tax liability is large enough. Just don't know if there's a minimum length of ownership in order to claim the credit. I've only owned the car for two weeks.

From my novice understanding of California lemon law you're correct that it wouldn't yet be classified as a lemon. Though if their estimate on the time to repair is correct is appears that it's headed that way. From what I read if it's in the shop for over a month during the initial warranty period that classifies it as a lemon.

I suspect the GM at the dealership knows this is where it's heading and is why he offered a refund. He even suggested it might be worth calling Chrysler and telling them this is headed for a lemon buy back to see if they might be able to expedite a replacement vehicle or otherwise help.

The car does have other issues as mentioned in my original post. The dealership tells me replacing this module would fix the most critical of the issues. They have yet to investigate the other issues. They said they wanted to get this one out of the way first.

There is no minimum length of ownership to take the $7500 tax credit. You simply have to be the very FIRST person to have the vehicle titled in your name. You could buy the vehicle new and sell it days later and be perfectly OK to take the tax credit.
Also, only the very FIRST titled owner can ever take the tax credit, even if he/she chooses not to. 2nd and further owners are never entitled to the tax credit.
Also, you can take as many tax credits as you can use (at $7500 a shot) provided you have the tax liability. If I bought a RAV4 Prime and a Pacifica Hybrid this year, I could take the $7500 credit on both. If I bought (2) Pacifica Hybrids and (1) RAV 4 Prime, I could also take the tax credit for all 3 this year, provided I have $22,500 in tax liability.
The silver lining here is you just might make out here with (2) tax credits, if they buy back your Pacifica Hybrid and then you also buy a new replacement this year. And don't feel bad about taking the tax credit on the one they buy back, since you are the only one who could ever take this credit anyway.

 

[triggerhappy007]

There is no minimum length of ownership to take the $7500 tax credit. You simply have to be the very FIRST person to have the vehicle titled in your name. You could buy the vehicle new and sell it days later and be perfectly OK to take the tax credit.

No, that would not be OK. That sounds like you bought it for the purpose of resale which is forbidden on form 8936:

Instructions for Form 8936 (01/2021) | Internal Revenue Service

www.irs.gov

OP should talk to a tax expert first. If a new car is returned, will he be able to claim the tax credit?

 

[kenchills]

No, that would not be OK. That sounds like you bought it for the purpose of resale which is forbidden on form 8936:

Instructions for Form 8936 (01/2021) | Internal Revenue Service

www.irs.gov

OP should talk to a tax expert first. If a new car is returned, will he be able to claim the tax credit?

I definitely do understand what you're saying, and you are right.... I should not have put it that way.
Intent of dishonesty for purposes of reselling and taking advantage of tax credit is not good, and would never be what I was getting at.

What I am getting at is sometting like this:
If the car (however unfortunately) was totaled as soon as you drove it off the lot, you would effectively sell it to the insurance company ASAP, even though you barely drove or even owned the car. This doesn't mean that you can't take the tax credit. You were still the one and only first owner, and did not buy intending to sell the car after such a short period. Afterwards, you still can turn around and buy a new one, and take another tax credit. The same applies when when a car is bought back because of manufacturer defects. The tax credit does not disappear just because you have not owned the vehicle long enough. The manufacturer also cannot claim the tax credit when they buy back a vehicle. There is one and only one first owner of a vehicle. If he/she does not claim the credit, nobody else can, and the credit is essentially wasted.

 

[mkaz311]

I'm surprised the dealer offered you a refund. I have a OnePlus 7T and had to install Android Auto from the play store and adjust the wireless network settings to make Android Auto connect and be able to stream music. It can be done.

Same here, I know the dealer is capable of unrolling/cancel a deal but if they submitted the title to your name already (rolls off the dealer lot) Chrsyler has to officially buy it back. I believe the dealer is leaning on FCA corporate is going to buy the vehicle back on their dime, and hopefully dealer gets another sale from a happy customer! Makes sense to me if they can wing it, maybe the dealer will offer a equivalent deal as before if they want another sale with minimal haggling

 

[kenchills]

Same here, I know the dealer is capable of unrolling/cancel a deal but if they submitted the title to your name already (rolls off the dealer lot) Chrsyler has to officially buy it back. I believe the dealer is leaning on FCA corporate is going to buy the vehicle back on their dime, and hopefully dealer gets another sale from a happy customer! Makes sense to me if they can wing it, maybe the dealer will offer a equivalent deal as before if they want another sale with minimal haggling

Yup, that's pretty much what happens. Ask me how I know.

In the beginning, I was naive and thought the dealer could just switch out for a new vehicle. I could not have been more wrong.
The dealer does not buy back the Pacifica....... Chrysler (the manufacturer) does. When you surrender the vehicle, the manufacturer's rep comes out to the dealer to have you sign the paperwork. A check is then issued to your finance company, as the vehicle is actually being bought from you by the manufacturer. It is a drawn out process, often taking a month or two, which is nothing like returning an item to your local store.

When all is said and done, the dealer then has the chance to sell you a new vehicle yet again. The saving grace for all your anguish and trouble is that you can still take the tax credit for the vehicle, as you (the first owner) are the only person who could ever take the credit anyway.
You are then free to buy another vehicle (even the same kind), and are eligible for any tax credit that comes with that vehicle.

Of course, none of this may apply if you leased the vehicle.... because if you leased the vehicle you were never the owner, and were never entitled to the tax credit (unless your particular lease specifies that the tax credit passes on to you.)
Chrysler Capital usually takes the tax credit for themselves, if you lease it from them.

 

[Zielin]

Unfortunately the dealership doesn't have any equivalent vehicles in inventory I order to sell me a second one. The same shortage that is limiting their ability to get the replacement part is also limiting their ability to get new inventory.

That is part of the dilemma. I'd like to stick with this dealership. I like them despite all the car issues.

The dealership general manager told me I'd have to try to find and buy a replacement vehicle at a different dealership. He said he's ok with that as long as I'm happy in the end.

I suspect with the limited inventory it may be tough for me to get the same price at another dealership now. Though if I can indeed take the credit twice maybe it will make up for that.

I hope it doesn't take months for the buyback as you're saying.

 

[peterweb]

Unfortunately the dealership doesn't have any equivalent vehicles in inventory I order to sell me a second one. The same shortage that is limiting their ability to get the replacement part is also limiting their ability to get new inventory.

Have you searched inventory from other dealers somewhat close to you? Maybe your dealer can get a vehicle transferred for you.

 

[Zielin]

Have you searched inventory from other dealers somewhat close to you? Maybe your dealer can get a vehicle transferred for you.

I have. The one dealership I've asked them about so far they say they don't trade with.

 

[kenchills]

@Zielin

I had my 2018 PacHy bought back in 2018 (battery issues) and went though the whole process. It was rough at the time. But when we got over the bitterness of the whole experience, wife and I started looking at our options. We waited years, hoping for something equivalent from Toyota or Honda. Nothing.
To this day, there is no plugin hybrid van except for the Pacifica........ so with zero other options, we decided to jump in again in 2021. It is superior in so many ways to the 2018. We have never loved any Toyota or Honda van as much as we love this PacHy, and we have been through a few minivans over the years. I don't know how Chrysler did it, but there's something about this van you just can't quit.

It sounds like you have a good honest dealer, which seems to be the exception nowadays. Can definitely see why you want to stick with them. I really do hope your situation works out for the best.

 

[Zielin]

Thanks @kenchills

It is definitely a sweet car... when everything is working. We loved our week with it despite all the issues. As you may have guessed by the fact I'm still considering buying another.

I know what you mean by the lack of larger plug in vehicle options. We were cross shopping the RAV4 Prime, but it is impossible to get without a significant wait and/or markup.

If we are able to secure another car this experience is telling me it may be wise to get an extended warranty.

 

[mkaz311]

Unfortunately the dealership doesn't have any equivalent vehicles in inventory I order to sell me a second one. The same shortage that is limiting their ability to get the replacement part is also limiting their ability to get new inventory.

That is part of the dilemma. I'd like to stick with this dealership. I like them despite all the car issues.

The dealership general manager told me I'd have to try to find and buy a replacement vehicle at a different dealership. He said he's ok with that as long as I'm happy in the end.

I suspect with the limited inventory it may be tough for me to get the same price at another dealership now. Though if I can indeed take the credit twice maybe it will make up for that.

I hope it doesn't take months for the buyback as you're saying.

Sadly the buyback process is a bit painfully long but you might want to start going through the process to get it approved. The dealer wants to make you happy but sadly the process is almost completely out of their control and their right to get you going through the lemon law buyback process as quickly as possible.
Silver lining is that if it does end up taking a month or two maybe inventory issues will improve?
Took me a month just to get FCA to approve the first of two steps but I didn't push hard since I know it's hard to find replacements right now with the pacifica factory on pause from chip shortages.
Although once you get the lemon buyback approved by FCA (preferably in writing/email from customer service), you could just take your vehicle back while the process continues if you can live with it.

 

[Zielin]

Do you recommend I wait before purchasing a second vehicle while the buyback process is ongoing?

I can live with two car payments for a couple months, but I'd hate to pull the trigger on a second vehicle if there is a chance the buyback on the first could potentially fall through.

 

[mkaz311]

Do you recommend I wait before purchasing a second vehicle while the buyback process is ongoing?

I can live with two car payments for a couple months, but I'd hate to pull the trigger on a second vehicle if there is a chance the buyback on the first could potentially fall through.

Before I'd entertain that idea I would be sure that the buyback is 100% approved (in writing via mail/email) by at least FCA, before it's probably worth the time/risk (there's argument that potentially want approval from whatever contractor that handles the buyback process as well). Although there's no reason you shouldn't start shopping now if you decide to go down the lemon buyback route.
I have been seriously considering signing a purchase contract for a new 2021 Hybrid vehicle on the lot or in transit (with a refundable deposit) as long as it's a great deal and the dealer I'm purchasing from is fully aware its under the assumption/contingent on the buyback of your previous lemon. (like buying a house when your selling your old one)
That's probably the only way I'd consider actually "buying" another vehicle before I have the buyback check from the previous.