Just to throw my two cents worth in.

I have an '05 FEH and love it and will probably wait till the next generation (will that be 2 or 3?) which is supposed to come out in '08.

I have had this one for almost exactly 1 yr and have almost 20k on it so by the time the '08s come out and they drop the prices 6 months later - it will be time to buy.

 

Regarding the qualification of an '05 FEH, purchased after 1/1/06, for the new tax credit, I think your best bet is to ask your local dealer to check with Ford. I believe (though i am not positive) that a hybrid qualifies for the new tax credit once the manufacturer certifies as such to the IRS, and the IRS "recognizes" that certification. I don't know if Ford has done that yet for the '05 FEH (it has for the '06).

I do know that it is possible for an '05 model year hybrid to qualify for the new tax credit rather than the old tax deduction: the '05 Honda civic hybrid qualifies for the new tax credit (i.e. if you purchase an '05 civic hybrid after 1/1/06 you can get the new tax credit rather than the old tax deduction).

So, if Ford has certified to the IRS that the '05 model qualifies for the new credit, and the IRS send out confirmation that it recognizes the certification, then you are good to go. Even if they haven't, that doesnt mean they won't later this year.

 

I just looked up the KBB retail price on an 05 4WD FEH, with standard options & 200 miles on it the excellent condition price is $29,745.00

Change it to 2WD & it is $28,480.00

I bought my 05 FEH with 20,000 miles on it for $20,500.00

~John

 

I saw the same thing...KBB is way off. Honestly you can get a new 06 for that price.

 

I agree, we never go by KBB where I work(I work in a car dealer)

~John

 

I still haven't decided whether to buy the new '05 FEH - I have an appointment with the dealer tomorrow - but:

1.) Thanks for all the hints, tips and success stories.

and

2.) I'm on hold with the IRS even as I type. I might soon have an answer to the tax credit question or I might just have "Swan Lake" running through my ears for the rest of my life.

 

Here's the IRS take according to Mr. Jacobs, who, by the way, was very nice and worked pretty hard to unearth the answer to the tax break for a new '05 FEH.

It qualifies for - nothing. If it would have been purchased in '05 it would have qualified for the tax deduction. However, an '05 purchased in '06 qualifies for zip. So I believe now I'm going to search for an '06 or hold out for an '07 - and take the bus as much as possible in the meantime. Unless, of course, the dealer offers me a multi-thousand dollar price break tomorrow. Color me doubtful.

Again, thanks for the help.

P.S. FYI, the latest FEH/Mercury Mariner tax info is in IRS bulletin 2006-56 issued April 7, 2006.

 

"However, an '05 purchased in '06 qualifies for zip."


CURRENTLY it qualifes for zip. As soon as Ford certifies the '05 Ford for the '06 tax credit, then it will qualify. Other '05 hybrids currently qualify for the '06 tax credit.

 

If they haven't by now why would they?

 

As for why they haven't done it yet...*shrug* because the rules for the new tax credit went into effect late last year, they were busy qualifying '06 and '07, and maybe it hasn't yet occured to whomever at Ford in charge of this that '05 hybrids were still being bought after 1/1/06.


As for why would they if they haven't already - because it is no cost to Ford to do this, and it is good PR. So why wouldn't they other than sheer laziness or stupidity?