California Used Ev Purchase, Dealer Said I Could Claim $4,000 Tax Credit But Later Confirmed They Were Not Irs Registered

Hi everyone,

I’m looking for advice on how to handle a used EV tax credit issue with a California dealership.

I bought a used 2018 Tesla Model X from a dealership on May 31, 2025 for $24,500. Before buying, the salesperson verbally told me I would be able to claim the $4,000 used clean vehicle tax credit. That was a major reason I moved forward with the purchase because it made the effective price of the vehicle lower.

When filing my taxes to claim it, I found out the dealership was not registered with IRS Energy Credits Online at the time of sale. Because of that, they could not submit the required seller report, and the IRS confirmed the credit cannot be processed. The dealership later registered after my sale date, but the IRS rejected the retroactive submission because the sale date was before the dealer registration date.

The general manager reviewed it and said they found no written proof that the dealership represented the vehicle as qualifying for the credit. The salesperson who told me this is no longer employed there. I do not have anything in writing showing the tax credit promise, only what I was told during the sales process. I did keep the vehicle information, purchase documents, the IRS response, and the dealership’s emails.

I asked the dealership for a $4,000 reimbursement, price adjustment, or another fair resolution, but they declined.

I am now stuck with a vehicle that cost me $4000 more than what I planned based on what the seller told me or that vehicle would not have sold.

My questions:

1. Is this worth pursuing in California small claims court for $4,000?
2. Does a verbal statement from the salesperson matter if there is no written proof?
3. Should I file complaints with the California DMV, BBB, California Attorney General, or FTC before small claims?
4. Would a one time attorney demand letter be worth it for this amount?
5. Is there anything else I should do to strengthen my case?

I’m trying to understand whether this is realistically worth pursuing or if the lack of written proof makes it too difficult.

Thank you.

Location: Palo Alto, California