The tax credit in the USA would end December 31st, 2025. Here’s what that means.
TL;DR: EV cars & SUVs will face an average 16% effective price increase, with the lowest cost model up more than 28%, if the law goes into effect as written.
The tax credit in the USA would end December 31st, 2025. Here’s what that means.
TL;DR: EV cars & SUVs will face an average 16% effective price increase, with the lowest cost model up more than 28%, if the law goes into effect as written.
I think repealing the credit may not raise the price very much. If the government is offering a credit, wouldn’t sellers simply raise their price to absorb the credit while the buyer thinks they’re getting a deal? Without the credit, sellers may be motivated to reduce the price while still making money on the sale.
I saw this in action when I purchased a used EV recently. My choice, which didn’t qualify for the credit, was interestingly cheaper than comparable cars that did. Seemed about one tax credit cheaper for some reason. Could be a coincidence.
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I think I’m seeing more and more EVs in my city as time goes on. EVs get a special plate so it’s easy to see. Demand is increasing. We use Ford Lightnings at work, and guys in other trades seem envious. Another example, the mustang EV outsold the gas powered this year. I think that trend will continue.
Nice! Color me jealous, I drive an ICE truck, I test-drove a Lightning, it was very nice.
Rn, I think it’s something like 8% of new vehicle registrations per year are EVs. It’s about double that in Europe, and triple that in China (14% and 25%, I think).
So, growing, but if it grows much slower, we’ll be at the back of the pack, and I think being in the lead on this will keep our auto industry competitive for global exports, which are a big chunk of our export economy.