4xe - $12,500 proposed tax credit stopped my purchase

[Kurlon]

That’s the problem with these stupid programs…manufacturer’s will just raise prices….Congress isn’t smart enough to plan for that issue….

There is a price cap on the proposed rebate, cars cap out at $55k, trucks cap out at $74k. There is also an income test too, $400k max that doesn't exist for the current program. The Senate voted on a amendment last month that is tougher, $100k income limit, hard $40k cap on the vehicle cost. Who knows what'll ultimately happen.

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[Kurlon]

don’t all manufacturers bake the credit into the price already? I know Tesla does.

Tesla hasn't been eligible for a couple years now.

 

[Dkretden]

I personally think, they will bake that $5k into that jeep by next year. So buying it now might be cheaper then waiting.

I believe this to be correct.

 

[Dkretden]

There is a price cap on the proposed rebate, cars cap out at $55k, trucks cap out at $74k. There is also an income test too, $400k max that doesn't exist for the current program. The Senate voted on a amendment last month that is tougher, $100k income limit, hard $40k cap on the vehicle cost. Who knows what'll ultimately happen.

Interesting.

I have been very surprised that there wasn’t some “cap” previously.

 

[Obispo325]

I personally think, they will bake that $5k into that jeep by next year. So buying it now might be cheaper then waiting.

Seems like a lot of people on here have no issues buying multiple expensive Jeeps every year or two (or less). If I could, I’d probably buy one now, get the rebate that is currently in place, and then trade it in and buy another one next year if it’s a better rebate. I mean, why not? You could potentially get $20k in rebates in two years.

 

[WXman]

How does this tax credit work exactly? At what point do you get the money? After you file in the spring? At time of purchase?

 

[brennaman]

I don't think EVs can take over 50% market share with li-ion batteries. They make sense for a lot of people but no where near a majority of us as they stand right now.

Our elected "leaders" vision of whatever percentage by whatever year is just talk. They know it can't be accomplished. If we are to migrate over to electric vehicles as fast as they want, we need to start building power plants to power all these cars, and start real quick. California barely has enough electricity to power their homes. Think if all those cars driving around out there were having to take electricity out of the grid. Never work. But hey, it sounds good, and that is all that really matters right?

 

[GATORB8]

How does this tax credit work exactly? At what point do you get the money? After you file in the spring? At time of purchase?

Tax time it's a direct reduction in tax liability on a purchase. Currently, at least with CCAP leases, the finance company gets the credit, then applies it as a rebate, reducing capitalized cost.

 

[WXman]

Tax time it's a direct reduction in tax liability on a purchase. Currently, at least with CCAP leases, the finance company gets the credit, then applies it as a rebate, reducing capitalized cost.

I was wondering how CCAP leasing worked with that. So do they give 100% of it back as a rebate? Does that alter the monthly payment?

 

[GATORB8]

I was wondering how CCAP leasing worked with that. So do they give 100% of it back as a rebate? Does that alter the monthly payment?

Yes, and Yes Significantly.

In a lease, you only pay the difference between Cap Cost and Residual Value (plus interest/fees/taxes). The residual is a set percentage of MSRP, so reducing cap cost is a direct savings to the lease costs, so you'll realize the entire 7500 savings plus interest during the lease term.

Just the $7500 alone is a reduction of monthly lease payment of $208/month on a 36 month lease before even factoring the interest savings.

All the 4xe lease deals are good, but a lower MSRP Sahara gets to be awesome. Talking $400 ish payments for mid $50k MSRP.

 

[OutlawBeard]

Seems like a lot of people on here have no issues buying multiple expensive Jeeps every year or two (or less). If I could, I’d probably buy one now, get the rebate that is currently in place, and then trade it in and buy another one next year if it’s a better rebate. I mean, why not? You could potentially get $20k in rebates in two years.

Thats what I'd do

 

[Echo4papa]

Between the rising base price of the 4xe and the craziness of the used market drifting down, I think I picked up my 4xe at just the right time.

 

[entropy]

People buying Teslas and JLs shouldn't need a damn tax credit. I am sick of paying for other people's toy cars. That POS 4xe doesn't even get better mileage than my gas engine Camry. I took it on a road trip (the Camry) recently and got an avg of 46mpg. That's a gasoline car that goes 0-60mph in about 7 seconds, not a super fast car, but very very efficient.

I don't get any tax credit for the Camry. This thing is dumb af.

 

[OutlawBeard]

People buying Teslas and JLs shouldn't need a damn tax credit. I am sick of paying for other people's toy cars.

It's not for people's toy cars, it's for the adoption of EV and saving the environment. Tesla hasn't had a tax credit in years, and I don't think we get one for GM vehicles anymore or not, if we do its definitely reduced.

 

[cmdonnell]

don’t all manufacturers bake the credit into the price already? I know Tesla does.

Tesla doesn't get a federal tax credit anymore (neither does GM) - I can't remember if they still get the rebate that NJ offers, but I think they do.

That's one of the reasons we ended up getting a Mini as our electric car - we also like Minis and it's cheaper in general either way.

Some of the various proposals might reinstate Tesla, but they have ended up having various other caps that could have affected us so we decided to just order now rather than to wait on congress to potentially change incentives.

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