EV tax credit increase to $12,500 in Biden's latest proposal as of 10/28

[Trekkie]

I personally feel it's a fools errand to plan your vehicle purchase around the tax BS.

Buy what you want, if you get a 'bonus' at the end of the year, cool, if you don't, you still have the kick butt electric truck or SUV.

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[Aroohoo]

I personally feel it's a fools errand to plan your vehicle purchase around the tax BS.

Buy what you want, if you get a 'bonus' at the end of the year, cool, if you don't, you still have the kick butt electric truck or SUV.

While I agree in principle with this position, it does discount for those that are on the margin. For those that have the means not not worry about the extra money they save from the tax credit or don't care about the opportunity cost, this thought process probably works for them.

For those that are on the decision margin and the tax credit allows them to make the purchase, planning around it is critical.

I won't debate whether or not it makes financial sense to be considering buying a depreciating asset if you are cost sensitive to the point where a 10-15% cost change makes you think about not following through.

 

[CommodoreAmiga]

I personally feel it's a fools errand to plan your vehicle purchase around the tax BS.

That's insensitive and ignores that people have unique financial situations.

Not everyone can afford ANY vehicle. They may want XYZ but can only afford up to $$$. They try to get the best they can within that budget. $7,500 is enough spread to make an aspirational purchase not make sense, for some.

 

[Scott]

That's insensitive and ignores that people have unique financial situations.

Not everyone can afford ANY vehicle. They may want XYZ but can only afford up to $$$. They try to get the best they can within that budget. $7,500 is enough spread to make an aspirational purchase not make sense, for some.

The alternative argument is that if $7500 on an $80000 purchase switches it from affordable to non-affordable, it might not be a wise financial move to stretch that much to buy a car.

Personally I won't buy a car I can't buy with cash (I might finance because interest rates are dirt cheap, but I have to be able to buy it in cash if I want). But I admit to being extremely conservatively financially.


EDIT: I will add there are cases where you do want to plan around the incentive. For example, if you can afford two cars regardless of the incentives, but would think a different car provides better value if the Rivian lost its incentive. So cross shopping a cheaper car with the R1T and thinking the R1T is better, but not SO much better to be worth it without the incentives.

 

[DucRider]

Not everyone can afford ANY vehicle. They may want XYZ but can only afford up to $$$. They try to get the best they can within that budget. $7,500 is enough spread to make an aspirational purchase not make sense, for some.

Perceived value also comes into play, even if it is not a financial stretch.
We can "afford" any vehicle that doesn't venture too deep into 6 figures. But that is a number far higher than we would ever consider.
$7,500 will most definitely make difference on the go/no go call. The fact that we haven't made these kinds of purchases (equally functional options are available for far less) is a primary reason we could purchase without a real stretch. The jury is still out on this one.

 

[888tom888]

in my opinion, at the end of it all, there will be tax incentives available. What and how much they are is still to be determined. And I'm hoping that my Rivian will qualify for some amount of tax relief. The rest is pure speculation at this point of the game.

 

[Riv240]

yep, the ev incentives (or lack thereof) would sway me away from getting the R1S that I have a deposit on.

I also have a cybertruck tri motor early reservation, I’d rather have that on a perceived value perspective, especially if that one qualifies for the ev credit.

 

[pc500]

While I agree in principle with this position, it does discount for those that are on the margin. For those that have the means not not worry about the extra money they save from the tax credit or don't care about the opportunity cost, this thought process probably works for them.

For those that are on the decision margin and the tax credit allows them to make the purchase, planning around it is critical.

I won't debate whether or not it makes financial sense to be considering buying a depreciating asset if you are cost sensitive to the point where a 10-15% cost change makes you think about not following through.

I have bought a new Nissan leaf for the last 5 years. New year, new car. It costs me $3000 for a new car after credit and selling the old one.

Very interested in the rebate on a highly depreciating asset.

 

[Jehorton]

That's insensitive and ignores that people have unique financial situations.

Not everyone can afford ANY vehicle. They may want XYZ but can only afford up to $$$. They try to get the best they can within that budget. $7,500 is enough spread to make an aspirational purchase not make sense, for some.

I believe that’s where the the word “personally” comes
Into it. That’s how that person feels and yes there are other people.

 

[Aroohoo]

I have bought a new Nissan leaf for the last 5 years. New year, new car. It costs me $3000 for a new car after credit and selling the old one.

Very interested in the rebate on a highly depreciating asset.

That's like saying because the weather was cold today, global warming/climate change can't possibly be happening.

The data is that over time, cars as a whole have traditionally depreciated. I will admit that some cars actually appreciate in value (rare cars, etc). Perhaps we are at an inflection point where they no longer depreciate, but I doubt it. While I can't explain your experience for a Leaf every year, this past year has been crazy. I congratulate you on your good fortune.


Edit: I wrote this while walking the dog and realize that I may have misread it. If your intent was not imply that cars do not depreciate much or at all, I apologize for my haste response.

 

[Sgt Beavis]

You’d think Illinois two US Senators (Duckworth and Durbin) would stand up for their new EV plant. Ford does have their Explorer plant in Chicago but that’s not building an EV anytime soon.

Unfortunately, for Rivian, the two US Representatives, in their area, are both Republican. Those two have zero pull in this.

 

[R_1_T]

That's insensitive and ignores that people have unique financial situations.

Not everyone can afford ANY vehicle. They may want XYZ but can only afford up to $$$. They try to get the best they can within that budget. $7,500 is enough spread to make an aspirational purchase not make sense, for some.

How is that my problem?
Why should I, or anybody else have to subsidize somebody else's purchase (through tax credits)?
Wait until you you can actually afford the vehicle you want without stretching your financial situation to the limit. It's called being responsible.

I don't understand how people think the world owes them something.

 

[jjswan33]

How is that my problem?
Why should I, or anybody else have to subsidize somebody else's purchase (through tax credits)?
Wait until you you can actually afford the vehicle you want without stretching your financial situation to the limit. It's called being responsible.

I don't how people think the world owes them something.

That would be fine if no one got a tax credit but why should someone that wants a 74000 truck get a tax credit and someone that wants a 75000 truck get nothing.

I don’t think anybody owes me anything but want the same advantages as the next guy

 

[xyskis]

How is that my problem?
Why should I, or anybody else have to subsidize somebody else's purchase (through tax credits)?
Wait until you you can actually afford the vehicle you want without stretching your financial situation to the limit. It's called being responsible.

I don't how people think the world owes them something.

I agree with your general sentiments. However, almost everything is subsidized to some extent and subsidies alter behavior on the average. I don’t want to subsidize oil and gas but I also like my Costco hotdogs at $1.50 and use a fair amount of plastic at work and at home. The subsidy that was a possibility but then gone is painful, just like people don’t like missing out on a good deal.

 

[R_1_T]

That would be fine if no one got a tax credit but why should someone that wants a 74000 truck get a tax credit and someone that wants a 75000 truck get nothing.

I don’t think anybody owes me anything but want the same advantages as the next guy

I'd be fine with no tax credits at all.

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