"Incentives for saving the planet starting to fade
By Vaughan Freeman
WORTHINESS aside, the incentives for motorists to “go green” are fading. Power-shift grants designed to encourage drivers to adopt more environmentally sound cars such as hybrids are no longer available and repair costs are high.
In America, grants of up to $3,150 (£1,700) will disappear altogether next year for Prius buyers as the carmaker has reached its 60,000 sales limit for the federal tax break.
The Prius is the best- selling hybrid car in Britain and America, with a battery- powered electric motor for emissions-free city driving and a small petrol engine. UK sales are greatest around London as, exempt from the congestion zone charge, the car can save drivers some £2,000 a year . . ."
Yeap, without the tax credit, nobody will want one . . .
Remember, the goal is to reach the editor and fact checker.
Besides, people still bought hybrids back when they had only a $2,000 deduction (not credit), which amounts to a whopping $600 savings. I've read in the rumor mills that the 2008 Prius will be even more efficient and less expensive. Who needs the freakin' credits?
Buyers of used hybrids, like me, have never seen a tax benefit. We just have to get by with the fuel and insurance savings. When I finish my oil studies, maintenance savings too. Darn, darn, darn, and I'm not even a Libertarian.
Hybrids will continue to sell. Just not at the same pace, then again what does a used Prius go for these days? Gas does keep going up as well.
I feel these sales limits are just like levies on Chardonnay. A forceful shift towards domestic product.
We going to see more hybrids on the road, they'll just have different emblems from what we're used to.
Hybrids: 2006 Honda Civic Hybrid, 2007 Toyota Highlander Hybrid
Posts: 709
Re: Bye-bye tax savings, so long hybrids . . .
Without a doubt, demand will drop as the federal tax credits go away. I don't really know if this will affect the numbers sold since it is totally supply limited at this time., but dealers may even have to start selling the Prius at MSRP.
Who bought a hybrid JUST because of the tax credit? I know several owners, and none of them did that.
The telling month will be July 2007, when the Federal tax credit expires.
Will be interesting to see what the states do.....ie, will some of them enact tax breaks to "replace" the missing Federal tax break? Or will they assume that if the tax breaks are killed by the feds, then they are thus bad policy?
VVVVERRRRRYYYYYY IINNNNNTTTTEEERRRREESSSTTTIIINNNNNGGGG to see !!!
While I was more than happy to take advantage of the tax credits. ;-)
At some point in time Hybrid technology will have to sink or swim on it's own. The market will ultimately dictate the success of hybrid technology.
The tax credits do serve an initial purpose of helping to get the early adaptors on board, but to become mainstream the technology has to compete heads up.
The question I don't have an answer to, is when is the right time to pull the credit?
Bye-bye tax savings, so long hybrids . . .
Re: Bye-bye tax savings, so long hybrids . . .
