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A few questions.
1. Will the $7500 fed tax credit still be available this year (2018)?
2. I took the credit on my current 2012, 7 years ago . Can I take it again on a new 2018 I'm currently looking to buy?
3. The max credit was $7500 is that 30% of the selling price of what??
Thanks in advance for your response.
Al
 

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A few questions.
1. Will the $7500 fed tax credit still be available this year (2018)?
2. I took the credit on my current 2012, 7 years ago . Can I take it again on a new 2018 I'm currently looking to buy?
3. The max credit was $7500 is that 30% of the selling price of what??
Thanks in advance for your response.
Al
GM hasn't exhausted it's credits yet but that will happen soon. If you buy a new Volt this year you will still be able to get the $7500 credit, if you wait until next year you will hit the phase out period and get a diminished credit, and then no credit at all. If I were you I'd get a 2019 not a 2018 because the 2019 has powerseats available and better regen braking. The 2019 also has an optional 7.2KW charger, I'd get that if it were cheap.
 

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#3 - No, the amount is based on the EV battery capacity.

It's a credit, so you will only qualify for the full amount if your Federal tax liability is at least this much. I'd personally buy it before the end of the year.
 

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I think it would be better to wait and purchase a 2019 with upgraded charging and power seats (if that stuff is important to you). After the 200,000th EV from a manufacturer is sold, the phaseout begins. At that point, throughout the rest of that quarter and all of the following quarter, the $7500 tax credit remains. After that it begins to fall. So if GM hit their 200,000th EV today (July 30), the $7500 credit would be available through the end of Q3 2018 and all of Q4 2018. By Q4 the 2019 model year cars will hopefully be coming to lots.

It's possible that they'll do what Tesla did to extend it by delaying their 200k car until the very beginning of a quarter so that they can maximize the time it's available.
 

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GM doesn't have the same level of control as Tesla because their dealers determine when a car is sold not them. However they can control how many cars they allocate to their dealers and at that level it does look like GM is doing what they can extend the credit. The reason that sales of Bolts has been lower than expected in the US is because GM has allocated more of their production to Korea and less to the US.
 

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I certainly hope that Congress will adopt the amendment to change the credit rules so as not to penalize the companies that have actually pushed the technology forward, like GM and Tesla.



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I certainly hope that Congress will adopt the amendment to change the credit rules so as not to penalize the companies that have actually pushed the technology forward, like GM and Tesla.



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I don't see how it can pass. The problem is that while the current law hurts GM it helps Ford and Chrysler. It also helps BMW, Toyota and Honda and even though they are foreign corporations from a manufacturing point of view they are just as American as GM, the only difference is that their plants are in the South and GM's are in the Midwest. If you are a Congressman who's lobbyist do you listen to? Keeping the status quo is the easiest thing to do so that's what will happen. GM and Nissan are hurt most by this, I don't think it will effect Tesla very much. The Model 3 get's more expensive by the week, the real base price is now around $60K and if you want AWD, which I think most people will want, then you are looking at $80K. A $7500 tax credit on an $80K car doesn't make or break the buying decision because it doesn't change the price category of the car, it's a luxury car with or without the credit. The problem for the Volt and Bolt is that they are priced at $40K, which is the near luxury category and they definitely aren't near luxury cars, they are very plain and don't offer the common features of near luxury cars like AWD, sun roofs, or until now power seats. The credit moves them down into the mid priced category where they fit better, without the credit they are really pricey for what they are.
 

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I think most forecasts suggest GM will cross the 200k threshold in August or September.

If that happens, the $7500 will last until December 31st, then it'll be $3750 for the first half of 2019 and $1875 for the second half, after which no GM car will get any credit (same as Tesla, who did cross the threshold in early July.)

If GM doesn't cross until after October 1st, they'd get each level for three more months.
 

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The problem for the Volt and Bolt is that they are priced at $40K, which is the near luxury category and they definitely aren't near luxury cars, they are very plain and don't offer the common features of near luxury cars like AWD, sun roofs, or until now power seats. The credit moves them down into the mid priced category where they fit better, without the credit they are really pricey for what they are.
You nailed it. For me, no tax credit, no Volt/Bolt. The value just isn't there without it. And there was still "it's kinda expensive but I want it anyway" so I will admit the Bolt was somewhat of an impulse purchase. No regrets though.

I could argue that the tax credit is a failed program if the purpose was to bootstrap the EV into a mass market vehicle. After 10 years nobody has come close to the $30,000 MSRP benchmark for a 200+ mile EV. Failed program? Sail off into the sunset.
 

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You nailed it. For me, no tax credit, no Volt/Bolt. The value just isn't there without it. And there was still "it's kinda expensive but I want it anyway" so I will admit the Bolt was somewhat of an impulse purchase. No regrets though.

I could argue that the tax credit is a failed program if the purpose was to bootstrap the EV into a mass market vehicle. After 10 years nobody has come close to the $30,000 MSRP benchmark for a 200+ mile EV. Failed program? Sail off into the sunset.
I wouldn't call it a failed program. A $40K 200 mile BEV represents huge progress, a Tesla Model S is over $100K. The Gen1 Volt only had 35 miles of range, the Gen2 is 53 miles of range and Gen1 was sold at a big loss, the Gen2 may or may not be profitable but it's at least close to breakeven, the Gen1 wasn't. The fact is that battery costs have come done at least 70%, I'd say the program worked. The question is if it's time to end it because we've reached the point where the market can take over. It may be that at this point that Tesla has the right strategy, target $60K not $40K but offer a car that's worth $60K. The problem with the Bolt is that it's a really ugly car and that it's interior can be generously described as spartan, it just doesn't look like a $40K car. A lot of whats wrong with the Bolt are just the result of having a bad designer, the fonts on the displays are horrible as compared to the Volt which uses the same hardware. But the hard plastics and the lousy seats were cost savings measures. If they had targeted $50K instead of $40K could they have built a car that much more luxurious that would have cost them a few thousand more to build but would sell for $10K more. With the subsidies gone GM will have to reconsider their approach. Eventually you can sell an EV at a Chevy price and make money, but that's probably not until 2025. For now the strategy should be to target the low to mid luxury market not the mid priced market, mid price is only achievable today with the subsidy.
 

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For OP:

I had planned to buy a Volt late next spring, due to personal transportation needs requiring an additional vehicle in the personal fleet. After guestimating when GM will hit 200k, guestimating IF there will be some sort of Congressional action to change/extend the program, I decided to pull ahead my purchase in order to ensure receipt of the credit. In addition, this tax year will be our highest tax liability year...and it is possible that our financial plan will result in less than a $7500 tax liability next year. Everyone's analysis is different, but for us, the pull ahead was the financially conservative and prudent thing to do.
 

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Rationalization is funny.
Tax credits on the front-end are offset by accelerated depreciation on the back-end. And the tax credit is also eroded by the higher sales tax on the new car. The real value is in the pre-owned car.
Just another analysis.
 

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Rationalization is funny.
Tax credits on the front-end are offset by accelerated depreciation on the back-end. And the tax credit is also eroded by the higher sales tax on the new car. The real value is in the pre-owned car.
Just another analysis.
I dont think you understand. This was not my reason whether to buy a Volt....that was a given. It was a matter of when to time the purchase.
 

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Your max tax credit exists after GM reaches the 200K mark (one quarter I believe). I would look into your state credit if Illinois has one as well as to if it's going to be around. While you could probably get a 2019 and still get all your credits/rebates, the amount you'll likely save on a 2018 may make that possibility moot. Prices/discount vary widely in the States so I would not be afraid to look widely as you can get it serviced locally (assuming a Chevy Volt dealer is local) if you by elsewhere.
 

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Rationalization is funny.
Tax credits on the front-end are offset by accelerated depreciation on the back-end. And the tax credit is also eroded by the higher sales tax on the new car. The real value is in the pre-owned car.
Just another analysis.
Some feel that with the passing of the tax credit, the value of the used cars will increase...so, there is that 8^) Hold on to your Volt/Bolt EV for long enough and its value will increase...like you're owing a classic car. LOL
 

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For OP:

I had planned to buy a Volt late next spring, due to personal transportation needs requiring an additional vehicle in the personal fleet. After guestimating when GM will hit 200k, guestimating IF there will be some sort of Congressional action to change/extend the program, I decided to pull ahead my purchase in order to ensure receipt of the credit. In addition, this tax year will be our highest tax liability year...and it is possible that our financial plan will result in less than a $7500 tax liability next year. Everyone's analysis is different, but for us, the pull ahead was the financially conservative and prudent thing to do.
Rationalization is funny.
Tax credits on the front-end are offset by accelerated depreciation on the back-end. And the tax credit is also eroded by the higher sales tax on the new car. The real value is in the pre-owned car.
Just another analysis.
I dont think you understand. This was not my reason whether to buy a Volt....that was a given. It was a matter of when to time the purchase.
I think what he was saying was that it would be more financially conservative and prudent to buy a pre-owned Volt when you're ready to do so regardless of whether or not the tax credit is in place.

I did buy a pre-owned Volt. However, it's not all about what is financially conservative and prudent because frankly if that was my only criteria I probably would have spent the same money on a used Corolla or Civic. They are a much less risky proposition than a used EV, - much more likely to go another 10 to 15 years without any major repair costs. But I wanted to dip my toes in the EV waters and so far I'm happy I did.
 

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Rationalization is funny.
Tax credits on the front-end are offset by accelerated depreciation on the back-end. And the tax credit is also eroded by the higher sales tax on the new car. The real value is in the pre-owned car.
Just another analysis.

I have to agree here. My 2015 was a $38k car. I just bought it off my lease for $16k 3 years later after having leased it for 3 years. With the money down and the monthly payments on the lease, I actually bought the car for about $7500 less than MSRP when it was new. The leasing company wanted $27k for it and had no plan to lower it directly, but the dealer I leased it through gave them a call and magically the price fell in line with what average Volts of my vintage, mileage and options have.

That is an ENORMOUS hit in a short period of time, one that the $7500 will barely put a dent in. I had the choice of buying a new 2018 or purchasing mine off lease. Like some others here, this will be a larger tax year for me, but there is a short game and a long game. If you need a car now, for sure, it makes sense, but keep in mind that the Volt, as much as I absolutely love the car, drops in value like a boat anchor. The money that I won't loose in depreciation will more than make up for the $7500 tax credit loss I will miss.

Everyone's situation is different, but the one constant variable is that Volts seem to loose around $7000/year on average based on options, etc over the first 3 years. It slows after 3, but as it slows, mileage goes up, ebbing away at your equity like Pac Man gobbling up dots.
 

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<snip>.
It slows after 3, but as it slows, mileage goes up, ebbing away at your equity like Pac Man gobbling up dots.
Yes, but, if you keep your Volt and drive it until you get to 450,000 as Sparkie has done, your Volt will keep giving you more and more dots...never ending. So, there is that:)
 
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