$7500 EV Tax Credit? Not so Fast, Karen!

[oze]

I'm in the very early stages of shopping for a compact SUV. My 1st criterion is that the one I buy has to be fun (read: reasonably quick). I pretty much had things narrowed down to the Mazda CX-30, it's 2 slightly larger siblings, theCX-5 and CX-50, and the new Dodge Hornet.

But down the YouTube rabbit hole I went, and soon became enamored of the Mustang Mach-e. Out of my self-imposed price range, but with Uncle Sugar's $7500 tax credit, prices fall back in to what I have budgeted.

Upon further review, however, the new law, with its Byzantine requirements for country of final assembly and, more problematic, where the batteries' materials and components are sourced. Reading both the tree-huggers and car enthusiast sites, they believe that few EVs sold in America will qualify for the full $7500 credit.

I'm not complaining; I was only checking prices, and while I would love a Mach-e, I'm not willing to pay $50 grand for it. The marketplace at work. But I wonder how many other potential EV buyers this is going to turn away. I also understand the motivation; bring those jobs to the US. But mining for lithium? I don't see senile Joe nor his environmental wackos going for that.

 

[CallSign Snafu]

We got a CX-30 for my wife and we really like it so far.

 

[Pepi]

I've got ENUFF headaches in my life

 

[oze]

We got a CX-30 for my wife and we really like it so far.

Definitely like that 325 lb/ft of torque at 2400 RPM!

 

[Hop]

SUV & quick don't really go together in the same sentence very well.

I got as close as I could to quick & bought a Porsche Cayenne Turbo. ~500 HP ~500 Tq. yet still 22-23 mpg highway. Like most SUV, it's heavy. I think they can do a mid 13 second quarter mile which is slower than my BWM car was. It does handle surprisingly well though.

There's a hybrid Cayenne version that can drive ~20 miles on battery only. I test drove one. ~380 HP on that one. Still pretty "quick" for an SUV.

If you don't mind a bit extra $ for parts & labor, or do your own repairs, look into the Cayenne. They were the best bang for the buck I could find on the used car market right now. Everything else I looked at was substantially more $$$.

 

[Twangbanger]

I'm in the very early stages of shopping for a compact SUV. My 1st criterion is that the one I buy has to be fun (read: reasonably quick). I pretty much had things narrowed down to the Mazda CX-30, it's 2 slightly larger siblings, theCX-5 and CX-50, and the new Dodge Hornet.

But down the YouTube rabbit hole I went, and soon became enamored of the Mustang Mach-e. Out of my self-imposed price range, but with Uncle Sugar's $7500 tax credit, prices fall back in to what I have budgeted.

Upon further review, however, the new law, with its Byzantine requirements for country of final assembly and, more problematic, where the batteries' materials and components are sourced. Reading both the tree-huggers and car enthusiast sites, they believe that few EVs sold in America will qualify for the full $7500 credit.

I'm not complaining; I was only checking prices, and while I would love a Mach-e, I'm not willing to pay $50 grand for it. The marketplace at work. But I wonder how many other potential EV buyers this is going to turn away. I also understand the motivation; bring those jobs to the US. But mining for lithium? I don't see senile Joe nor his environmental wackos going for that.

My understanding of Uncle Sugar's new Inflation Act* is that corporations who lease fleets of vehicles got a bit-o-honey inserted in the legislation, so that if you lease the vehicle, rather than purchase, it totally gets you around the country-of-origin stipulations and the subsidies still apply. And it's not just limited to fleet customers.

If not owning is an option to you (I'd probably have no interest in owning an EV "fur life") and "Cash for Clunkers Ethics" is agreeable to you, "now do lease" and see if the numbers on your Slot Car-of-choice become more favorable. I heard some places are passing the full value of the Sugar Subsidy on to lease customers.

(*or Infrastructure Reduction Act or whatever it's called)

 

[oze]

My understanding of Uncle Sugar's new Inflation Act* is that corporations who lease fleets of vehicles got a bit-o-honey inserted in the legislation, so that if you lease the vehicle, rather than purchase, it totally gets you around the country-of-origin stipulations and the subsidies still apply. And it's not just limited to fleet customers.

If not owning is an option to you (I'd probably have no interest in owning an EV "fur life") and "Cash for Clunkers Ethics" is agreeable to you, "now do lease" and see if the numbers on your Slot Car-of-choice become more favorable. I heard some places are passing the full value of the Sugar Subsidy on to lease customers.

(*or Infrastructure Reduction Act or whatever it's called)

I saw that, and it's up to the dealer whether they want to pass the $7500 on to consumers. I've never leased, so that would be a big step out of my comfort zone, especially having to keep one eye on the odometer. But I can also see how technology, especially battery technology could change drastically in 3 years, so there could be an advantage to leasing.

 

[Ingomike]

Actually leasing is the only way to go with an EV in my thinking. We know that batteries degrade whether used or not, so it is unquestionable that it will devalue fast and is not a long term option. Look at the residual cost to determine what the leading companies believe it will be worth at the end of the lease, that will give you an idea of what the bean counters believe the car you bought will be worth also…

 

[Twangbanger]

Actually leasing is the only way to go with an EV in my thinking. We know that batteries degrade whether used or not, so it is unquestionable that it will devalue fast and is not a long term option. Look at the residual cost to determine what the leading companies believe it will be worth at the end of the lease, that will give you an idea of what the bean counters believe the car you bought will be worth also…

I want to drive a vehicle until the wheels fall off. Simple experience with things like cell phone batteries makes EVs a turn-off for me. Engineered obsolescence, backed-up by environmental and supply-chain constraints. It's no wonder the car companies are turning on to the EV concept. They hate people like me