I'm considering buying a plug-in in 2013 when they arive in my state. I'm trying to figure out how to use the $7500 tax credit to lower the monthly car payment. Is there a way to borrow against the $7500 deferred. Or get a loan from H&R block securing it with tax credit. I would like to finance 3200-7500-2500down leaving 22,000 financed. Otherwise too much monthly bill. Just purchased the Prius III and love it but long for more EV miles. I can't wait to be a two Prius car family. But I really need more of a rebate than an incentive. Wade
The federal tax credit for the Prius plug-in is $2500, not 7500. I just happened to receive my annual bonus last month, so I reduced the tax withholding on that by $2500 to get my money sooner. You could just reduce your regular withholding and have more money each month to put toward your payment. Also, don't forget destination charge, sales tax and other fees in your calculation (mine ended up being $35700 out the door).
The $7500 does not apply to the Prius. The Prius Plugin is more likely around $2500. It all depends on your tax situation too, you can't rely on the credit 100%, as you tax situation may change during the year. Don't buy the car relying on the tax credit. You can always use the credit to pay more on the car at once, or especially if you go through your credit union you possibly can re-finance the car to a lower payment with it, but it's only $2500 range. The Volt and the Leaf both get the full $7500.
PIP MSRP is $32,000 less $2500 = $29,500 Leaf MSRP from $35,200 less $7500 = $27,700 (Edmunds.com) But you have to make sure ahead of time that you will have $7500 Fed Tax to take advantage of the Credit.
Bottom line is that you have to OWE at least $7500 (or $2500) in federal tax for the 2012 tax year in order to get the full credit. If your filing for 2011 showed you owing that much, and your earnings and deductions are fairly consistent year-to-year, then you have a pretty good idea what you can expect next year. I am not a tax pro- consult your tax advisor.
Just to clarify for people that are not as well versed in taxes as they should be... Owe at least $7500 / $2500 is not that you had to pay that amount at the end of the year. It's that you had to pay that amount of federal income tax over the course of the year minus any refund or adding any additional amount owed at the end of the year. We were careful when buying the Plug-In, both my wife and my parents are on the title, and whom ever it helps better can take the tax credit next year.
and don't forget, if you go for the leaf, and you ave to go further tha 75 miles, you will have to take another vehicle. don't forget to look at volt as well.
