Why no tax credit for used Prius?

<div class='quotetop'>QUOTE(Victorria @ Jul 25 2006, 05:33 PM) [snapback]292291[/snapback]</div>

The tax credit is only for new cars. The incentive was to sell more new hybrid cars, and try to "erase" the higher price that hybrids generally get when new. In the case of the Prius, you can buy a Package 3 for about the same as a Corrolla when you consider the tax credit; otherwise, you're paying about a $3,000 premium for the extra Prius features (I think its worth more than the Corrolla, but that's an individual choice.)

I think we could have saved our tax funds, as higher gas prices have created more demand for hybrids, even without the tax credit.

 

it's to ensure that there is no more than 1 tax credit claimed per car

 

It's for new cars to try to get more hybrid cars on the road.

Of course, the current credit is to get more American cars on the road, since Toyota has already used up their 60,000 car allotment. So it is supposed to now encourage people to buy American hybrids....which are all SUVs (and a truck).

Somehow, I don't think the lack of a tax credit is going to shift a huge amount of the hybrid buying market from Toyota. I think the Prius will continue to sell well. Too soon to tell on the Cambrid. Basically they're selling them as fast as them make them. Now they need their suppliers to provide more parts so they can build them faster. And faster. So far we don't know how many they need to make to meet the demand, I.E. until there are no waiting lists. I imagine as the price of gas continues to climb, so will the demand.

 

<div class='quotetop'>QUOTE(Godiva @ Jul 25 2006, 08:34 PM) [snapback]292385[/snapback]</div>

Well, keep in mind that there isn't a 60,000 credit allotment. The quarter after the manufacturer sells 60,000 hybrids people start getting less of a credit. So starting September 1st people buying new Prii will get a $1575 credit instead of a $3150 credit.

 

<div class='quotetop'>QUOTE(archermoo @ Jul 25 2006, 11:14 PM) [snapback]292407[/snapback]</div>

Yes, I know that. And it will go down every quarter.

But Ford and GM haven't reached their 60,000 yet. That was the point I was making. When there is 0 credit for the Prius, Ford and GM will probably still be working on their first 60,000. But the Prius will still be outselling them.

 

Besides the Big 3, Honda still has awhile to go before hitting 60K and Nissan's hybrid Altima isn't shipping yet. There are plenty of other manufacturers which have no hybrids on the market yet so they've all got an opportunity.

 

<div class='quotetop'>QUOTE(Victorria @ Jul 25 2006, 07:33 PM) [snapback]292291[/snapback]</div>

Primarliy the incentive was provided to get a greener car in circulation -- there is no need to provide incentives to circulate greener cars. Although I agree that those who are buying used hybrids are supporting the cause and deserve some commendation and accolade.

I tip my hat with a respectful bow.

 

If we could swing the tax credit for buying a used Prius, then we could all pair up here on PC and sell our cars to each other, then the following year, sell them back...

 

you cant get the tax credit because your Prius was sold second hand/used. The tax credit is for NEW purchases only.

 

The expectation is somewhat that you would save on the used one b/c the original owner saved on it when it was new. However, b/c the world works on supply and demand...and used hybrids are scarce, prices stay high.

 

<div class='quotetop'>QUOTE(archermoo @ Jul 25 2006, 11:14 PM) [snapback]292407[/snapback]</div>

Correct me if I'm mistaken but doesn't it change October 1st?

 

<div class='quotetop'>QUOTE(Starfall @ Jul 30 2006, 07:36 PM) [snapback]294775[/snapback]</div>

I'm also under the impression that itchanges Oct 1st. Who can post a link to the REAL info about the tax credit?

 

<div class='quotetop'>QUOTE(Rand Reed @ Jul 30 2006, 07:47 PM) [snapback]294785[/snapback]</div>

Additionally, doesn't the tax credit apply to MY06 cars only?

If this is the case, all cars sold after 09/30/06 will likely be MY07, anyway, so the tax credit issue should be a moot point by then.

 

<div class='quotetop'>QUOTE(rudiger @ Jul 30 2006, 08:07 PM) [snapback]294791[/snapback]</div>

Absolutely not true for the Federal Credit. It has nothing to do with the Model Year, only when it is sold relative to the number the Manufacturer has already sold.

State/Local credits may be different.

 

<div class='quotetop'>QUOTE(Tempus @ Jul 31 2006, 10:16 AM) [snapback]295054[/snapback]</div>

So you can not sell the car to a friend and he or she gets a tax credit, who sell it back to you and you get a tax credit and you sell it to another friend for the tax credit and they sell it back to you for the tax credit, and so on. It's like the numerical equivalent for Pi, it goes on forever; 3.1416....1416........... Ed

 

<div class='quotetop'>QUOTE(Starfall @ Jul 30 2006, 04:36 PM) [snapback]294775[/snapback]</div>

Yup, my bad. End of September is the end of the quarter after Toyota topped 60,000 hybrids sold.

And my understanding is that the tax credit requires a) that the car be new, B) that it be sold in 2006, and c) that it be on the list of approved cars. The 2005 and 2006 model year Priuses are on that list. Other model years of Pirus are not.