My Mom bought a Prius!

Question #2: She will definitely get the $3150 tax credit. Anyone who buys a new Prius before Sep 30th will get this credit. Afterwards the credit is cut in half until some later date.

 

<div class='quotetop'>QUOTE(Boxster...WRX...Prius? @ Sep 28 2006, 11:10 AM) [snapback]325038[/snapback]</div>

The salesman...

 

Salesman was right. Barring any AMT issues, she beat the Sept. 30th deadline for the FULL credit.

 

Since question #2 has been answered, I'll comment on question #1.

Good call on not buying the pre-paid maintenance.

 

<div class='quotetop'>QUOTE(Michgal007 @ Sep 28 2006, 08:16 AM) [snapback]325043[/snapback]</div>

Yup. And even if she missed the Sept 30 deadline for the full credit, she would still qualify for at least partial credit (I think it goes to 1/2 of the $3150 amount for the next quarter, and so on until 2nd or 3rd quarter of 07?), barring AMT.

 

<div class='quotetop'>QUOTE(Rancid13 @ Sep 28 2006, 12:38 PM) [snapback]325134[/snapback]</div>

What idiots in Congress set up the tax credit for hybrids as it is? You would think they would want more people to buy hybrids and thus reduce the dependance on foreign oil. So my question is why is there any deadline or point when it stops based on the number of cars put in service? If the Repug controlled Congress can give the rich one tax break after another why aren't they giving responsible citizens like us a tax break that actually benefits everybody by helping to have cleaner air and less dependance on foreign oil?

Write your Congressman! Actaully better, clean house this November. :angry:

 

Pre-paid maintenance - they tried selling it to me too but it's like putting your money in a bank at zero interest.

 

<div class='quotetop'>QUOTE(Boxster...WRX...Prius? @ Sep 28 2006, 07:45 PM) [snapback]325307[/snapback]</div>

No "if"
You are wrong

 

<div class='quotetop'>QUOTE(Boxster...WRX...Prius? @ Sep 28 2006, 04:45 PM) [snapback]325307[/snapback]</div>

There is a phase out, not a cut off, and it begins at the end of the first quarter after the quarter in which the 60,000th unit was sold.

 

Maybe this link will help with information on the tax credit:

http://www.fueleconomy.gov/feg/tax_hybrid_new.shtml

I was told Toyota reached the 60,000 mark this past spring, that the credit will be cut in half October 1. I verified the credit before purchasing the car. I may have bought it anyway, but when the tax credit put the price within a couple thousand dollars of a well equiped Corolla it was a no brainer.

 

<div class='quotetop'>QUOTE(billyboy @ Sep 28 2006, 02:49 PM) [snapback]325252[/snapback]</div>

Well, there are OTHER hybrids out there that will still qualify. I imagine Ford's Hybrids will continue to get the credit well into 2007, although you get the most credit for the most fuel efficient cars, and the Fords don't do as well as the Prius and the Hybrid Civic. Anyone know when Honda is going to, or perhaps has, reach 60k? It seems to me there are a lot more Prius around here than any other hybrid/

 

<div class='quotetop'>QUOTE(Michgal007 @ Sep 28 2006, 11:16 AM) [snapback]325043[/snapback]</div>

Isn't it on or before Sept. 30th ? Tax credit cuts in after in 3rd Quarter, right?

Also, I hope the IRS updates the list to include the 2007 model year very soon!

 

<div class='quotetop'>QUOTE(billyboy @ Sep 28 2006, 05:49 PM) [snapback]325252[/snapback]</div>

Because it gives other car makers, US and Foreign, an added incentive to produce hybrid cars with good gas milage. The better the gas milage of the car, the more free money their customers have.

The tax credit had two purposes. The first, which you picked up on, was to encourage consumers to buy hybrids. The second, which you apparently missed, was to encourage greater market penetration of hybrids. To get significant market penetration of hybrids, you need all the manufactures making them, not just one or two.

 

<div class='quotetop'>QUOTE(Marlin @ Sep 29 2006, 07:57 AM) [snapback]325511[/snapback]</div>

But that's not what will actually happen.

17 MILLION new vehicles are built & sold here every year. A pitiful 60,000 from each automaker is so small of a quantity, it is basically just a token gesture... a reputation booster. It doesn't foster a long-term commitment in any way. That's just a tiny quantity, like when a specialty model is offered.

To penetrate the market, large quantities are required. In the computer industry, it is typically a single company that leads the way. Those that help to force ahead with the new technology get rewarded. Everyone else follows in the wake of their success, without the need for any assistance.

Getting a tax credit long after hybrids become common doesn't really contribute to penetration. That work is already complete at that point. It is actually a subsidy to assist the automakers that didn't take the goal to reduce consumption seriously.

 

I'd tend to agree with John mostly here... it seems that, with the success Toyota and Honda had prior to the tax credit, hybrids were essentially "here to stay". Of course, it takes time to ramp up production numbers to something significant.

the tax credit does two things: it shows support for hybrid technology (which while good, is really only a political move by people who want to get reelected) and it gives Detroit a chance to get into the game a little easier. None of them had a serious effort in hybrids before the tax credit. Given the numbers everyone knew Toyota and Honda would sell this year, Their alotment would go by much quicker, and be phased out, while detroit has a whole year to market to people "hey, we've still got the full tax credit... come to us and save even more than you would with those other hybrids".

If the politicians really wanted to support hybrid technology, they'd make it even across the board... no phase out or limits for manufacturers, instead just have a firm end date for everyone. Or even better, no end date.

 

<div class='quotetop'>QUOTE(john1701a @ Sep 29 2006, 09:18 AM) [snapback]325521[/snapback]</div>

Bingo! Giving the tax credit for cars from manufacturers that are already selling them faster than they can make them doesn't help get more hybrids into the market. However, crafting legislation that shifts the incentive over time to manufacturers that haven't yet made it into the market gives those manufacturers an incentive to enter the market. Thereby growing the market. Thereby bringing hybrids more into the mainstream. That's a good thing, right?

 

<div class='quotetop'>QUOTE(billyboy @ Sep 28 2006, 05:49 PM) [snapback]325252[/snapback]</div>

If you look up idiot in the dictionary - It says see Congressman! :lol: