So many posts about, will you still buy without EV credit [WARNING: NO POLITICS]

[sodamo]

The EV tax credit didn't make much of a factor in my decision to go EV. It would be nice to have, but I'll just save more money to put as a down payment instead.

Me either, but on an old Army pension (retired over 30 years small) and small SS it would have been nice. I am curious as to how the new auto loan interest deduction pencils out.my plan was to save and most likely pay cash, but might be advantageous to save and get a loan.

 

[Blackspots76]

Me either, but on an old Army pension (retired over 30 years small) and small SS it would have been nice. I am curious as to how the new auto loan interest deduction pencils out.my plan was to save and most likely pay cash, but might be advantageous to save and get a loan.

Knowing this administration and the Republicans, they'll probably figure out a way to make the auto loan interest deduction apply only to ICE vehicles. The only purpose that deduction has is to get people to buy more car than they can afford.

 

[KevinRS]

Knowing this administration and the Republicans, they'll probably figure out a way to make the auto loan interest deduction apply only to ICE vehicles. The only purpose that deduction has is to get people to buy more car than they can afford.

Since the interest thing only removes the interest paid from your taxable income, it may not amount to much. It is up to 10-22% of the interest paid that you would get back, depending on tax bracket.
Based on $27500 guess for the price, a $3000 down payment, about 2k tax, 2.8k title and registration, and a 60 month loan at 7%, you'd pay $1889.93 in interest the first year. in the 10% bracket that reduces your tax by $189. In the 22% bracket it would be $415. Nothing to leave off your 1040, but it shouldn't make or break your purchase decision.
Yes this probably will encourage people to buy cars they can't afford on long high interest loans, guess who probably lobbied for it?

 

[sodamo]

Since the interest thing only removes the interest paid from your taxable income, it may not amount to much. It is up to 10-22% of the interest paid that you would get back, depending on tax bracket.
Based on $27500 guess for the price, a $3000 down payment, about 2k tax, 2.8k title and registration, and a 60 month loan at 7%, you'd pay $1889.93 in interest the first year. in the 10% bracket that reduces your tax by $189. In the 22% bracket it would be $415. Nothing to leave off your 1040, but it shouldn't make or break your purchase decision.
Yes this probably will encourage people to buy cars they can't afford on long high interest loans, guess who probably lobbied for it?

And there is the otherside of this
there are some who might be considering paying cash for one reason or another, many those that are saving in anticipation. So when the time comes instead of taking that $24.5 out of your investment accord you borrow it as you stated. In addition to your costs/savings
taxes as stated above AND $24.5 earning % and compounding. Maybe something to pencil out. Am I plus $ at end of year? The %’s come into play. I don’t think the 60 months work as well as that benefit expires in end of 2028 I think.

 

[metroshot]

Since the interest thing only removes the interest paid from your taxable income, it may not amount to much. It is up to 10-22% of the interest paid that you would get back, depending on tax bracket.
Based on $27500 guess for the price, a $3000 down payment, about 2k tax, 2.8k title and registration, and a 60 month loan at 7%, you'd pay $1889.93 in interest the first year. in the 10% bracket that reduces your tax by $189. In the 22% bracket it would be $415. Nothing to leave off your 1040, but it shouldn't make or break your purchase decision.
Yes this probably will encourage people to buy cars they can't afford on long high interest loans, guess who probably lobbied for it?

Well said and appreciate the rough numbers.

Interest paid on car loans does not seem much since the standard deduction went up.

 

[EverythingSlate]

So, I got to thinking this morning if there is an existing 2-door small pickup on the market. As I thought I remembered, Toyota still offers the Tacoma in a 2-door cab with a 6' bed. Granted the cab is an "extra" cab with storage behind the seats. SR trim, 2WD, iForce engine w/ 8-speed auto, with tow package (3,500 pounds) is $33,725. Nissan makes the Fontier same configuration as the Taco, $33,560.

That's probably about the number, or slightly more for an extended-range Slate and wrap.

im disappointed in the fact that I agree with your logic (because the price keeps going up 😭)

 

[Luxrage]

"With the EV credit gone, there's other EVs that are more competitively priced!"

But I don't want any other EVs, I want a Slate.

If the Slate doesn't materialize or the price balloons out of proportion, I'll just stick to buying random ICE beaters. My Fit is not long for this world and I'm hoping it makes it to see the Slate launch. Fighting the urge for a pure-base model 2-door Bronco in green.

 

[jchetty]

Yes, I would still buy. The main reason is size. I have a Ford Lightning and it is just too big for certain tasks.

But the $7500 credit would help me decide to get the bigger battery. When I bought the Lightning, I received the $7500 credit, no sales tax, additional money from Ford/dealer. Even buying it from North Carolina and having it shipped to NJ, I saved a butt-load of money.

Remember the one, very big positive; the price is the price- this is one of the biggest game changers Tesla has offered. Being able to pay true sticker and not dealing with arbitrary mark-ups, junk fees, bogus dock-installed accessories will save us $$$

So basically, rebates/incentives will encourage customers to add-on features, we will still be saving money because we don't have to deal with dealer shenanigans- leading the buying process to be more pleasant.

 

[metroshot]

...........The main reason is size. I have a Ford Lightning and it is just too big for certain tasks.

But the $7500 credit would help me decide to get the bigger battery. .......

Agree - I had the Lightning for 1 year and it was way too large for my urban lifestyle.
Lightning would not fit in my single garage, found tight parking spaces, terrible U turn radius, constant worry while in middle of Los Angeles bumper to bumper traffic, and I never towed nor hauled anything.

After getting the $7500, I traded her in for a Mach E and have loved her since ($3750 tax credit).

Now, I am looking to replace her with a new Rally Mach E with magneride suspension and higher ride height for off road use.

Trying to find one before Sept 30 when the tax credits cease.

 

[RetiredOnPaper]

The legacy auto makers are on the same path they were in the 70s. They had to deal with rising gas prices, poor quality manufacture, and growing competition from Japan. If you had a problem with your car and went to the dealer for warranty work, you were told that it was due to the government mandated environmental and safety equipment. (Once out of warranty they usually were able to find and fix the problem. $$$) Now it's China. Companies like BYD are setting up to flood the world with super cheap EVs. With our head in the sand, we will witness the collapse of the legacy car makers. Your politics will not matter when this happens.

 

[granite_slate]

"With the EV credit gone, there's other EVs that are more competitively priced!"

But I don't want any other EVs, I want a Slate.

Exactly!

“Why get a Slate when you could get a Bolt for $blablablah?”

“Why get a Slate when the Maverick has four doors and you can get one for free?” (exaggerating, slightly)

I don’t want an ICE Maverick, and I have ZERO interest in a Bolt, I don’t care how cheap it is.
I’m sick of ICE maintenance/repairs on my daily drivers. The Slate is EV, speaks my diy language, and is just damn cool. It’s a vehicle I didn’t know I needed in my life until it was presented.
No tax credit? Meh. I’m still in, within reason, but I’m confident they’ll be able to keep it below my ceiling. Whether that ceiling makes sense to anyone else is irrelevant to me.

 

[Teach]

I read somewhere about the beautiful bill...

"...This means the credit will only be available for vehicles from smaller manufacturers in 2026..."

Will Slate qualify for this?

 

[AZFox]

I read somewhere about the beautiful bill...

"...This means the credit will only be available for vehicles from smaller manufacturers in 2026..."

Will Slate qualify for this?

A brief search found this (not verified):

[...] a provision in the bill allows the $7,500 credit to continue through 2026 for new vehicles from automakers that haven’t yet sold 200,000 qualifying EVs​

 

[sodamo]

A brief search found this (not verified):

[...] a provision in the bill allows the $7,500 credit to continue through 2026 for new vehicles from automakers that haven’t yet sold 200,000 qualifying EVs​

If true, I’d be very tempted to add $7500 of accessories

 

[AZFox]

If true, I’d be very tempted to add $7500 of accessories

If true, you've gotta wonder whether it expires on New Year's Eve 2026. 😧