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

[Letas]

The price of the truck hasn’t changed, just how Slate is expressing it.
The only change is whether pays total price or was hoping for $7500 paid otherwise , EV tax incentive.

Well we don’t even know the price of the truck, before or after incentive, so who’s to really say if it’s changed!

If they can find a way to squeeze out trucks at 24k, this thing will be an absolute hit.

 

[metroshot]

Not sure about the Slate for $27K when I could get an EV now till Sept 30 and capture the $7500 tax credit.

As a government worker and falling under the income cap, I deserve the tax credit.

Past 3 EVs, captured:

$4000 PHEV state rebate
$7500 Lightning EV credit
$3750 Mach E EV credit
$1200 EV charger & installation tax credit

Currently, I am looking at trading in for another Mach E for the $7500 before the end of Sept....

 

[Letas]

Not sure about the Slate for $27K when I could get an EV now till Sept 30 and capture the $7500 tax credit.

As a government worker and falling under the income cap, I deserve the tax credit.

Past 3 EVs, captured:

$4000 PHEV state rebate
$7500 Lightning EV credit
$3750 Mach E EV credit
$1200 EV charger & installation tax credit

Currently, I am looking at trading in for another Mach E for the $7500 before the end of Sept....

No kidding. If you are ready to purchase, but are waiting for the slate, you don’t actually care about the affordability. Take advantage while we have these credits!

 

[Blackspots76]

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.

 

[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.