The Bright-side of the EV Tax Credits Going Away

[GaRailroader]

Depreciation. I do believe EV depreciation will slow down some with the EV tax credits going away. Scenario 1. Think of the person that doesn't qualify for the tax credit, he/she pays $7500 more than other buyers for the same EV and loses that $7500 as he/she drives off the lot. Scenario 2. Let's say you go out and buy a used Tesla for $27k. A few months later it has depreciated to $25k, wait now it is eligible used EV tax credit and the value is now $21k. Since you aren't the original owner, your particular vehicle isn't eligible for the tax credit so you have to eat the $4k depreciation since so many other vehicles of the same vintage are still with the original owner and they can sell them for $25k where the buyer only pays $21k and Uncle Sam makes up the difference.

Having the Slate eligible for both of the tax credits(new and used), it would depreciate to $13,500k on day 2 of ownership assuming a $25k starting price. We would have been better off pairing up where you buy the vehicle configured the way I want it and I buy the vehicle configured the way you want it. On Day 1 we buy our vehicles for $17.5k, on day 2 we sell our vehicles to each other for $13,500 and Federal government kicks in the other $4k. Now we are both the 2nd owner of our Slates and we paid $13,500 plus tax, tag and delivery.

 

[sodamo]

Depreciation. I do believe EV depreciation will slow down some with the EV tax credits going away. Scenario 1. Think of the person that doesn't qualify for the tax credit, he/she pays $7500 more than other buyers for the same EV and loses that $7500 as he/she drives off the lot. Scenario 2. Let's say you go out and buy a used Tesla for $27k. A few months later it has depreciated to $25k, wait now it is eligible used EV tax credit and the value is now $21k. Since you aren't the original owner, your particular vehicle isn't eligible for the tax credit so you have to eat the $4k depreciation since so many other vehicles of the same vintage are still with the original owner and they can sell them for $25k where the buyer only pays $21k and Uncle Sam makes up the difference.

Having the Slate eligible for both of the tax credits(new and used), it would depreciate to $13,500k on day 2 of ownership assuming a $25k starting price. We would have been better off pairing up where you buy the vehicle configured the way I want it and I buy the vehicle configured the way you want it. On Day 1 we buy our vehicles for $17.5k, on day 2 we sell our vehicles to each other for $13,500 and Federal government kicks in the other $4k. Now we are both the 2nd owner of our Slates and we paid $13,500 plus tax, tag and delivery.

I doubt the “free money” crowd will appreciate your logic. All they care is they lost out.

 

[Duke Slater]

You’re a glass half full type of guy. I like it lol

 

[AZFox]

In this AZFox And The Grapes story the sour grapes are the fact that the rebate is a moral hazard because it saddles future generations with extra federal debt.