Do hybrid tax credits still make sense?
Tax credits have helped Altima hybrid salesThe Toyota Prius has not qualified for a tax credit in some time, yet demand far outweighs supply. The demand supply ratio is so out of whack that dealers are adding as much as $5,000 to the MSRP, in addition to thousands worth of dealer add-ons - and they are still selling.
Many other hybrid cars, such as the Honda Civic hybrid and the Toyota Camry hybrid, are selling as fast as they can be produced - also with dealer markups. While a few hundred thousand new hybrids will be added to the hybrid supply starting some time in 2009, if gas prices remain high, these hybrids will probably not just sell easily, but many will sell with dealer markups.
So, are hybrid tax credits still necessary? For what, to help justify dealer markups?
Hybridcarblog has been an advocate of hybrid tax credits for years, but isn't new thinking required? For example, perhaps the focus should be on plug-in conversions, EVs, or vehicles that achieve at least 80 mpg. Of course, it's hard arguing against hybrid tax credits when, unbelievably, gas guzzlers STILL qualify for small business tax incentives.
Nonetheless, should Congress create new hybrid tax incentives and, if so, what should be the focus?
Labels: honda civic hybrid, hybrid tax credits, Hybrid Vehicles, toyota camry hybrid, toyota prius
posted by Dahcredyns at
9:29 AM
6 Comments:
Seriously...as much as I would love to have a hybrid, only real suckers would buy one (or any car) with that much of a markup. I mean...what is someone's thinking process to make such a stupid move?
Tax credits still do make sense...why wouldn't they? Why reward the douchebags in hummers but not in a prius?
i'm not saying that hybrid buyers don't deserve to be rewarded, but all such credits can currently do is help subsidize the markups. that just seems ridiculous to me. of course, not as ridiculous as congress continuing to reward huge gas guzzler driving small business owners.
I see what you are saying. Indeed...credits going towards markups is remarkably retarded. Well...one way around it is not to buy a hybrid.
to me it seems the only way to achieve an equitable way to solve this problem is by taxing consumption, such as a gas tax. yet, even that isn't a perfect solution, as it will still take many years for automakers to develop enough fuel efficient autos to convert americans out of gas guzzlers into more efficient vehicles.
what sucks is that if automakers had spent as much effort trying to develop truly fuel efficient vehicles as they did trying to turn trucks into comfortable SUVs, this wouldn't be so much of a problem.
The tax credit is hot air! AMT knocks out probably 75% of all hybrid tax credits. All it does (as you can read by my tone) is piss-off people that allowed it to seriously influence their purchase. (aka - Uncle Sam screwed me out of $3000 with the retroactive Alternative Minimum Tax fine-print).
It and all other subsidies should be aborted. Its just justifying government bureaucracy and interfering with natural market forces. They turn economic logic into a shell game.
Not in their current form. Right now, any tax credit puts the burden squarely upon the consumer. You WILL pay a premium price and eventually get some of that money back in the form of a credit. The auto manufacturers will just make the same number of hybrids they do now and the prices get marked up bu dealers further penalizing the buyer.
Instead, provided the tax credit to the manufacturer for each unit SOLD. This will inspire them to make more, to sell more -- placing the burden (and solution) upon the manufacturer. This will increase production (in order to receive more credit, in other words: federal subsidies), which will reduce the option of dealers to mark up free profits ultimately resulting in lower prices for the buyers.
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