Getting charged up for a $10K EV rebate
If you are on the fence about that new Nissan Leaf or Chevy Volt, how does taking $10,000 off sound? That’s right, those thinking about jumping into the EV market could pocket a nice new incentive in the form of a $10,000 rebate, which is part of President Obama’s Fiscal Year 2013 budget plan.
While lacking in specifics, the proposal is a boost and a change in approach – buyers of electric vehicles currently are eligible for a $7,500 tax credit for the tax-filing year in which the vehicle is purchased, while the new rebate program would allow consumers to slice $10,000 off the top of an EV at the time of purchase.
It’s a big incentive for potential buyers who are scared off by the pricing of EVs, which are still a bit beyond the comfort zone of what many consumers are prepared to pay, even though their yearly savings at the gas pump will be substantial. It should also boost sales for vehicles such as the Chevy Volt and the Nissan Leaf. For example instead of making payments on a Volt, which lists at $41,000, a buyer would see that financing hit drop to $31,000. For the Leaf, the base price would drop to about $26,000 with the rebate.
It’s argued that the tax credit idea—a product of the Bush Administration—favors wealthy buyers who can more easily afford higher upfront payments in exchange for a lower tax rate in April. The Obama rebate makes EVs more accessible to the average American.
The rebate could also apply to natural gas vehicles and other high tech, green cars, according to reports.
Assuming Congress will go along with this, which is a major if given the parlous conditions there, it’s a great idea that’s a win-win-win for the makers, sellers and buyers of EVs. It’s also a big win for the environment, sustainability and energy independence. That’s a lot of wins.
It’s far from a done deal, but this could change a lot of minds about EVs, especially now that gas prices are spiking—again. For example under the rebate plan, a Leaf might be financed for about $300 a month, which is probably what many people have to scrape up each month for gasoline in their current driver.