Aiming_4_55
Thinks s/he gets paid by the post
Curious if anyone is playing the Fed Tax credit game with PHEV (plug-in) cars? After the first year, sell or trade-in the car for about the amount of the rebate, so the net cost for the year is limited to sales tax paid.
Background: I'm in CA and PHEV cars qualify for the Fed Tax credit (up to $7.5k depending on battery size... so size matters). In addition, the PHEV cars qualify for single occupancy carpool sticker which can save time on the daily commute (important to me). There is a State Tax rebate too, but I'm not including due to income limits.
For example: I'm seeing 2018 Prius Prime Prem being net cost of $22.5k ($28.5k sale price -$1.5k rebate -4.5k Fed tax credit) or 2018 Honda Clarity for $23.5k ($31k sale price -7.5k Fed tax credit). Pricing does not include taxes or DMV fees. (Yes, I pay much more than $7.5k in Fed Taxes so I would qualify).
If I like the car, I would keep it, but I'm thinking each year or so, just upgrade to a newer model if the Fed Tax credit is available.
This assumes I'm just looking for a daily commuter, driving about 12k miles a year, most in the HOV alone. I have a weekend car for fun and DW has a minivan for family trips.
What am I missing?
Background: I'm in CA and PHEV cars qualify for the Fed Tax credit (up to $7.5k depending on battery size... so size matters). In addition, the PHEV cars qualify for single occupancy carpool sticker which can save time on the daily commute (important to me). There is a State Tax rebate too, but I'm not including due to income limits.
For example: I'm seeing 2018 Prius Prime Prem being net cost of $22.5k ($28.5k sale price -$1.5k rebate -4.5k Fed tax credit) or 2018 Honda Clarity for $23.5k ($31k sale price -7.5k Fed tax credit). Pricing does not include taxes or DMV fees. (Yes, I pay much more than $7.5k in Fed Taxes so I would qualify).
If I like the car, I would keep it, but I'm thinking each year or so, just upgrade to a newer model if the Fed Tax credit is available.
This assumes I'm just looking for a daily commuter, driving about 12k miles a year, most in the HOV alone. I have a weekend car for fun and DW has a minivan for family trips.
What am I missing?