Those thinking about jumping into the EV market might have a nice new incentive in the form of a $10,000 rebate, which is part of President Obama’s Fiscal Year 2013 budget plan.
The proposal is a boost and a change in direction – buyers of electric vehicles currently are eligible for a $7,500 tax credit for the tax-filing year, 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 might still be on the fence or scared off by the pricing of EVs, which are still a bit beyond the comfort zone of what many consumers are prepared to pay. 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 been said that the tax credit idea—a product of the Bush Administration—favors wealthy buyers who can more easily afford higher upfront payments for a lower tax bite in April. The Obama rebate would make EVs more accessible to the average American.
The rebate idea 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 big assumption these days, it’s a great idea – make your best deal at the lot and then slice $10K off!
It’s far from a done deal, but this could change a lot of minds about EVs. For example under the rebate plan, a Leaf might be financed for about $300 a month, which is probably what many people cough up each month for gasoline alone.
[Image credit: Leaf getting charge by Bill DiBenedetto]