As the automotive industry continues to shift towards electric vehicles, there has been a noticeable deceleration in EV sales. However, potential buyers may want to pay attention to a remarkable deal this year; some drivers could buy an EV for as little as $10,000.
The coronavirus pandemic has impacted EV sales in a significant way. Some industry analysts believe that the sales slowdown is due to consumers waiting for new models to hit the market. On the other hand, others assume it’s because of the shortfall in production brought about by the pandemic. Regardless of the reasons, a slump in sales often leads to price cuts, something that potential EV buyers can benefit from.
Further sweetening the pot, various federal and state incentives exist to encourage individuals to buy electric vehicles. These incentives often take the form of rebates or tax credits on the purchase of a new EV. The purpose is to spur adoption of these greener, more sustainable modes of transportation.
Specific to the United States, the federal government offers the Qualified Plug-In Electric Drive Motor Vehicle Tax Credit. This credit offers up to $7,500 in federal tax credit for buying a new qualifying electric vehicle. However, this credit begins to phase out for vehicles after a manufacturer has sold 200,000 eligible electric cars. Notably, manufacturers such as Tesla and GM already hit this cap. But, buyers interested in vehicles from other manufacturers might still stand a chance to avail this tax credit.
In addition to federal incentives, several states also offer extra incentives. For instance, in California, the Clean Vehicle Rebate Project provides a rebate of up to $4,500 for new battery electric vehicles. Meanwhile, states like Maryland offer Excise Tax Credit, which provides a credit of $100 for each kilowatt-hour of battery capacity of the vehicle, up to $3,000.
So, let’s say you buy an electric vehicle that costs $20,000. The federal tax credit grants you $7,500, and a state incentive grants you an additional $2,000. That $20,000 car now effectively costs you $10,500—an astonishingly good deal.
However, all potential EV buyers should note that these incentives are subject to certain conditions and eligibility criteria. Therefore, before making a decision, it’s crucial to do thorough research and understand what incentives apply specifically to them.
In conclusion, consumers interested in buying an electric vehicle within a tight budget must take advantage of this favorable buying opportunity. The combination of reduced prices due to the slowed EV sales, federal tax credits, and state incentives make it possible for some drivers to own an EV for as little as $10,000 this year. With affordable options like these, transitioning to sustainable transportation has never been more accessible.
