Just when many new car buyers started considering EVs, the government has suddenly pulled out the rug from under some of those buyers, ending EV credits on some popular electric vehicles.
Most EV buyers — like Benjamin Affatato — are thrilled that they decided to buy electric.
"I love the car," he said of his new 2023 Tesla.
But pricing and tax breaks are becoming more confusing than ever before, frustrating buyers.
Tesla has lowered prices several times in recent months to boost its market share.
That left Affatato frustrated that his new Tesla was now worth much less than he paid.
"Two hours after I bought the car, it went down in price $9,000," he said.
Tesla would not give him any rebate or discount, as the contract had been signed.
But other potential buyers are facing another problem: a loss of the government tax credit they had been counting on to bring down the price of that EV by thousands of dollars.
Just because your car attaches to a plug doesn't mean it will get a $7,500 credit, or even the smaller $3,700 credit.
Why many EVs no longer qualify for a break
New federal rules just took effect April 18th that require an EV to be assembled in the US, and for 50% of its batteries to be sourced from the US as well, to get the full credit.
That helps GM and Ford, with vehicles like the Chevy Bolt fully complying.
However, other popular EVs are losing all or half their credits, at least until assembly or battery production is moved to the US.
Some EVs from Hyundai, Volvo, BMW, Rivian, Nissan, and Audi no longer make the list for a tax credit.
You can see the full list of eligible cars at www.fueleconomy.gov.
Confused? Everyone is.
Dealer marketing director Kevin Frye of the Jeff Wyler Automotivegroup said your best bet is to talk with your dealership.
"They communicate directly with the manufacturer to let you know which car qualifies and what are the best credits available to you," he said.
For instance, the Mercedes ESQ SUV is about to be produced in Alabama, which should allow its base model to get a tax credit.
As more cars and batteries start being produced in the US, look for more EVs to get tax credits.
But ask a lot of questions when car shopping, so you don't waste your money.
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