As the United States enters the dog days of summer, electric vehicle sales are the only thing hotter than temperatures and inflation.
According to data compiled by Automotive News, EV sales skyrocketed 60% in the first quarter of 2022. The data revealed that in the first few months of 2022 alone, nearly 160,000 new electric vehicles hit the roads as more and more Americans chose to spare themselves from record-high gas prices in favor of battery-powered clean energy.
Fortunately for consumers, Tesla is no longer the only game in town – the latest offerings from manufacturers such as Ford, Hyundai, Kia, Toyota, and others give EV shoppers more options than ever before.
The EV Tax Credit
With the average price of an EV being approximately $10,000 more than the average price of a gasoline-powered car, according to a June 2022 report by the Wall Street Journal, electric vehicle ownership can seem out of the realm of possibility for many car shoppers.
Luckily, the United States offers a $7500 tax credit for all electric plug-in vehicles to help ease the pressure on consumers’ wallets. While the tax credit doesn’t affect the vehicle’s purchase price – it’s simply applied to your year-end tax bill based on your overall tax liability – it certainly is a fantastic perk of EV ownership. With interest rates and inflation inching higher and higher, it’s safe to say that all Americans wouldn’t mind more money in their pocket come tax season.
There’s a catch, though: once a manufacturer sells 200,000 electric-powertrain vehicles, they begin to be phased out of the tax credit. Nevertheless, it’s an incentive from the government to encourage the early adoption of these EVs, and it’s one of the many benefits of EV ownership alongside lower emissions, cheaper fuel costs, and more efficient fuel economy.
If you’ve been in the market for the latest Prius, Rav4 Prime, or other Toyota electric-powertrain vehicle, we have some bad news:
As of this month, Toyota sold its 200,000th electric vehicle and became the third automaker to no longer be eligible for the full $7500 tax credit.
Stay Away From Toyota
To put it plainly: it’s no longer financially savvy to purchase a new Toyota that utilizes an electric powertrain. Approximately 36% of American car buyers are considering purchasing an electric vehicle in 2022, according to a poll conducted by Consumer Reports.
If you are one of that 36% and are looking to pull the trigger on a Toyota EV based on the full tax credit being available to you – well, you’re too late. Toyota has joined Tesla and GM as the car manufacturers whose offerings are no longer eligible for one of the best incentives of EV ownership.
Just as recently as a few weeks ago, a new Rav4 Prime – Toyota’s plug-in hybrid SUV offering – could be purchased at less than $33,000 after the tax credit was applied, making it one of the more affordable options in the electric-powertrain world.
Today, the vehicle’s price is not as enticing.
Fortunately, there are still plenty of affordable options for car buyers in the market for electric vehicles. Ranging from sensible commuter vehicles to the next generation of American muscle, there are still plenty of EVs available that appeal to every type of car shopper – and the best part is they’re all eligible for the full $7500 tax credit
The Best Value EVs Currently Eligible for the $7500 Tax Credit
When it comes to combining state-of-the-art technology, performance, and safety, the following vehicles should be on the top of all EV shoppers’ lists.
These vehicles listed below qualify for the full tax credit, and the prices listed below are their respective MSRPs. The Nissan Leaf, for example, can be purchased for a net cost of about $20,000 after the tax credit is factored in, making it the most affordable way to ditch the gas pump and move on to the world of electric vehicles.
Keep in mind that eventually, the vehicles listed above will no longer be eligible for the tax credit. And while car manufacturers are crossing their fingers that the United States will lift the 200,000-vehicle cap in the near future, nothing is guaranteed.
Viewing the EV tax credit as essentially a “limited-time offer” gives savvy American car shoppers all the more reason to move forward with an electric vehicle purchase as soon as they can.
More Articles from the Wealth of Geeks Network:
This article was produced by Wealth of Geeks.
Featured Image Courtesy of Shutterstock.