Prius buying on hold until Jan. 1st?
Are you going to buy a Toyota Prius, but you want to wait until January 1st so that you can get a higher tax credit?According to a USA Today article, many hybrid buyers are doing the same.
Because the new tax credits for hybrid cars begin next year, many hybrid buyers are waiting because the tax credit is larger next year than this year. For example, the credit for a Prius now stands around $2000.00; however, next year that credit for the Prius could rise to $3150.00
This buying pattern has not been noticed in other hybrid vehicles, such as the Honda Civic hybrid, or even Toyota's Highlander hybrid.
Unforunately, the tax credit for hybrids like this vehicle are capped, so the new credit won't be around all of 2006 for the Prius.
If you don't care about the hybrid tax credit, now might be the time to find the best selection of Prii on your dealer's lot. After Jan. 1st, however, finding a Prius might be harder than ever.
Labels: hybrid cars, toyota highlander hybrid, toyota prius
posted by Dahcredyns @ 8:28 AM
2 comments
2 Comments:
Be careful in your use of the word "credit". I own a 2003 Honda Civic Hybrid. I received a $2,000. tax
"deduction" after purchasing the car.
Tax "credits" result in a dollar for dollar reduction of the tax owed.
A "deduction" results in a savings based on the percentage at which you are taxed. This is not like the energy tax credits of the early 1980's which were for solar power and wind generation sources. People might anticipate a greater savings than actually gained.
Bill,
That's a good point. I think the 'deduction' has been commonly referred to as a 'credit' because it's part of the clean vehicle tax 'credit'.
Yet, for the consumer it is a tax deduction, which will vary based on your income tax bracket.
Post a Comment
<< Home