Beware of The Electric Vehicle $7,500 Rebate
I understand that during tough economic times people are thinking outside the box and trying to see what they can do to keep their heads above water. With energy cost seemingly at or near all time highs, along with the uncertainty of oil flowing from the middle east to nations such as ours that depend on foreign oil, many consumers are looking for alternatives to ease such tensions both internationally and in their wallets.
In the past couple of years the auto industry namely Chevy and Nissan have come out with their versions of electric cars that are directed for the middle class budget. Nissan came out with the Leaf which retails about $32,000 which is their base model. Chevy came out with the Volt which retails for about $40,000. The main difference between the two disregarding the price is that the Volt also has in it a gas powered engine which the Volt does not have.
To make the vehicles even more affordable there is the $7,500 rebate that is being offered for a limited time. When you see these cars advertised many times they mention the $7,500 car rebate. Which if you were looking at the base model of the Leaf you would expect to pay around $25,000 including the rebate offered on electric cars in the U.S.
However your assumption would be very much Incorrect. There are a few things that have not been mentioned that pertains to this rebate. First, the rebate is a tax rebate, meaning that you have to fill out your income tax return to qualify to get the rebate. So for you to leave with the car you have to pay the sticker price or there abouts. Also you car check will have to prepare and file your tax return and then wait two, three, or even more weeks to receive your tax return refund which will include the car rebate.
Secondly, it is not an automatic rebate. Meaning that not everyone qualifies to get the rebate. For a car buyer to receive the entire amount, they must have a income tax debt of $7,500. This is not an easy. National statistics reveal that only 50% of U.S. households do not pay income tax. So all those potential buyers could not even receive that rebate money because of their tax bracket.
So before you go to your nearest showroom to buy an electric vehicle check with your accountant first.