According to several news agencies, because many of the benefits offered to car owners who chose to purchase hybrid and fuel-efficient vehicles during 2011 expired, consumers were quite confused as to what cars still qualified for the incentives previously offered.
Experts say that since rules are still complex and not all incentives apply to all models of efficient vehicles, the program can be quite ambiguous and, for that reason, the responsibility of breaking it to the consumer whether the vehicle he or she is about to purchase qualifies for any tax incentives lies with the dealership. According to specialists, consumers should ask dealers about the models that qualify for federal or regional rebates before purchasing the vehicle. Before purchasing the car, consumers are also encouraged to ask dealers if the vehicle being purchased was registered in the dealership’s own name. If that’s the case, the dealership must sell the vehicle as used.
Savvy consumers must keep in mind that shopping for an advanced-technology vehicle is not a simple task. Consumers must do their homework and research all information related to the vehicles they are looking into purchasing before heading out to the dealership. Consumers must also research the available tax credits associated with some of these vehicles.
One of the things that drivers must remember is that credits cannot be passed on. Vehicles that are sold after being used as loaner or demonstrators cars that were registered under the dealership’s own name, like new Volt vehicles, will most likely not be eligible for the Volt’s $7,500 federal tax credit, since the credit was already linked to the dealership’s name and credits, as we’ve noted before, cannot be passed on.
Because only original registered owners of the new Volts can claim federal tax credit, some shoppers may feel like purchasing a Volt may not be the best of deals since they will not be able to claim the tax rebate if the vehicle was first registered under the dealership’s name.
Used Electric or Hybrid vehicles are not eligible for any federal rebate, since only original owners can claim the credit. Knowing this can be quite useful, according to experts. Consumers can use this knowledge to bargain and ask for discounts when the time has come to purchase a used hybrid or EV.
Consumers are urged to learn more about all the tax credits and how they work before contacting a dealership. To read the full article and get acquainted with the tax rebates a Hybrid or EV owner is entitled to receive, click here for the full article.