(WHTM) — Just when many new car buyers started considering electric vehicles (EVs), the government suddenly pulled out the rug, ending EV credits on some of the most popular electric vehicles.
Most EV buyers, like Benjamin Affatado, are thrilled that they decided to buy electric. But, pricing and tax breaks are becoming more confusing than ever before. Tesla has lowered prices several times to boost its market share. That has left Affatado, back in February, frustrated that his new Tesla was now worth much less than he paid.
“Two hours after I bought the car, it went down nine thousand dollars,” Affatado said.
But, now just because your car attaches to a plug does not mean it will get a $7,500 credit or even the smaller $3,700 credit.
Why? New rules that just took effect in April require and EV to be assembled in the US and for 50% of its batteries to be from the US as well, which helps GM and Ford.
Among those losing all of half their credits: some EVs from Hyundai, Volvo, BMW, Rivian, Nissan and Audi.
Confused? If you are, you are not alone.
Dealer marketing director Kevin Frye said your best bet is to talk with your dealership.
“They communicate directly with the manufacturer to let you know which car qualifies and which what are the best credits available to you,” Frye said.
For instance, the Mercedes Benz ESQ SUV is about to be produced in Alabama, which should allow it 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 for now, be careful so don’t waste your money.