"Last week, it was revealed that the automakers were working with their respective dealer networks on short-term programs that would allow customers to continue to receive the tax credit on leased EVs through the rest of the year. With the tax credit expiring on September 30th, Ford and GM were hoping to keep offering the discount to customers for a short while in order to buoy EV sales."
"While automakers including Hyundai and Stellantis have offered cash incentives to bridge the gap for buyers, Ford and GM took a different approach. They sought to buy EVs from their own dealers by having their finance divisions put down payments on all the electric models in their inventory before the tax credit expires. The dealers would then lease the vehicles to customers with a $7,500 discount baked into the price."
"But now that plan is essentially moot. GM dropped out first, on Wednesday, followed by Ford, Reuters says. GM opted to kill the plan after Republican Senators Bernie Moreno (R-Ohio) and John Barrasso (R-Wyoming) flagged the plan to the Treasury Department, calling it "a loophole" and "the total violation of Congressional intent by these nefarious actors." Even so, Ford and GM did clear their plan with the Internal Revenue Service, according to Reuters."
Automakers worked with dealer networks on short-term programs to let customers keep the EV tax credit on leases through year-end. With the tax credit expiring September 30, Ford and GM pursued a different approach than competitors offering cash incentives. Their finance divisions planned to place down payments on electric models in dealer inventory so dealers could lease vehicles to customers with a $7,500 discount. GM abandoned the plan first after Republican senators flagged it to the Treasury as a loophole and a violation of Congressional intent, and Ford followed. Both companies had IRS clearance. EV sales surged in July and August; experts expect sales to drop now that the credit expired.
Read at The Verge
Unable to calculate read time
Collection
[
|
...
]