Full Tax Credit going at least through September

[naterprius]

Prius HH RX400h
Jan 7654 2263 1477
Feb 6547 2631 1803
Mar 7922 2987 2470
Total: 22123 7881 5750 35754


So, the sales numbers are in, only 35,754 Total Toyota/Lexus Hybrids sold for Q1. This guarantees that the 60,000 mark will not be hit in Q1 (since Q1 is over). Therefore, if they hit 60,000 in Q2, the full credit goes at least until Q3, that is, September 30th.

It may go until the Q4 if Toyota sells fewer than 24,246 Hybrids in Q2. (Doubtful).

I am curious, however, if the total sales counts leases. I think it does. Do the leases count towards the 60,000? They shouldn't, because lessees don't get the tax credit.

The credit may well live on through Q4 of 2006 or longer if this is the case.

No matter what, we are safe through September 30th, 2006.

Nate

[prius2006rocks]

AWESOME! I was wondering about that. Let's hope!

[ghostofjk]

Why are so few Priuses selling, compared to several 2005 months of near-10K/mo.?

[naterprius]

Who knows? Are they on the lots, with no buyer? If not, then I suspect lowered production, not lowered demand. If there are too many on the lot, then I suspect lowered demand.

Nate

[MtnTraveler]

I don't think demand is low. I've been waiting since Nov 5, or 5 months. Seattle area.

[Danny]

Thanks for posting that, Nate. I thought to do an analysis on the #s when they came out last week, but never got around to it. I've posted this info over on HybridScoop as well.

http://www.hybridscoop.com/2006/04/05/toyo...ull-tax-credit/

[Mardikes]

My guess is that these numbers represent leases, too.

Some investor is actually buying the car to lease to the consumer/lessee. Could be Toyota Financial or another investor.

The sale is to the investor, who is now the owner and has rights to the residual value at the end of lease term.

It is possible that Toyota Corporation is holding the paper themselves, but they usually dont' have an incentive to do so as the manufacturer, since they otherwise would not be able to book the sale for accounting purposes.

George

[mehrenst]

<div class='quotetop'>QUOTE(naterprius @ Apr 3 2006, 01:19 PM) [snapback]234276[/snapback]</div>

<snip>

I am curious, however, if the total sales counts leases. I think it does. Do the leases count towards the 60,000? They shouldn't, because lessees don't get the tax credit.

<snip>

Nate
[/b]

Well, technically a lease is a sale because the car changes ownership from the manufacturer to the lease company. I would expect the interpretation by the government of a sale is the title assignment. Also, there is nothing to say that the leasing company has to be a Toyota subsdiary. In fact, if you went to Hertz I'm sure they would do a lease for you. The main reason there is no credit allowed on leases is to keep leasing companies (and rental companies?) from racking up all those tax credits.