Why no tax credit for used Prius?

[bojojohn]

As the title states, why has the government made a decision not to give a tax credit for those of us who have bought a used Prius? Aren't we still doing the earth a service by driving a hybrid? I think the law is extremely unfair. Does the tax credit happen only once?

My hubby and I bought a 2004 Silver package #7. It only had 13k miles on it and it has been an absolute dream--I average about 53 mpg even in the hills of Pittsburgh.

[fshagan]

<div class='quotetop'>QUOTE(Victorria @ Jul 25 2006, 05:33 PM) [snapback]292291[/snapback]</div>

As the title states, why has the government made a decision not to give a tax credit for those of us who have bought a used Prius? Aren't we still doing the earth a service by driving a hybrid? I think the law is extremely unfair. Does the tax credit happen only once?

My hubby and I bought a 2004 Silver package #7. It only had 13k miles on it and it has been an absolute dream--I average about 53 mpg even in the hills of Pittsburgh.
[/b]

The tax credit is only for new cars. The incentive was to sell more new hybrid cars, and try to "erase" the higher price that hybrids generally get when new. In the case of the Prius, you can buy a Package 3 for about the same as a Corrolla when you consider the tax credit; otherwise, you're paying about a $3,000 premium for the extra Prius features (I think its worth more than the Corrolla, but that's an individual choice.)

I think we could have saved our tax funds, as higher gas prices have created more demand for hybrids, even without the tax credit.

[galaxee]

it's to ensure that there is no more than 1 tax credit claimed per car

[Godiva]

It's for new cars to try to get more hybrid cars on the road.

Of course, the current credit is to get more American cars on the road, since Toyota has already used up their 60,000 car allotment. So it is supposed to now encourage people to buy American hybrids....which are all SUVs (and a truck).

Somehow, I don't think the lack of a tax credit is going to shift a huge amount of the hybrid buying market from Toyota. I think the Prius will continue to sell well. Too soon to tell on the Cambrid. Basically they're selling them as fast as them make them. Now they need their suppliers to provide more parts so they can build them faster. And faster. So far we don't know how many they need to make to meet the demand, I.E. until there are no waiting lists. I imagine as the price of gas continues to climb, so will the demand.

[archermoo]

<div class='quotetop'>QUOTE(Godiva @ Jul 25 2006, 08:34 PM) [snapback]292385[/snapback]</div>

It's for new cars to try to get more hybrid cars on the road.

Of course, the current credit is to get more American cars on the road, since Toyota has already used up their 60,000 car allotment. So it is supposed to now encourage people to buy American hybrids....which are all SUVs (and a truck).

Somehow, I don't think the lack of a tax credit is going to shift a huge amount of the hybrid buying market from Toyota. I think the Prius will continue to sell well. Too soon to tell on the Cambrid. Basically they're selling them as fast as them make them. Now they need their suppliers to provide more parts so they can build them faster. And faster. So far we don't know how many they need to make to meet the demand, I.E. until there are no waiting lists. I imagine as the price of gas continues to climb, so will the demand.
[/b]

Well, keep in mind that there isn't a 60,000 credit allotment. The quarter after the manufacturer sells 60,000 hybrids people start getting less of a credit. So starting September 1st people buying new Prii will get a $1575 credit instead of a $3150 credit.

[Godiva]

<div class='quotetop'>QUOTE(archermoo @ Jul 25 2006, 11:14 PM) [snapback]292407[/snapback]</div>

Well, keep in mind that there isn't a 60,000 credit allotment. The quarter after the manufacturer sells 60,000 hybrids people start getting less of a credit. So starting September 1st people buying new Prii will get a $1575 credit instead of a $3150 credit.
[/b]

Yes, I know that. And it will go down every quarter.

But Ford and GM haven't reached their 60,000 yet. That was the point I was making. When there is 0 credit for the Prius, Ford and GM will probably still be working on their first 60,000. But the Prius will still be outselling them.

[cwerdna]

Besides the Big 3, Honda still has awhile to go before hitting 60K and Nissan's hybrid Altima isn't shipping yet. There are plenty of other manufacturers which have no hybrids on the market yet so they've all got an opportunity.

[MFB]

<div class='quotetop'>QUOTE(Victorria @ Jul 25 2006, 07:33 PM) [snapback]292291[/snapback]</div>

As the title states, why has the government made a decision not to give a tax credit for those of us who have bought a used Prius? Aren't we still doing the earth a service by driving a hybrid? I think the law is extremely unfair. Does the tax credit happen only once?

My hubby and I bought a 2004 Silver package #7. It only had 13k miles on it and it has been an absolute dream--I average about 53 mpg even in the hills of Pittsburgh.
[/b]

Primarliy the incentive was provided to get a greener car in circulation -- there is no need to provide incentives to circulate greener cars. Although I agree that those who are buying used hybrids are supporting the cause and deserve some commendation and accolade.

I tip my hat with a respectful bow.

[daronspicher]

If we could swing the tax credit for buying a used Prius, then we could all pair up here on PC and sell our cars to each other, then the following year, sell them back...

[bojojohn]

Thanks everyone for replies to my post. I thought I had this forum set to send me emails when people responded but I guess I didn't. And since I haven't received any, I thought no one replied.

I understand the want of the government to get as many new hybrids out on the roads as possible. I would love to see a study whether those who have purchased hybrids before actually traded in theirs for new ones. The dealer where I bought my 2004 said that the owners traded in for the Camry hybrid. I just think the govt should commend anyone who drives a hybrid. It is such a no-brainer.

In fact, I find myself getting irritated at all the SUV drivers I see now. "What are YOU doing for the environment???" In fact, when I see a Toyota Highlander I want so say "so why not the hybrid if you're going all the way?"




Thanks again,
Victorria