TheStreet: Chevrolet Volt -- the Art of Driving for Free

The Prius PHV will get somewhere between $2500 to 2900 dollars in tax credit. Comparing prices of these 2 cars with their respective tax credits is not going to tell you anything. If you do that, you are assuming that everyone will get a check for the amount of the car's tax credit. It is not a rebate, but a non-refundable tax credit. I think GM's website or some dealer's postings are misleading, with the list price minus the $7,500 dollars.

When you buy a Volt, you pay the entire amount including the $7,500 dollars in question plus the sale tax and finances that apply to the 7500 dollars. Depending on your tax situation, you may benefit from it if you owe income tax by the time you file your taxes.

If you are a retired person for example, you will not get a check for $7500 dollars from Uncle Sam.

 

I leased my Volt and the $7500 was applied right away so I got the full and immediate benefit (its why I can lease a $40k car for $350 a month). They are supposedly working on making the tax credit at point of sale, but the truth is most people who can afford these cars make enough income to have at least $7500 in tax liability.