$7500 tax credit eliminated

Here's an article about it.

https://arstechnica.com/cars/2017/11/republican-tax-plan-kills-electric-vehicle-credit/

Len
2014 EV Coupe 12,750 miles
2014 EV Cabriolet 2,200 miles

It is not the least surprising. The USA is going to become increasingly isolated as it props up a dying, obsolete and dangerous industry while the rest of the world - including that part of the world just across the lake to my north, moves forward...

It'll definitely disproportionately hurt smart more in the long run, and hopefully won't be a killing blow for smartUSA

Ironically enough the uncertainty over the credit is likely pushing me away from my Model 3 reservation, to leasing a smart now. I only want a smart or Model 3 as my next EV, and a $10k difference is much easier to swallow than a $17.5k one given that I can live with a low-range EV.

Why not consider a Chevy Bolt? Similar car and range.

eloder said:

It'll definitely disproportionately hurt smart more in the long run, and hopefully won't be a killing blow for smartUSA

Ironically enough the uncertainty over the credit is likely pushing me away from my Model 3 reservation, to leasing a smart now. I only want a smart or Model 3 as my next EV, and a $10k difference is much easier to swallow than a $17.5k one given that I can live with a low-range EV.

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The 'killing blow' to smartUSA was delivered by MB itself.

The $7500 tax credit has not been eliminated. What's with this thread title?

It's the "Chicken Little" syndrome...

Mister_smart_LA said:

The $7500 tax credit has not been eliminated. What's with this thread title?

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If you had bothered to read the first post instead of just the title, or had been keeping up with the news, you would know that the House has released their tax reform package, which includes, yes, the elimination of the electric vehicle tax credit. As I stated, there are still many opportunities for it to be removed or altered, but given the political climate currently, it seems likely to be kept in some form or another. I understand that this development would be very bad for your business, but no need to nit pick the message.

Keeping this as apolitical as possible:

I was told that I was being “Chicken Little” and being overly dramatic when I saw the writing on the wall and predicted that my community would be under attack.

And you know what? It only took 20 days for me to be right!

Point is, don’t underestimate what can happen in today’s world...

Ms. Mercedes is right of course. Let's try to keep politics out of this. Instead let's focus on how the elimination of the tax credit will impact the community; should it come to pass. Obviously new car sales will drop; but by how much? The price of Smart will still be less than other electrics, so the lack of a tax credit will not cause Smart buyers to head to other electrics. It will drive some potential buyers to ICE cars, but if battery prices keep dropping quickly as they have been then it may not be as much of a drop in sales as one might suspect (likely a drop right after the tax credit is eliminated and then a rise as battery costs continue to drop). It may also cause resale prices to rise, as the gap between resale and new will rise if the tax credit is eliminated as planned.

Already had to move one post due to crossing into politics so let's stick to the topic at hand. Thanks.

This could, in the short term, actually help EV sales.

With cars like the Tesla 3 and Chevy Bolt now available consumers are now seeing longer range EVs drop dramatically in price. They are also being told that they can expect further price reductions in the future as EV adoption increases. So if these cars are going to be cheaper in the relatively near future why buy one now? It is possible that Evs are falling under a common deflationary pressure, delaying a purchase because of expected future price reductions, that might be partially alleviated by a potential price increase like eliminating the tax credit.

I don't think it would be a huge effect though as I think the expectation of future technological improvements could be reducing demand as much as the expectation of future price reductions, but it could have some effect.

As much as I loved my little Munchkin and had so much fun with it and wanted another one, I'm afraid that possibility will not happen. Medically being one reason with the Drs not happy with me and my health and rightfully not allowing me to drive. I can't and I have come to accept that. Second reason could also be that MB is going to pull the plug and seeing the latest sales figures is just another nail waiting.
There are tons of reasons why they shouldn't, but there isn't enough of us with a vote that says they should. Sad state and all kinds of fingers to be pointed but lack of sales and profit are reasons enough.
To all of you lucky folks here who drive your Smarts and love your Smarts, keep up the enjoyment and I will try to follow your paths.0

jwight said:

Already had to move one post due to crossing into politics so let's stick to the topic at hand. Thanks.

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How can we discuss tax policy without being "political"? And why was Miss Mercedes post not deleted - avoiding a "third rail" here?

Maybe you need to simply delete this whole thread. That would be the most fair way of doing it.

kilted said:

This could, in the short term, actually help EV sales.

With cars like the Tesla 3 and Chevy Bolt now available consumers are now seeing longer range EVs drop dramatically in price. They are also being told that they can expect further price reductions in the future as EV adoption increases.

Click to expand...

The trouble is that I see no evidence for your premises. EV adoption is pretty much zero across the US. Why buy an EV when gasoline provide far better performance and range? My Subaru outback goes almost 500 miles on a tankful and can be refueled in minutes.

Yinzer said:

The trouble is that I see no evidence for your premises. EV adoption is pretty much zero across the US. Why buy an EV when gasoline provide far better performance and range? My Subaru outback goes almost 500 miles on a tankful and can be refueled in minutes.

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Choices. Air quality. The commute to work in an electric smart car can handle Monday-Friday grind for most commuters, the Subaru Outback traveling 500 on a tankful might be unnecessary those days. It also emits air pollutants that the EV's don't. :nerd: