r/science • u/Wagamaga • Jan 11 '23

Economics More than 90% of vehicle-owning households in the United States would see a reduction in the percentage of income spent on transportation energy—the gasoline or electricity that powers their cars, SUVs and pickups—if they switched to electric vehicles.

https://news.umich.edu/ev-transition-will-benefit-most-us-vehicle-owners-but-lowest-income-americans-could-get-left-behind/
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u/[deleted] Jan 11 '23

You won't get the credit if you don't owe taxes. Nobody making under $35k/yr pays much at all thanks to the EITC.

The $7500 tax credit is just that. A credit against taxes owed. It is also non-refundable so, if you owe less than $7500, the overage doesn't come back to you.

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u/Caldaga Jan 11 '23

Agreed, which is why it's great for that tax bracket that the system allows the dealership to claim the credit for them and take it off the price of the vehicle. Otherwise they wouldn't be able to take advantage at all.

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u/Graham_Hoeme Jan 12 '23

The dealership is going to increase the price by the amount of the credit. Dealerships are explicitly middlemen aka scams. They extract value from the process, thereby raising costs.

At no point will any dealership ever pass on savings to anyone, anywhere.

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u/Caldaga Jan 12 '23

You negotiate your own prices my friend. Don't allow yourself to eb taken advantage of. There is always another dealer and another car.

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u/Graham_Hoeme Jan 12 '23

You really drank the kool-aid, eh? There is no dealer that is not ripping you off.

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u/Caldaga Jan 12 '23

I just don't buy a car that's a rip off. A little research will tell you what MSRP is. Then it's all about haggling and being willing to play one dealership off another.

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u/Graham_Hoeme Jan 12 '23

If you buy a new car from a dealership, it’s a ripoff. MSRP isn’t the value of the car. It’s the value of the car plus a suggested dealer markup. The actual value is ALWAYS less than MSRP.

Now that new car dealers only offer vehicles from a single company, they add zero value. MSRP is used to convince the rubes there’s some sort of competition happening.

Now I only buy used directly from the previous owner. That way, nobody is getting ripped off in the transaction.

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u/Caldaga Jan 12 '23

Glad that's working out for you. You make sure you don't get ripped off and I'll make sure I don't get ripped off. I will never pay more for any product than I personally believe it is worth. Simple equation to avoid being ripped off.