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Car buyers can get their EV tax credits up front at the dealership starting in January | CNN Business (www.cnn.com)
submitted 2 years ago by to c/evs@lemmy.world
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Not much to add. Other than the IRS PDF is written is legalese…

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[–] -1 points 2 years ago (3 children)

It doesn't have a real effect tho...

If they decide consumers will buy at X price, they'll sell them for X and the people willing to spend X will buy it

If there's a 7k tax credit, they'll sell it for X+7k, and the same amount of consumers will pay X and buy the same amount of cars...

The only difference is everyone is paying their share of those 7k bonuses to manufacturers.

That tax money would be much better spent on infrastructure or public transport.

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  • [–] 0 points 2 years ago

    Assuming your theory is true, you don't think an extra $7500 in pure profit will have any effect on production? If I was a company I'd try to sell more cars that have massive easy profits...

    In reality, there's a whole price elasticity of demand formula that automakers will attempt to model, and they'll adjust everything they make to try and maximize profit, both now and in the future.

    I agree that the money is much better spent on public transit, trains, bike infrastructure, etc, but that doesn't mean we get to misrepresent the impact of massive tax credits on the market.

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