The Cars You Should Look at if You Want One of the New Federal EV Tax Credits

New federal tax credits bring Tesla, GM and Toyota back into the fold, but the details are complicated. Here are the few cars that should qualify in the near term.

You may have heard there are all new federal rules for you to get a 7 500 federal tax credit when you buy a car with a plug a new electric car the problem is the rules are really complicated compared to the last set you can check out my story and video on all the intricacies or i can just tell you what cars qualify now and in the near future that you can go look

At this is based on research done by consumer reports in the department of energy with some of my margin notes attached let’s go the chevy bolt and the more utilitarian bolt euv are both really solid choices well known and don’t need an introduction to speak of however they are kind of the tail end of gm’s old technology they do not use the new altium electric

Battery technology the gm’s about to pivot to and make all of its electric cars run on top of that may give some buyers a little pause as well as of course the black eye the bolt got from its previous battery tech being involved in a number of high-profile fires that doesn’t scare me away from a bolt to be honest but you do need to wait until january 1st of 2023

Because the bolt comes from general motors and gm lost their ability to offer federal tax credits because they were too good at selling cars with a plug the old rule had a 200 000 car cap the new rule does not but that doesn’t take effect until 1 1 23. also know that like many cars on this list the exact credit you get may vary by the sourcing percentage of

Critical battery materials in the vehicle you may get less than seventy five hundred dollars if a minimum percentage of critical materials aren’t sourced from the us or a country with which we have a free trade agreement like i said complicated 150 light only full electric pickup so far i’m taping right now in mid-october 2022 and the f-150 lightning came out

As a screaming bargain we couldn’t believe how cheap this thing was base price well that’s changed the base with destination used to be 41 669. crazy town now it’s 53 769 as i total it up that still leaves plenty of room to get this thing under eighty thousand dollars which is also one of the new rules trucks and utilities cannot cost more than 80 grand with all

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Your options and your destination charge if you want to get a federal tax credit but that shouldn’t be a big problem with an f-150 another problem though is do you want to wait for an electric silverado more on that in a minute staying with ford the mach e has been an absolute hit it is by most accountings zoomed up the sales charts to now sit squarely amidst all

The tesla models that’s really impressive and ford never lost their tax credit because they didn’t quite sell as many cars as gm tesla and toyota so you have no problem there on timing amaki should rather comfortably fit inside the 80 000 maximum price for a utility vehicle as well the only issues on this vehicle are that it will be coming up for a redo in 2026

That’s a long time from now not really a problem and a lot of folks are going to want to wait and cross shop it against the all-new electric chevy blazer which i’ll talk about in a moment okay the nissan leaf doesn’t exactly set anybody’s hair on fire it’s a real left brain kind of choice right but it’s solid it’s well known and nissan builds a good electric car

Eventually it’s going to go out of production again around 2025 2026 is the expectation to yield just a nissan line of electric cars that’s a very different strategy and it’s far enough down the road that i wouldn’t sweat it if you want to buy a leaf now nissan never lost their caps you can jump on one immediately if you find it and know that they also are going

To fit very tightly under the 55 000 max for a sedan or coupe the rivien r1s and r1t are real favorites of mine i know it’s a startup it’s the smallest volume car in my list however they have that wow factor when you buy one of these and take it out on the road you better like attention people are going to pull you over and say wow it’s a rivian can’t check it out

Will you take me for a ride you know all kinds of crazy stuff it’s a lot of fun to own one of these and they are great vehicles however they do have a price issue you’re going to be hard-pressed to keep one of these under eighty thousand dollars it’s an expensive vehicle that’s all there is to it and they did just have a very publicized recall of almost every car

They’ve ever made to tighten a bolt now i’d be more concerned if it was for a bad battery or motor or buggy computer it’s not that it’s something relatively mundane that a lot of car makers have to pull cars back for but when you’re a startup company in a time of economic headwinds you gotta watch these things nothing needs to be said about the model 3 and model

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Y from tesla these are the kings of the mountain in terms of electric car sales and mine share but know that you’ve got to wait until january 1 of 23 on these also because tesla was the first company to lose access to the federal tax credit because they were so successful sold so many cars they blew through the cap a long time ago an interesting side note you

Cannot buy a model 3 or model y option that highly talked about driver assist tech that isn’t what it says it is if you did that you’d end up with a car that costs more than the respective federal limits for a tax credit 55 grand for a sedan and 80 grand for a utility but i’m not going to lose any sleep about you not getting tesla fsd the volkswagen id4 has got an

Interesting wrinkle to it you’ve got to make sure you buy one made in the u.s right about now when i’m taping in mid-october they’re just starting to put these things out of their new tennessee plant prior to that the id4 is sold in the u.s all came out of a german plant and that would negate them from being available for a full federal tax credit for a federal tax

Credit at all so make sure if you look at one of these you know where it comes from now as you’ve noticed when we turn the corner into 2023 a number of makes of vehicles are going to once again become eligible for the federal tax credit but what also happens is a number of cars we’ve never seen before are going to be in showrooms let’s take a look the cadillac

Lyrics starts about 63 grand epa should class this one as a light utility which means that 63 will fit within the 80 000 maximum for that kind of car so that’s all good the other interesting thing here is it’s kind of the first gm car to have the new battery platform called ultium that i mentioned earlier now you could technically say the electric hummer offered

It first but that’s not a mainstream vehicle the reservations are all sold out and you can’t fit one under the eighty thousand dollar limit so this is really a big deal ultium is going to be where gm puts all of their bets so you got to get excited about waiting for it then there’s the chevy blazer ev this one’s going to go head on against the mustang mach e this

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Is not the current blazer with an electric motor it’s a whole new vehicle that is an electric sport crossover they say it has camaro dna the same way the maki has mustang dna we’re setting up a real head-to-head challenge here a lot of folks are going to want to wait and cross shop these two and while people tend to be lined up as chevy or ford people that’s kind

Of an old idea and i believe a lot more cross shopping is going to take place but no cross shopping is going to compare to the battle between the f-150 lightning we talked about and the new electric silverado that is coming in 2023. now they used to say truck people never changed brands ford for life chevy for life ram for life i don’t think i buy that as much

Anymore because electric vehicles have reset the table generationally people are less in love with a particular make of car and so you’re going to see a lot of folks saying well i was driving a gas engine f-150 maybe i look at an electric silverado so i think a friend on people are going to wait and say okay let me just hold off a little longer and let me see

What’s out there in terms of these two electric pickups by the way the really patient are going to wait till 24. when the ram arrives as an electric pickup then you’ve really got a battle foreign the final vehicle on my list kind of on my list is the tesla cyber truck because we don’t really know when it’s coming if it’s coming and what it will really cost it’s

Still kind of out there on elon musk’s twitter feed for the most part but he says it’s coming in 23. tesla has said the cyber truck will cost just under 40 grand before tax credit ford hasn’t even been able to hold anything near that line so i have my substantial doubts whether it gets a tax credit or not is not going to dampen the sales of the cyber truck it’s

Going to sell on passion and pent-up demand just fine foreign

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The Cars You Should Look at if You Want One of the New Federal EV Tax Credits By CNET