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Instant EV Tax Credit Arrives For Electric SUVs, $7,500 Price Drop For Tesla Model Y,

The two leading electric SUVs in the U.S. market are markedly cheaper now with the Inflation Reduction Act (IRA) essentially providing a $7,500 rebate at the point of sale.

The No. 1 and No. 3 best selling EVs in the U.S. in 2023 (via Kelley Blue Book) were the Tesla Model Y and Chevy Bolt EV/EUV, respectively. Both SUVs. While the Model Y sales numbers (394,497) beat the Bolt (62,045) by a wide margin, the Bolt beats the Model Y on price by a pretty wide margin. The Bolt is also a remarkably good EV and a downright steal if you opt for the base model (see price ranking via Edmunds).

2024 Tesla Model Y price with $7,500 EV tax credit: $38,130 for a rear-wheel drive Model Y with an EPA estimated 260 miles of range — Tesla’s least expensive Model Y configuration. Tesla states that “eligible customers” receive $7,500 off the purchase price “at time of delivery.” This applies to cash or loan purchases. Tesla also states: “Customers can purchase up to two vehicles per year with the tax credit applied directly to the purchase price” as long as the price of the car is below $80,000 and adjusted gross income is not above $300,000 for married couples filing jointly and $225,000 for heads of households. It’s $150,000 for all others.

A pricier long range Model Y (dual-motor all-wheel drive) with 310 miles EPA-rated range is $43,130 after the federal tax credit. The $7,500 IRA tax credit also applies to Tesla leases, which have lower monthly payments typically than loans. Alternatively, the Model Y sold on the inventory page can be cheaper in some cases than the custom order page. However, the tax credit is not shown as being currently available for inventory model purchases. It is included, however, for inventory leases stated as a “$7,500 EV lease incentive distributed across lease term.”

Chevy Bolt price with $7,500 EV tax credit: about $18,500 for the base Bolt EV 1LT trim at dealers in Los Angeles. This is getting down into bargain basement EV pricing. The 2023 Bolt EUV Premier Redline Edition, the top-of-the-line model, drops to below $32,000 below MSRP with the $7,500 federal credit. This is still a good deal for a fully-loaded electric SUV that includes premium features such as Super Cruise (roughly equivalent to Tesla’s Autopilot). Bolt EUV Premier models sans Super Cruise are even cheaper (and more plentiful). If you don’t opt for Super Cruise you can save an additional $2,200.

Note that as of January 2024 this tax credit is deducted by the dealer from the price of the car at the time of purchase regardless of the customer’s tax burden, as spelled out by the IRS.

Chevy Bolt act fast: As of December, General Motors had discontinued and stopped manufacturing its most popular EV. (An inexplicable marketing decision that defies logic. GM says it’s coming out with a redesigned Bolt in 2025 but don’t hold your breath.) That said, as of late January 2024, there is still decent inventory on dealer lots — at least in Los Angeles. A salesperson at a dealer I visited in downtown Los Angeles this past week told me that he had sold eight Bolts in just one day after they had announced the instant $7,500 tax credit earlier this month. My guess is that inventory won’t last long.

This article was originally published by a www.forbes.com . Read the Original article here. .

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