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If we don’t resolve the Electric Vehicle Act, the dealer will take all the money



My colleague Steve (Steve) always tells good stories quickly. Steve! This time, he defeated all of us and covered the proposed Electric Vehicle Law. This is cool because he provides a very detailed analysis, and now I don’t have to do that. On the other hand, my experience with dealers tells me that if we want the bill to succeed, the bill needs some amendments, because according to written regulations, this will be the main gift to car dealers and will not help more. Sales of electric cars.

For those who don’t want to read Steve’s article (it’s okay, I’m also a bit lazy), here is a summary of the bill:

  • Remove the cap for each manufacturer and allow consumers to receive tax credits for the next 1
    0 years, no matter where they buy the car from.
  • Buyers are allowed to use tax credits within 5 years, or apply tax credits on-site at dealerships to reduce vehicle prices, making tax credits more suitable for consumers who do not have to bear greater tax liabilities.
  • Provide a 10-year tax credit extension for alternative fuel vehicles and charging infrastructure to encourage the construction of important infrastructure across the country.

If you buy an electric car today, the credit line will not be refunded like the “income income credit line”. Therefore, if you do not owe thousands of dollars to the Federal Reserve at the end of the year, it will not help you much and may not even help you at all. Therefore, making it a point-of-sale discount/discount can reduce the outdoor price by $7,000, which will help Americans of all income levels actually use it to buy electric cars and get lower payments.

Now, reminding you of a car dealer, this is Harry Wormwood in the 1996 movie Matilda:

Everyone who likes money knows that unless you buy Saturn or Tesla, the dealer’s “price” is not the price you should pay, and the dealer is not in Saturn, just like John Nada (John Nada) ) Get rid of bubble gum. If you are not going to walk in there to bargain, they will kick you in the ass.

What the dealer will do is start with the suggested retail price, which is thousands of dollars higher than the actual sale price of the car, and then offer you a federal discount, and the dealer will not spend any money on you. They will make you look like you are getting a high price, but in reality, the distributor will be the one who will benefit from almost all discounts.

If the bill passes as recommended, make sure to make the most of the bill and don’t let the dealer use it as a scam to defraud you. Negotiate based on the actual dealer’s cost (you can find it on Google), and then subtract $7,000. Start your negotiations there, and don’t pay about $2,000 more. You may have to go out and find a few dealers to get this price.

right now, Clean technology Readers know how to not be deprived of their tax credits, but it is impossible for us to tell the entire country how to not be adopted by dealers. Therefore, if the proposal is passed, we will basically give dealers a generous return. Giving gifts, but in fact did not significantly reduce the cost of electric vehicles. Therefore, a lot of taxpayers’ money will be wasted.

To change this, we need to tighten the rules on tax credits.


How to resolve this bill

In order for the bill to really promote the growth of electric vehicle sales, we need to do something to ensure that it has an impact and encourage consumers and dealers (especially sales staff) to sell electric vehicles to you.

First of all, for transactions that qualify for point-of-sale rebates, we need to set an upper limit for the trader’s fees. If you charge customers one dollar in excess of the allowable amount, you will not be able to obtain federal funds to pay for sales.Dealer do We need to be able to make a profit on every sale, so we cannot set the profit at the dealer’s cost, but there must be a reasonable limit to ensure that the plan is not just a gift to them. We can set it to $2500 of actual dealer fees (including retention fees and other things they can play with), or set it as a percentage of sales. This will enable distributors to make money while at the same time making the plan a gift to them.

We also need to consider sales staff. If they think they can earn better commissions on gasoline cars, they will urge customers to buy gasoline cars. All this is to make money, and we have ignored the risks of the program. To solve this problem, we need to perform a so-called “Spiff”. For every electric car sold, 300-500 dollars in cash is provided to the salesperson. In doing so, they will determine that all electric vehicles have been sold before considering selling gasoline-powered vehicles to customers. Even so, they will tell them to please, please, please come back next week. “On Tuesday, I provided you with the ideal car!”

Even if we reduce the price of the vehicle by 7 squares, we still need more infrastructure. We need every small dealer in every small town to install a charging station. To this end, we can allow dealers hosting fast chargers to sell more cars. They can increase the price of electric vehicles by $500-1,000 for any month that they have DC fast chargers available to the public 24/7. Only a small amount of sales can cover the cost of demand and help pay for the cost of the equipment.

However, the station must be operational. This can be enforced where there is a required label on the charger/plug. The number on the label allows the user to report that the charger is turned off. If they do not solve the problem as quickly as possible, they will lose that part of the sales for the month.

If we want this to have any chance of passing the Senate, we better make sure that it is not a “tax credit for the rich.” If we set a ceiling on the price of vehicles, we can avoid using them for expensive electric cars. This will encourage manufacturers to provide electric cars that ordinary people can afford, instead of indulging in luxury SUVs, while not offering anything that most people can afford.

If we can do all these things, then the program will be a great success. If we don’t do this, we are wasting money.

Featured image: U.S. Capitol, U.S. Capitol Designer (Public Domain)


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