10 Vehicles that Still Qualify for a Federal Tax Credit

Unfortunately, many of the federal tax credits for popular hybrids – such as the Toyota Prius – expired quite a while ago. However, although a handful of vehicles no longer qualify for the tax incentives, there are plenty of energy efficient automobiles that can still result in a decent tax credit.

To assist the readers of my blog looking to invest in a hybrid vehicle, please enjoy the following list of 10 vehicles that are still eligible for the IRS credit. I have provided information as to the amount of the credit and basic information on each automobile.

1. 2010 BMW Active Hybrid X6 – Credit: $1,500

The 2010 Active Hybrid X6 BMW boasts superb fuel efficiency while maintaining the speed and class of a regular BMW. Although the vehicle does not have the best fuel efficiency rating or the lowest price tag, the vehicle is being marketed towards consumers who want an efficient luxury vehicle that can go from 0 to 60 in less than 6 seconds. The BMW Active is listed at $88,900 and qualifies for a federal tax incentive of $1,550.

2. 2010 Audi A3 TDI – Credit: $1,300

The 2010 Audi A3 TDI is a clean diesel SUV with the same capabilities as any typical sports utility vehicle; it also seats seven. Since the automobile uses diesel fuel, drivers can claim a tax credit for this car of up to $1,300. The Audi A3 TDI is one of the first of its kind, and was even awarded the 2010 Green Car of the Year award from Green Car Journal.

3. Chevy Volt – Credit: $7,500

Although the Chevy Volt has not hit sales floors yet, there is already a lot of anticipation of its upcoming release. The vehicle has an electric motor – powered by lithium ion batteries – and the car can travel 40 miles on a single charge. Although an official price has not been announced, experts predict it will be priced around $40,000, which would correlate with a tax credit of $7,500.

4. Tesla Roadster – Credit: $7,500

The most significant federal tax credits are available for plug-in electric vehicles, such as the Tesla Roadster. The credit amount may not seem as significant compared to the Roadster’s steep $109,000 price tag. However, many states including California are offering additional incentives for taxpayers who buy or lease a Tesla Roadster.

5. 2010 Mercedes Benz ML450 Hybrid – Credit: $2,200

The 2010 Mercedes Benz ML450 is another hybrid offering drivers a luxury car that can be driven on only electricity, only gasoline, or an efficient combination of the two. The small scale SUV gets around 24 miles per gallon and qualifies for a $2,200 federal tax credit.

6. 2011 Nissan Leaf – Credit: $7,500

The 2011 Nissan leaf is among the most affordable electric vehicles. It has not hit the market yet, but according to reports it can travel 100 miles on a $3.00 charge of electricity. The leaf will arrive at Nissan showrooms across the country this December. The MSRP should be around $32,780 before the credit, and the vehicle will also qualify for a $5,000 Californian clean vehicle rebate.

7. 2010 Chevrolet Tahoe Hybrid – Credit: $2,200

The Chevy Tahoe Hybrid has an MSRP of $51,185, however if you purchase one before December 31^st then it will qualify for a $2,200 federal credit. The vehicle averages 21 miles per gallon. Although the Tahoe is not the most efficient vehicle on my list, considering its size the mileage is still impressive.

8. 2010 GMC Sierra Hybrid – Credit: $2,200

If you need to drive a truck that can haul items, but are looking for a way to cut your fuel expenses, then you should consider the 2010 GMC Sierra Hybrid. The truck is best for city drivers, who can benefit from a 21 mile per gallon average. Additionally, the Sierra has a $38,710 MSRP and will qualify for a $2,200 federal tax credit.

9. 2010 Mercedes Benz GL350 BlueTec – Credit: $1,800

Car buyers looking for clean-diesel technology as well as enough room for the whole family should look to the Mercedes Benz GL350 BlueTec. The vehicle also boasts impressive safety features such as a fuel system shutdown in the event of an accident. Although the price is a bit high at $60,825, the GL350 does qualify for a $1,800 tax credit.

10. 2010 Cadillac Escalade Hybrid – Credit: $2,200

Energy conscious Cadillac Escalade fans can now get the full-sized luxury SUV they love, in the form of an efficient hybrid. With a base MSRP of $51,185, the automobile boasts a 5-star crash rating, and 3-row seating. It also qualifies for $2,200 federal incentive if you purchase before the end of the year.

American Pickers TV Show and Vintage Cars

Have you seen the new TV show, American Pickers on the History Channel!? It’s about two men who make a living finding treasures in what other people might consider trash. The two guys go around and purchase goodies from the people. Recently, on the episode called White Castle on the Farm (premiere date 02/01/10). Mike and Frank spot a White Castle burger joint on an Ohio farmer's front lawn and what was really awesome was this guy’s extraordinary collection of vintage vehicles! You can watch the whole episode on iTunes or Netflix. American Pickers, White Castle on the Farm.

If you like classic cars, be prepared to be blown away by these beauties this guy has had passed down from his Dad from the 1930’s!

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A Deeper Look at the Cash for Clunkers Program

The Federal government’s new “Cash for Clunkers” program has been getting a lot of attention over the past week. The phrase was trending on Twitter most of last week, and even car dealerships are beginning to use the phrase in commercials and billboards. However, with rumors of a depleted budget, and myths about qualifying, many taxpayers are getting frustrated and confused. To help readers of my blog better understand the program, and see if they qualify, I have put together the following helpful article.

What is It?

Officially known as the Car Allowance Rebate Systems – or "CARS" – the programs was signed in to law by President Obama on June 24th, 2009. Taking examples from similar programs through out Europe, the American version was designed to encourage taxpayers to trade in their high gas-mileage (less than 18 mpg) vehicles for more efficient new automobiles. Depending on how high the new vehicles mileage is the rebate is either $3,500 or $4,500.

Not a Tax Credit

Unlike the Federal incentives for first time home buyers, the Cash for Clunkers program is not a tax credit or deduction. In fact, it is being managed the U.S. Department of Transportation, not the Internal Revenue Service. When a qualifying taxpayer goes to buy a car, the dealership will automatically credit the rebate towards the purchase price. You do not need to claim it on your income tax return, you do not need to request the rebate; the dealership should handle everything.

Who Qualifies?

Qualifying for the Cash for Clunkers program actually has more to do with the car than the car owner, as it turns out. Generally speaking, to qualify your car must have a gas mileage of less than 18 mpg, and be no more than 25 years old. However, CARS has put together a list of the specific vehicles on the market that qualify for the program, click here to download it in PDF. You will also need to provide proof that you were both the registered owner and had insurance on the vehicle for one full year.

New Vehicle Restrictions

If your old vehicle is eligible for the credit, and you can provide proof of ownership and insurance, then you are now ready to begin looking for your new ride! However, remember that you new car needs to meet specific restrictions as well. It must be a new 2008-2010 model, cost no more then $45,000, and it must be a car or truck (i.e. no motorcycles, mopeds, etc.)

Tax Debate

In addition to confusion over taxpayers claiming the rebate, many dealerships have also been confused about the taxes related to the Cash for Clunkers program. In the initial bill, lawmakers apparently forgot to specify whether dealerships had to pay taxes on Cash for Clunkers car deals. Luckily, the mistake was fixed quickly, and car dealerships were disappointed to learn that Cash for Clunkers rebates would indeed need to be considered taxable income. For consumers though, the rebate does not need to be counted as taxable income.

Extension from Congress

Last week there was a lot of speculation that the program had ran out of funds only a few days after it’s launch. However, although the initial $1 billion approved by the President reportedly did not run out, congress has already added another $2 billion to the program. The decision to add more funding to this highly popular rebate system was quick, and mostly bipartisan.

Premature Car Sales

Although the sales made during the Cash for Clunkers program will stimulate car dealerships instantly, some experts warn that these sales were ones that would have been made in the coming months anyways. Meaning that auto sales would likely drop once the program expires. Some bloggers suggest that although the "adrenaline shot" of recovery is certainly useful, the sudden drop in sales a few months away could hurt the slowly recovering economy.

Stimulated Automakers

In addition to encouraging Americans to get behind the wheels of more efficient vehicles, one of the biggest purposes of the Cash for Clunkers programs was to stimulate the struggling auto industry. Thousands of American taxpayers are employed by the auto industry, and by increasing care sales the government is hoping that it will help with unemployment problems. There has been debate about which car manufacturers are being stimulated, since cars produced by Toyota and Honda (both Japanese automakers) both have vehicles making the top list of Cash for Clunkers trade-ins. However, it is important to remember that even though these companies are based out of the country they do employ thousands of American workers in assembly plans and dealerships. Furthermore, Ford and GM both made up a majority of the top 10 list.

Is it Truly Eco-Friendly?

The main goal of this program was supposedly to lower American fuel emissions by encouraging taxpayers to buy more efficient vehicles. However, many argue that it is not having the desired effect. According to CNN, private reports show that most people receiving a Cash for Clunker rebate use it to buy a truck or SUV. Additionally, research for the University of Berkeley shows that most of the “clunkers” being traded in were not being used as primary vehicles. Instead, families are trading in their secondary vehicles which they rarely use.

Little, if any Help for Low Income Americans

Although the Cash for Clunkers rebate system was designed to help low income Americans, many suggest it is having the opposite effect. When a vehicle is traded in under the program, it must be recycled and NOT resold. Therefore, the inventory of used vehicles will decline and many predict that prices of user cars will increase as a result. Since you cannot buy a new car for only $4,500, and many low income families buy used vehicles, many are worried that the program will have a negative impact on struggling Americans. Additionally, according to the Heritage Foundation found that “the average income of those purchasing new cars under the program was $57,700--only slightly below the $61,000 for all new car buyers.”

Hybrid Sales Decent in September, but Still Down

With the credit freeze, and people scared of loosing their savings accounts, car sales have dropped drastically in the last month. Although most companies saw sales drop by as much as 30% in September, according to AugoblogGreen, “U.S., General Motors actually did better than many companies with only a 15.8 percent drop in September compared to last year. There were even some bright spots in the numbers with the Malibu being up 192 percent and the Vibe jumping 91.1 percent. GM's hybrid models are also continuing to gain ground with 1,957 units moved during the month. The combined total of Tahoe and Yukon Two-Mode Hybrids topped 1,000 for the first time and the Malibu and Vue mild hybrids held steady at 382 and 443 respectively. The new Escalade hybrid still hasn't climbed into triple digits and the Saturn Aura still doesn't seem to be more than an afterthought with 31 sales. All together, GM has sold 9,053 hybrids through nine months.”

Although General Motors does have impressive numbers, according to CanadianDriver.com, “ales of hybrids in the U.S. in September dropped 8.9 per cent to 20,836 units when compared to September 2007, the lowest September sales volume since 2005, according to a report by the Green Car Congress. Overall sales of light-duty vehicles in the U.S. in September dropped 26.6 per cent year-on-year; hybrids accounted for 2.2 per cent of the new vehicle market share for the month.

Sales of the Prius dropped 13 per cent to 10,873 from September 2007, which Toyota said is due to continuing limited availability. The Prius will be built at a plant in Mississippi in late 2010 to help meet demand. Camry Hybrid sales were down 33.6 per cent to 2,785 units, representing 9.4 per cent of all Camry models sold in the month; total Camry sales were down 27 per cent. The Highlander Hybrid rose to 921 units, up from 193 in September 2007, and represented 16.1 per cent of all Highlander sales, which dropped a total of 30 per cent from 2007, to 5,729 units.”

8 Reasons to Buy a Hybrid

With gas prices putting a strain on everyone’s wallets, hybrid sales are soaring. But do not let the sticker price of a hybrid vehicle scare you – there are plenty of incentives to consider both before and after the purchase. Although we all probably know a handful of obvious reasons to buy a hybrid vehicle, there are actually a lot of incentives that you may have never heard of.

1. The Obvious

Gas consumption levels are much lower for hybrid vehicles (up to 50 mpg in city driving conditions). Studies show that by the 2^nd or 3^rd year (less if you commute or drive often) of owning the vehicle, the gas you’ve saved will have already paid for the car.

2. Future Value

Hybrid vehicles hold their value very well. After years of well-kept ownership, the value of hybrids usually only drops a few thousand dollars. This is partially because hybrids have low idle rates as their engines usually shut off at stoplights, and turn back on when you press the gas pedal again. This causes much less stress to the vehicle’s engine.

3. Maintenance

Hybrid vehicles, particularly the Toyota Prius, are made with parts that do not require much maintenance. As a Prius owner, you will only need check ups and oil changes as often as you do with normal cars.

4. Tax Incentives

Although the tax breaks have definitely decreased over time, certain tax cuts are still available to some hybrid buyers in many states. With the ongoing energy crisis, there is also growing pressure on Congress and the President to extend the old hybrid credits, or even create better ones.

5. Insurance Savings

A decent amount of insurance companies are also beginning to offer discounts for hybrid car owners. Before you buy a hybrid, call around a few different insurance companies to see if you qualify for any alternative fuel discounts.

6. Low, Manageable Leases

Major car companies, such as Toyota, have recognized the demand for hybrids is increasing and offer impressively low leases (as low as $219 a month) to help consumers who cannot afford to buy a new car.

7. Impressive Warranties

Toyota, Ford, and Honda all offer extended warranties on hybrid specific parts of their vehicles. The battery packs alone in the Toyota Prius have warranties that average out to about 12 years of use.

8. Funding a Good Cause

Buying a hybrid vehicle is one way to directly fund fuel-efficient technology. By buying and using a hybrid vehicle, you are making a statement on the ongoing energy crisis in this country.

Honda Sells First Hydrogen Powered Vehicles

According to BBC News, Honda has begun production on the first commercial, zero-emission, hydrogen fuel cell powered vehicle. The car will be a four-seater and will run on electricity produced by combining hydrogen with oxygen. Honda claims the vehicle will offer three times better fuel efficiency than traditional cars. Below is a quote from the article, to read the full article check out Honda makes first hydrogen cars on BBC.co.uk.

One of the biggest obstacles standing in the way of wider adoption of fuel-cell vehicles is the lack of hydrogen fuelling stations. Critics also point out that hydrogen is costly to produce and the most common way to produce hydrogen is still from fossil fuels.

Analysis of the environmental impact of different fuel technologies has shown that the overall carbon dioxide emissions from hydrogen powered cars can be higher than that from petrol or diesel-powered vehicles.

The first five customers are all based in southern California because of the proximity of hydrogen fuelling stations, Honda said. US actress Jamie Lee Curtis will be among the first to take delivery of the vehicle, the firm added.

The car will initially be available for lease rather than purchase in California, starting in July, and then in Japan later this year.

7 Green Cars of the Future

With rising fossil fuel costs and global warming getting more attention in the media, environmentally friendly cars were all the rage at the Detroit Auto Show last week. At these auto shows, car manufactures usually present out-of-this world concept cars. This year, nearly every company showed off new environmentally-friendly cars.

The biggest trend at the show was new range-extended electric vehicle (REEV) concepts that run on an electric motor that powers the car 100% of the time. The vehicles plug into power outlets that charge the batteries for a 20 – 60 mile driving range. After they pass that range, a generator kicks in which recharges the batteries using any popular fuel. This includes gasoline, ethanol, or even hydrogen.

However, there were dozens of other energy efficient concept cars introduced besides REEVs. Enjoy the following list of 7 green cars of the future.

New Toyota Prius

At the Detroit auto show, Toyota's President, Katsuaki Watanabe announced that he would unveil two new hybrid models at next year’s show. One is suspected to be a Lexus hybrid, while the other is known to be the replacement for the Toyota Prius. Not much is known about what the new Prius will feature, but it is predicted to be more energy efficient with a lower price tag. Some speculate the new version could feature new plug in hybrid technology.

Volvo ReCharge

Volvo’s ReCharge concept car truly takes the phrase "green car" to the next level. Why? Because the vehicle even features green wheels. The car is a plug-in series hybrid with a battery with sufficient capacity for 62 miles of electric driving. After that, the car’s battery begins to recharge the battery. It is expected to average 124 mpg.

Chrysler ecoVoyager

Chrysler’s ecoVoyager takes the idea of plug-in hybrids to the next level. It relies on a fuel cell rather then gasoline or diesel. The vehicle features the modern "skateboard" design, which allows for a roomy cabin and low center of gravity. It weighs less than 3,000 pounds and Chrysler claims it gets a 12.9-second quarter mile. The car looks futuristic with its smooth design and vertical skylights.

Do not expect to see them on the road any time soon. Chrysler has not yet confirmed they are working on electric hybrid technology, but it certainly did not stop them from putting together an attractive concept car.

ASF Trinity Vehicles

AFS Trinity vehicles are actually not a new brand of car, but rather a working plug-in hybrid system. The company modified a regular Saturn Vue Hybrid by adding a powerful battery capable of running 40 miles on only electric power. Trinity is one of the first companies to successfully produce a REEV and is years ahead of the major automakers.

However, the technology is still going to need improvement before it will be ready to hit the market. The system likely requires large areas of storage space for the huge batteries required to run the car. Trinity has not yet released specific pricing information.

Chevy Volt

The Volt is Chevrolet’s concept of their future REEVs. General Motors has made great strides in environmentally friendly vehicles over the past few years and plans to have the first street-ready editions on sale by late 2010. The car is expected to be able to go 40 miles on 120-kW electric motor. GM hopes to have upwards of 60,000 of the vehicles ready for its first year on the market and plans for a base price of between $30,000 and $40,000.

Opel Flextreme

The Opel Flextreme is essentially a European version of the Chevy Volt. It features many of the same features as the Volt with a slightly different looking exterior. However, one major difference is that the Flextreme comes with a rear storage space specifically designed to fit a pair of Segways that can charge off the car’s batteries. Unfortunately, this extra storage space means less room for fuel, which reduces the car’s range from 640 to 444 miles.

Fisker Karma

The Fisker Karma represents the future of luxury sports cars. The vehicle has a sporty and attractive design but maintains maximum fuel efficiency. It features a lithium ion battery pack that can power the car for 50 miles before needing fuel. According to Fisker it can go from zero to sixty in 5.8 seconds and reach a top speed of 125 mph.

Images curtosy of AutoBlogGreen.com

Q&A About Ford’s Energy Efficient F450

AutoBlogGreen has an interesting Q&A session with Beau Boeckmann, the president of Galpin Auto Sports about the Ford F-450 Super Duty that runs on biodiesel and hydrogen. You can read the transcript of the interview by checking out AutoBlogGreen.

Land Rover LRX Revealed!

Check out the image below of the new Land Rover LRX. This car is being highly anticipated, and is expected to be unveiled at next month’s Detroit auto show. It has long doors, a sloping roof, 20" wheels, and a 2+2-cabin configuration. For more pictures check out AutoBlog.

New 2010 Mustang Spotted

Spies over at Jalopnik.com spotted Ford performing road tests of what look like the 2010 Ford Mustang. Many of the features seen on the new car reflect the Giugiaro concept car Ford introduced at last year’s LA Auto Show. These features include front and rear fascia and major upgrades to both the interior and exterior. Check out the picture below, or you can view the whole set of pictures at Jalopnik.com.

Honda Hybrid Tax Credit Phase Out

The IRS recently announced that Honda has reached the 60,000 vehicle limit during the calendar quarter ending Sept. 30, 2007. Therefore, the credit for buying any Honda hybrid vehicle begins will begin to phase out beginning January 1, 2008. Vehicles purchased before that date, however, will still qualify for the full credit. For Honda hybrid vehicles bought on or January 1, 2008, the credit is 50 percent of the otherwise allowable credit amount.

The new credit amounts will be as follows:

• Honda Accord Hybrid AT, Model Year 2007 — $650
• Honda Accord Hybrid Navi AT, Model Year 2007 — $650
• Honda Civic Hybrid CVT, Model Year 2007 —$1,050
• Honda Civic Hybrid CVT, Model Year 2008 — $1,050

Chrysler Releases Sketches Of ecoVoyager Concept

Yesterday Chrysler released sketches of their next concept car, which is expected to be unveiled at the January 2008 Detroit auto show. Check out the sketch below, thanks to Auto Green Blog.

Green Car of the Year: Chevy Tahoe Hybrid

Green Car Journal founder Ron Cogan announced yesterday that this year’s Green Car of the Year Award is the Chevy Tahoe Hybrid. It received the award for demonstrating that a large vehicle with could still offer fuel economy equivalent to that of a much smaller car. Five cars were nominated for this award including the Saturn Aura Green Line, Chevy Malibu Hybrid, Nissan Altima Hybrid and Mazda Tribute Hybrid.

2008 Dodge Viper SRT10 ACR Pictures

Although Dodge’s new Viper SRT10 ACR will not officially be unveiled until the November 13th auto show in Los Angeles, numerous sites have already posted leaked pictures of the impressive new vehicle. It features an 8.4-liter V10 engine with 560 LB-ft of torque. According to Chrysler the car generates 1,000 pounds of down force at 150 mph and can generate 1.5g while cornering. This vehicle is expected to retail for under $100,000. Check out some pictures below, thanks to Jalopnik.

Porsche to Take Over VW?

Although Porsche has been buying VW stock like crazy for the past year, there has been a piece of legislation called the VW Law which has stopped Porsche from taking full control over the company. However, the European Courts recently stuck down the law and now there is nothing preventing Porsche from increasing their stock ownership. Porsche currently has a 31% stake in VW, but with this new announcement they are expected to increase that to at least 51%. The industry expects Porsche to be patient with the rest of the process, possibly taking up to a year, but there is no doubt that they will soon control VW. Thanks to AutoBlog.

New GM Concept Camaro

GM car czar Bob Lutz announced a new Camaro concept car on one of his recent posts on the Fastlane Blog. He describes the new car as being remarkable claims the new Camaro is intended to be "the finest car in its class, ever." Check out a picture of the concept car below, thanks to the GM Fastland Blog.

Nissan Unveils Pivo 2 Concept Car

Nissan unveiled the new Pivo 2 concept car at the Tokio Motor Show a few days ago. The car features a 360-degree rotating cabin, 90-degree turning wheels, and braking and steering drive by wire capabilities. Below is a picture of this funky new concept car, thanks to Engadget.com.

New Video: 650 HP Corvette ZR1

Thanks to Fast Lane Daily I have attached a video of the new 650 HP Corvette ZR1 below. For most of the video the car is just cruising along and you can’t really get a feel for the vehicles power, but at the end there is a nice shot of the car accelerating to get onto a highway. Although a few pictures have been released, this is the first video of the new Corvette which is expected to be unveiled in the January Detroit Auto Show.

GM May Have 60,000 Volt Electric Cars Out In 2011

Insiders at GM have revealed that the auto-maker may be planning to have over 60,000 of their Volt electric cars on the road within one year of launching in 2010. GM product chief Bob Lutz said he plans to sell the first Volt by late 2010, and expects to have prototypes ready for testing early next year. Insiders claim that production is set to produce 60,000 vehicles for the official launch, however GM spokesman Scott Fosgard declined to comment on the plans. ``If they {GM} were able to get 30,000 to 60,000 on the road in a year, it would be a huge leap in technology,'' claims Brett Smith, an alternative-fuel analyst in Ann Arbor, Michigan. ``It will be difficult, though, because there are so many barriers to making this happen.'' Source: Bloomberg.