Yes, those are cars for the wealthy. Most people cannot even afford a car. If they can, they’re probably not buying a new car. And, if they do buy a new car, they’re probably looking to spend close to $20,000.
> If they can, they’re probably not buying a new car.
While it's a subsidy; the benefits don't stop at the first purchase. As long as the subsidy continues, prices for used EVs will stay below prices of new EVs.
A 2016 model year car, at the end of 2017, is not “new”. Also, I don’t know what specific electric utility subsidy you’re referring to, but that doesn’t help your argument, in this thread about subsidies, IMO.
What was the out-the-door price for your parent’s 2017 Leaf?
Nor are people spending $30,000 on a vehicle showing particularly price sensitive behavior.
Lots of fine vehicles available for $15,000, $15,000 is an awful lot of gas (and you save on insurance and financing with a cheaper vehicle, so the lower maintenance on the electric isn't the only consideration).
Maybe it's not just about cost, but about driving a vehicle that doesn't directly contribute to diffused emissions? And use motor oil, hydraulic fluid, coolant, belts, etc?
If you're going to compare long term maintenance costs, you absolutely have to include the battery pack replacement cost. Otherwise you're being disingenuous or even deceptive.
Many '11-'12 Leaf owners are already complaining about significantly reduced ranges on their vehicles. What happens after 60,000 miles if your battery starts rapidly going under 9 bars?
Keep driving with terrible range anxiety? Plan your routes with chargers in mind? Have a stopless commute now require you to stop and charge, making trips even longer?
Just because something is priced in a range that would be affordable to most professionals, liberals or conservatives, does not mean it isn't associated with the elite.
This toilet paper is made of gold... but do you think its the "elites" that are buying it?
I know 4 people who purchased used Nissan Leaf's for under 10,000 with the tax credit in California. They all make over 6 figures. My conservative neighbor makes less than $60,000 per year, and has a truck that costs that much.
They are more like the 2nd/3rd car for the upper middle class. So many in the Bay Area are used just for commuting in EV lanes and charging at work by people who don't need the tax credit.
It's not so much the value of the car that determines whether the credit benefits the wealthy or not. This is a tax credit, not just a check from the government. You have to have a fairly high income in order to have a federal tax liability of $7500. A single person would need to make almost $50k a year in order to benefit from the full credit.
That's not a big number by developer standards but it's more than the median household income in the US.
(Having said that I'm for the credit and have already benefited from it twice.)
That's why I said wealthier. As a lot of people pointed out new cars, especially electric, are still something bought by people earning more than average. These aren't yachts but they are still target higher end come breaks.
Even with the tax breaks that include middle class earners benefit the rich more just by the nature of how deductions work. The rich tax payer would have had this deducted income taxed at a higher bracket than the middle tax payer would thus a bigger absolute savings on their tax bill.
Between 2015 and 2016, US median household income rose 3.2% from $57,230 to $59,039, according to a new report released by the U.S. Census Bureau on Tuesday.
So, yes, the median household income is right in line with being able to purchase a 20k vehicle.
Buying specialized vehicles is a very upper class thing to do. The middle and lower classes aren't willing to pay new car prices for something unless it can do everything, not just commute or tow their camper or boat.
That's why crossovers, SUVs and half-ton pickups with multiple rows of seating are so popular among less wealthy new car buyers.
Buying a commuter vehicle that can do little else well is definitely an upper class(es) thing.
