Quote:
Originally Posted by 90503
There is more room for profit in SUV EVs for the manufacturers as the 7.5K tax credit limit is 80K for an SUV, and 55K for sedans. The subsidy tax credit just made anything "affordable" to be just under 80K and 55K. Look for MSRPs to rise accordingly....
(You didn't think the tax credit would be for you, did you?)...lol...The Subsidy will end up being the controlling factor in the MSRP as makers will work it into their MSRP as pure profit. You will simply be the conduit to put the tax-credit in their pocket, not yours.
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car manufacturers also have to compete with buyers opting instead to buy used or not at all and just take uber and taxi's. And they are fighting for money their consumers have less and less of because everything else is expensive.
So the msrp has pressure and there is competition from that avenue. It's not just an oligopoly of sorts where the price can be raised simply because there's potentially more money on the table.
i dont see msrp raising due to a tax credit existing. That wouldn't explain the rising average car price for non-ev vehicles which increases at times faster than inflation as well. Instead what we are seeing is ever increasing non-optional options being tacked on to vehicle purchase to drive up base line costs and the lack of stocking any base trim versions of vehicles to pad dealership profits as well. And that is happening to all vehicles regardless of power source.