Federal tax rebate extension bill under discussion;

A bill to extend the federal tax credit for consumers purchasing electric vehicles has been proposed by two Michigan congressmen. President Obama made a reminder of his recent commitment to put 1 million electric vehicles, some of which can be found at Wichita Chevrolet Dealers, on the road in the United States within four years. Federal tax incentives and rebates are one major method by which this can happen, and the two Michigan congressmen hope to expand on the current rebate being offered to buyers of new electric models which can be found at New York Ford.

The legislation was proposed in the House and Senator Carl Levin of Michigan will propose similar legislation in the Senate. There is a current cap of 200,000 vehicles for each automaker that would qualify for a $7,500 tax credit. This tax credit can substantially reduce the cost of an electric or hybrid vehicle such as those sold at Chevrolet Dealership Orlando, which are typically priced substantially more than their traditional gasoline counterparts. The reason why hybrids and electrics are priced higher is due to higher cost components and battery technology that has not evolved enough to reduce costs.

The $7,500 rebate was offered as a part of the Recovery Act of 2009 to spurn vehicle sales in the United States. The credit can be used for the purchase of five vehicles currently, the Tesla Roadster, Chevy Volt, Nissan Leaf, CODA Sedan, and the Wheego LiFi. After 200,000 units have been sold, however, the manufacturer is no longer eligible for the rebate. GM in particular is hoping that the bill is passed in both the Senate and the House because the company is concerned that the 200,000 limitation may hinder future sales of the Chevy Volt. The Volt is priced at $41,000, and having a tax credit available for the first few years would substantially improve sales for the vehicle and also allow time for technology to improve enough to reduce production costs of the vehicle.

TD Bank Buys Chrysler Financial

It is a very good thing that Chrysler has maintained such good relations with our neighbors to the north.  The latest news does not affect Nissan Dealers Boston but Chrysler is happy to announce that Toronto-Dominion Bank purchased Chrysler Financial for $6.3 billion.  GM, who supplies the Chevrolet Malibu Bradenton vehicles, recently had a hugely successful initial public offering that helped the company financially.  Now that TD Bank is going to be one of the largest lenders for North American auto purchases, Chrysler should have a less rocky path back to recovery.  It is unknown if this deal would impact buyers who wanted to purchase a New Golf from their local VW dealership.

The auto industry has been an ever-changing market in the last decade or so.  We saw peak sales back in 2000 and the lowest sales ever in 2009.  Expert analysts are predicting a strong return now that auto loan lending requirements have become less stringent.  The reins were severely tightened after high sales in 2006, and many well-qualified buyers were not able to obtain a vehicle loan.  That has put people in the mindset to drive their current vehicles longer than usual, resulting in a lower supply of used cars and further higher prices for used cars.

Chrysler and GM both obtained financial assistance from the U.S. Government in recent years.  GM’s first IPO managed to raise $23 billion and reduce the amount that the U.S. Government has an interest in the company to only 33%.  Currently, Fiat SpA owns 20% of Chrysler and back in 2007 Cerberus purchased almost 80% of the brand from Daimler AG for $7.4 billion.  Chrysler Financial is separate from the entire Chrysler name and they currently have $7.5 billion worth of outstanding loans from U.S. dealerships.  The goal of TD Bank is to rename Chrysler Financial within the next year and strengthen the reputation of the brand. 

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