I don’t think the model Y is less of a vehicle. Advertise with CleanTechnica to get your company in front of millions of monthly readers. (Smarten up, guys.) Please select a model. And the Rav4P is affordable by comparison. Though the initial cost places the RAV4 Prime at the top of the RAV4's model hierarchy, the Prime currently qualifies for a $7500 federal tax credit from Uncle Sam. You convert it to a roth IRA, effectively pay $10k in taxes, and then have $20k grow tax free. Now compare that situation with keeping the $20k in the 401k, having it triple in value to $60k, then paying taxes on the $30k gain. View All. 2021 Toyota RAV4 Prime plug-in hybrid SUV slides in under $40,000. Plus, you could qualify for a tax credit up to $7,200 with the RAV4 Prime… As with other Toyota hybrids, the RAV4 Prime comes with a continuously variable automatic transmission (CVT). So how does the tax credit work? If I owe an additional $7500 in taxes at the end of the year then I can use the credit from buying this car? Notify Me. You still paid $7500 in taxes, so you would have enough for the full EV credit. The 0–60 mph sprint takes just 5.7 seconds — making it the fastest RAV4 ever and faster than almost any other crossover SUVs in America (except for … And then in many states, including California, other incentives will make it decidedly more affordable. The amount is determined by the power storage of the battery. That will depend on … and an 18.1 kWh battery, which is large enough to qualify for the full $7,500 federal tax credit. If you consider that the MSRP of the regular hybrid RAV4 is $28,500, shelling out a few thousand more for a Prime might be worth it. The best part is the new RAV4 Prime, with all-wheel drive standard, can be had for under $32,000 after the federal tax credit. If it’s over half of your income, I agree that’s not a which purchase. Tesla Is Migrating From Programming Logic To Neural Nets For FSD Decision Making — What That Means (Video). I know some states have refundable tax credits like Colorado. Corvettes and Mustangs are often called affordable because they compete with supercars. There is also a hint that Toyota is unsure of what tax credit programs will look like next year, but that is clearly an attempt by the company to cover up for its incompetence at the executive level. Press J to jump to the feed. News is published on CleanTechnica.com, while reports are published on Future-Trends.CleanTechnica.com/Reports/ and buying guides are here. The most efficient and highest-performing RAV4 to date won't break the bank. Federal Tax Credits for New All-Electric and Plug-in Hybrid Vehicles Federal Tax Credit Up To $7,500! Tax credit for the purchase of a new plug-in electric drive motor vehicle. In Q4, the RAV4 Prime’s second quarter of sales since its US launch, the pace was twice that of its first three months of sales. It's all perspective, we are a family of 5 comfortably living off 58k a year in Colorado. Family of 4 making $114k is hardly “rich”, especially in CA or NY. SE AWD (Estimated Payment) $432 Monthly Payment. Toyota. With options, the price can balloon to over $47,000. On top of this, the 2021 RAV4 Prime is eligible for up to a $7,500 tax credit from the IRS. In some places, the vehicle may … The full $7,500 tax credit lasted until Dec. 31, 2018. What other states have refundable ev/phv tax credits? Tesla model 3s used to be back ordered 6 months but they weren’t jacking up MSRP due to demand. The vehicle can also qualify for discounts from local utility companies as well as regional plug-in incentives like the $1,000 California Clean Vehicle Rebate. One of our favorite aspects of the RAV4 Prime is that it’s quicker than the famed Toyota Supra. The 18.1 kWh batter capacity qualifies RAV4 Prime for up to the $7,500 federal tax credit and additional state in some states. According to Toyota, at the purchase of your brand new Prime, you will be eligible for up to $7,500 in federal tax credit. The 2021 RAV4 Prime, however, is eligible for a $7,500 federal tax credit. You point out MSRP comparisons but how many of us can find the RAV4 Prime we want that isn’t marked up 10k over MSRP. I guess your right, upper class starts at $72k for a single person. For example, say you have $8000 withheld from your paycheck over the course of the year by your employer. $114,000 a year! Min’na genki ni natte. How is the Model Y a worse car? For Top US Coal Mining State, New, Cheap Electric Energy Storage System (Like Pumped Hydro, But Subterranean! Prices for the 2021 RAV4 Prime officially start at $39,220 with destination, although a $7,500 tax credit can help drive down the cost depending on your eligibility. It seems orders for the car have far exceeded Toyota’s plan to make a modest 4,000 examples of the RAV4 Prime for the home market this year. Due at signing: $3,082. RAV4 Prime customers also may qualify for an $7,500 federal tax credit. RAV4 Prime customers also may qualify for an $7,500 federal tax credit. $114,000 a year! Hitssquad is correct, the EV credit goes against the tax you owe for the year. It has also spread the rumor that it’s better for the environment for it to build lots of “self charging” hybrids with wimpy little 1.8 kWh batteries rather than a few full battery electric cars because “battery supplies are limited” and lots of cars with tiny batteries are a better use of scarce resources. (adsbygoogle = window.adsbygoogle || []).push({}); Appreciate CleanTechnica’s originality? I think you could be cherry picking on features also, you don’t mention how Model Y is faster, will most surely have a better safety rating, doesn’t have an extreme breaking distance like the Prime, and has better tech. Family of 4 with no other tax credits except child tax credit. But OP brings up a legitimate point that some people don’t understand in that the $7500 tax credit is only available if you have that tax liability in the first place. Here is an example of what it takes to get a a full $7500 credit. Find 2021 Toyota listings for sale near you. So can I just change my with holdings now to reduce how much I'm paying so by time the end of the year comes around I didn't pay enough? The real surprise is that the price I had negotiated (half way between MSRP and Invoice) and agreed to pay for the 2020 RAV4 Hybrid Limited max trim is only $1548 less than my R4P after State & Federal tax credit. It Might Be A Perfect Strategy! Steve Hanley Steve writes about the interface between technology and sustainability from his homes in Florida and Connecticut or anywhere else the Singularity may lead him. At the same price point, the Y seems way better unless you're often taking really long roadtrips. Horse puckey! The RAV4 Prime will start at $44,990 (plus freight and delivery), meaning it qualifies for the maximum $5,000 EV rebate from the federal government. Inside EVs asks this highly pertinent question: “What is the problem, and why did it happen in times of general slowdown of car sales, when a surplus of manufacturing capacity over sales could be redirected towards plug-ins?”. Toyota is one of those companies that has been shedding big crocodile tears about how nobody wants to buy electric cars. Lower middle class in expensive localities. Then when you do your taxes in April you find out you get a $500 refund (not taking any EV credit into consideration). Most people just see it and automatically knock $7500 off MSRP. $4,000. Press question mark to learn the rest of the keyboard shortcuts. And about $65,000 a year for a single person. Cookies help us deliver our Services. 65k annual salary is solidly middle class. Federal Tax Credit. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries. Paying taxes on $30k is going to cost you more not less than the $10k amount you paid taxes on for the roth IRA conversion. What makes it more attractive is that it’s standard with all-wheel drive. Honestly, if you don't earn that much, you can't afford this vehicle. Changing your withholdings doesn't change your tax liability. Search Local Cars for Sale . Family of 4 with no other tax credits except child tax credit. Just 3 weeks after the start of production for the RAV4 Prime, Toyota has announced it won’t build any more for a while. Up to $10,000 in tax credits and rebates are potentially available for the Toyota RAV4 Prime. Sweet! Reports in the Japanese media suggest Toyota simply failed to line up a large enough supply of batteries to meet the demand, even though all the batteries for the planned home market production of 4,000 vehicles would only require about 5.5 MWh of batteries — a very modest amount in today’s world in which battery factory output starts at 10 GWh and goes up sharply from there. Find the best Toyota RAV4 Prime discounts and current offers. Sign up for our free daily newsletter or weekly newsletter to never miss a story. The plug-in versions of these models, however, do qualify. However, if you only owed $6500 in taxes and were in line for a $1500 refund, you would only get $6500 of the EV credit. Just one month ago, we brought our readers news of an all new RAV4 Prime that broke with Toyota’s past practice. But you have to realize that it actually qualifies for the full $7,500 federal tax refund. Toyota has priced the 2021 RAV4 Prime at $38,100 for the SE trim and $41,425 for the XSE trim. Combining the California and federal credits, you could get up to $10,000 off the 2021 RAV4 Prime. Browse the latest 2021 Toyota RAV4 Prime deals, incentives, and rebates in your area at Edmunds.com. One suspects the big bosses at Toyota simply didn’t believe the car would sell well and failed to arrange for an adequate supply of batteries. New Car Quick Quote. It also has an electric motor that pumps up total horsepower available under the driver’s right foot to 302. I'm pretty sick of all these motoring articles always going on about how affordable the rav4 prime is with the tax credit. But lucky for us, the RAV4 Prime is a green car which means it qualifies for some government incentives. Credit amount depends on the car's battery capacity. The 0–60 mph sprint takes just 5.7 seconds — making it the fastest RAV4 ever and faster than almost any other crossover SUVs in America (except for one that features falcon-wing doors). RAV4 Prime customers also may qualify for an $7,500 federal tax credit. It’s also eligible for a $7,500 federal tax credit. Individual state incentive information can be found at CleanTechnica is the #1 cleantech-focused news & analysis website in the US & the world, focusing primarily on electric cars, solar energy, wind energy, & energy storage. The RAV4 Hybrid tops out at $36,880 for the Limited. This IRS tax credit can be worth anywhere from $2,500 to $7,500. Hogwash. But remember the federal credit is not refundable. But the Prime secures the federal government’s maximum plug-in tax credit, $7,500 for qualifying shoppers, to reduce its net starting price to just under $32,000. The RAV4 Prime XSE starts at $42,545, plus an extra $3,765 if you want the Premium package. ), Low-Cost, Cobalt-Free Batteries Coming From Panasonic In 2–3 Years, Just One Year Later, Sony Vision-S Electric Car Hits The Road. Search car listings & find the right car for you Click here for 2021 Toyota RAV4 Prime SE local listings. Actually, curb your enthusiasm there, pardner. Tags: Toyota, Toyota Rav4, Toyota RAV4 Prime. Unless you really want it, I would start saving today and hopefully by the time the credit starts to expire, maybe it'll be closer to your total liability and dealers may be more willing to negotiate on prices. Searching Locally. And about $65,000 a year for a single person. If you are buying a car worth more than 50% of your salary, you really can't afford it. That is almost as inconceivable as introducing a new gasoline powered model and forgetting to order pistons. 72% Plugin Vehicle Market Share in the Netherlands! Keep in mind the Prime will be eligible for a $7,500 federal tax … Personally I’m just frustrated with Toyota for pulling this stunt. A Lexus NX or an Acura RDX or a Mazda CX5 Sky are basically the same price as a Rav4P and are by almost all measures worse cars. But remember the federal credit is not refundable. I change my mind and cancel the hybrid and tell them to keep the deposit for my RAV4 Prime purchase. Go Get Car Price Change Alerts. Get Your Price. The car itself is between $38k-48k sticker. Here is an example of what it takes to get a a full $7500 credit. 0 found 2021 Toyota listings within 25 miles of your ZIP code. In both of these examples, if you used the EV credit, you'd be getting back $8000 at tax time (overpayment amount + EV credit). Perhaps the large number of orders for the RAV4 Prime will shock upper management into realizing the EV revolution is real and they better get on the bus PDQ or get left behind as Tesla and other companies eat their lunch. A Tesla Model Y starts at 48k and at it's entry level price point is in most circumstances a worse car than the Rav4P. The content produced by this site is for entertainment purposes only. Reddit's original Toyota RAV4 Prime discussion community. Contact us here. The deferral advantages are fully preserved. The credit amount will vary based … (They’re not too interested in the hydrogen fuel cell powered cars the company has been promoting for the past 5 years, either.) It has a plug (GASP!) I'm pretty sick of all these motoring articles always going on about how affordable the rav4 prime is with the tax credit. Personalize Incentives. In general, all electric vehicles can claim more of the credit than plug-in … You can follow him on Twitter but not on any social media platforms run by evil overlords like Facebook. No, because it's based on liability. Term Length (months): 36. Just as an example, say you have a 401k with 20k balance, of which 10k is gains. The 2021 Toyota RAV4 Prime unveiled and on display | FREDERIC J. BROWN/AFP via Getty Images. Individual states have additional incentives that can be either be applied at time of purchase or via a rebate program, depending on the state. I've seen some very misleading dealer posts about tax rebates. The Prime is also the most powerful Rav4, with a combined 302 hp when operating in hybrid mode. The RAV4 Prime plug-in hybrid could still be a hit, allowing large numbers of Toyota customers to commute emissions-free. From Jan. 1 to June 30, 2019, Tesla customers could qualify for credits of up to $3,750. sort of defeats the purpose of the tax deferral. We selected the Toyota RAV4 based on its proximity to the Toyota RAV4 Prime based on brand, size, and price. By using our Services or clicking I agree, you agree to our use of cookies. Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? It’s disgusting. Nobody wants a car you have to plug in? Conversely, if you had 2 kids in college and got a $2500 credit for each of them and didn’t make a lot of money that year, you may not qualify for any of the EV credit. All-electric and plug-in hybrid cars purchased new in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The company you save could be your own. RAV4 Prime availability will be even more limited when the full FIT credit is close to expiry. Why Are Tesla Vehicles Not Perfect? Say it triples in value by the time you retire and is worth $60k which you can spend tax free. Where do we sign up? But if … by Steve Hanley. Published on July 1st, 2020 | Basically even though you paid the taxes earlier in the Roth conversion case, you paid less in taxes and that compensates. Honestly, the way I see it is that if you can not afford to get the full tax credit, the car is likely too expensive for you. $7,500. More Renewable Energy (Finally!) Advertised Lease Deals. Actually no. Great point about cost of vehicle versus income. While the new RAV4 Prime costs more than the standard hybrid model, buyers are eligible for a federal tax credit of $7,500. The context of the articles and discussions I have seen is not "the Rav4P is an affordable car", the context is "the Rav4P is affordable compared to other luxury compact crossovers.". Consider becoming a CleanTechnica member, supporter, or ambassador — or a patron on Patreon. CleanTechnica member, supporter, or ambassador, In Midst Of Insurrection, Texas Roots For Green Hydrogen Future. The good news, though, is that the RAV4 Prime does qualify for a full $7,500 federal tax credit – so you could (theoretically) walk away with one for much cheaper. With the 2021 Toyota RAV4 Prime, you get an estimated 600 miles of range and can drive for 46 miles in EV mode. Newsletter to never miss a story Market Share in the roth conversion case, you get an estimated miles. Worth $ 60k which you can follow him on Twitter but not on any social media run! $ 3,750 is close to expiry paid $ 7500 credit miles in EV mode even though you paid taxes. Paid the taxes earlier in the Netherlands tip for CleanTechnica, want to suggest a guest for our Talk. More attractive is that it ’ s also eligible for a $ 7,500 federal tax credit IRA, effectively $! On its proximity to the $ 7,500 listings within 25 miles of your ZIP code electric that! $ 3,750 all these motoring articles always going on about how affordable the RAV4 Prime is that ’... More attractive is that it ’ s over half of your income, agree! Forgetting to order pistons selected the Toyota RAV4 Prime for up to a roth IRA effectively... More attractive is that it ’ s over half of your ZIP code rebates are potentially available the! Attractive is that it ’ s not a which purchase storage of the tax credit up the... 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Social media platforms run by evil overlords like Facebook and that compensates hybrid tops out at $ 72k a. 8000 withheld from your paycheck over the course of the keyboard shortcuts ordered 6 months but they ’!

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