Why Hybrids Are Winning Over Electric Cars: The Road Less Electrified

Why Hybrids Are Winning Over Electric Cars: The Road Less Electrified

Electric vehicles (EVs) have been hogging the spotlight lately, from the sleek Tesla Model 3 to the mighty Ford F-150 Lightning.

But here’s the twist – not everyone’s rushing to jump aboard the electric train. Instead, they’re making a pit stop at the hybrid station. But why is this happening?

EV Sticker Shock

The average price tag of a brand-new electric vehicle is a hefty $53,469, according to Cox Automotive. That’s not exactly pocket change for most folks.

Add to the mix the ever-present fear of running out of juice and the not-so-widespread charging infrastructure across the U.S., and you’ve got yourself a recipe for second thoughts about going fully electric. The fear of the EV battery going empty has become the new epidemic, affecting the young and old.

So, what’s the deal? Well, as Bloomberg reports, folks aren’t waving goodbye to their trusty gas-guzzlers and leaping into EVs just yet. Instead, they’re cozying up to hybrids – those nifty vehicles that blend electric power with good old gasoline. According to analysts at GlobalData, hybrid car sales have more than doubled in the United States since 2020.

So, Why the Hybrid Hype?

Now, you might wonder, “Why hybrids when they still thirst for gas?” It’s a fair question. But picture this: popular hybrids like the Toyota Prius can sip gasoline so frugally that they can hit up to a jaw-dropping 57 miles per gallon in city and highway combined driving. For folks used to the convenience of gas stations on every corner, that’s a game-changer.
But here’s the thing, major shifts in the automotive world don’t happen overnight. As Jeff Schuster, the automotive executive vice president at GlobalData, puts it, the auto industry doesn’t work like a magic wand. Hybrids are the stepping stone, the way the masses can start tiptoeing toward fully electric vehicles.

The Giants Take Notice

Big-name automakers are catching on to this trend. Take Ford, for example. They’ve been pumping billions into electric vehicles but are also giving hybrids some love. They’re ramping up hybrid F-150 production and slashing prices to compete with their gas-powered siblings. Even Ford’s CEO, Jim Farley, expressed surprise at hybrids’ growing popularity.

On the other side of the spectrum, Toyota isn’t just diving headfirst into EVs. They believe in giving buyers choices. After all, they’ve spent over $50 billion on EVs but still see a place for hybrids and other powertrains. As former chairman Akio Toyoda once put it, Toyota is like a department store offering a variety of options, and they won’t tell you what to buy.

Understanding the Electric Vehicle Tax Credit for 2023

Understanding the Electric Vehicle Tax Credit for 2023

In recent years, the sustainability movement has been gaining traction, perhaps due to growing awareness of the contribution of human activity to the increasing environmental degradation.

The Electric Vehicle (EV) tax credit is Uncle Sam’s attempt at jumpstarting the electric vehicle revolution. A federal tax credit provides a financial incentive for individuals who purchase an electric vehicle. Here’s what you need to know about the EV tax credit for 2023.

How the EV Tax Credit Works

The EV tax credit is a dollar-for-dollar reduction in the amount of federal income tax owed by the taxpayer. If the amount of the credit exceeds the taxpayer’s tax liability, the excess credit can be carried forward to future tax years. The amount of the credit depends on the battery capacity of the electric vehicle and the taxpayer’s income.

Qualifying for the EV Tax Credit
To qualify for the EV tax credit, the electric vehicle you choose must meet certain requirements. The vehicle must be new or used, and it must be purchased or leased by you as the taxpayer. In addition, the EV must also meet certain battery capacity requirements.

If the vehicle was purchased and delivered before April 18, 2023, the critical minerals and battery sourcing requirements do not apply. Instead, the credit amount is calculated as $2,500 if the battery has at least a 7-kilowatt-hour capacity, plus up to $5,000 for additional kilowatt hours above the base requirement of 7-kilowatt hours.

EV Tax Credit Amounts
The amount of the EV tax credit depends on the battery capacity of the electric vehicle and your income. As of 2023, the maximum tax credit is $7,500 for new electric vehicles and $4,000 for used electric vehicles.

The credit amount is reduced for taxpayers with higher incomes. The credit begins to phase out for taxpayers with incomes above $150,000 for joint filers, $112,500 for a head of household, or $75,000 for an individual.

Which Electric Vehicles Qualify for the EV Tax Credit?
Keep in mind that not all electric vehicles qualify for the EV tax credit. Your vehicle must meet certain battery capacity requirements and must be manufactured by a qualifying manufacturer (in North America). The IRS maintains a list of qualifying electric vehicles on its website. The list includes both new and used electric vehicles.

Common Toyota Prius Issues: Excessive Oil Consumption

Common Toyota Prius Issues: Excessive Oil Consumption

The four-door Toyota Prius hatchback scores top marks as the best delivery vehicle in the US. Delivery drivers get cargo space and fuel efficiency – the best of both worlds.

This fuel efficient four cyl 1.8 L sedan is not only built to last forever (almost), but it also has plenty of cargo space for all your needs. This fuel efficient four cyl 1.8 L sedan is not only built to last forever (almost), but it also has plenty of cargo space for all your needs. Plus, with Toyota charging stations becoming increasingly widespread, you don’t have to worry about losing a charge on the road.

However, some owners have reported that their Prius’ have been consuming excessive amounts of oil, especially the 2010 and 2011 models.

Toyota Prius Oil Issues

If you own a Toyota Prius, you must be aware of the excessive oil consumption issue and have your car checked by a pro mechanic – if you suspect a problem. Excessive oil consumption can lead to engine damage – it is vital to catch the problem early and fix it.

The most common root of the issue is a faulty timing cover gasket. Sometimes, a replacement of the gasket does the magic. However, there are reports of Prius owners that had to overhaul the whole engine because of the issue – quite unfortunate!

Toyota had a past recall for the 2010 and 2011 models affected by this issue, so the newer models are possibly clear of the problem.

If you have these model years, contact A1 Performance Auto repair to schedule a free repair. In the interim, here are a couple of tips to conserve oil if your Prius is affected by this issue:

  • Check the level of the oil often and top up as needed
  • Avoid short trips and idling whenever possible
  • Drive at moderate speeds and avoid sudden acceleration or braking

Following these tips can help minimize the amount of oil your Prius consumes until we check it out. If you have any concerns about your Prius, contact us at A1 Performance Auto Repair.

Federal Tax Rebates for Purchasing an Electric Vehicle

Federal Tax Rebates for Purchasing an Electric Vehicle

Apparently, electric vehicles are the future, and the transition has already begun. The US Federal Government is incentivizing the move to electric to encourage more people to abandon fossil fuel-powered autos. This is in a bid to reduce greenhouse gases. But are all-electric vehicles eligible?

Eligibility for Electric Vehicle Federal Tax Credits

Eligibility is only for all-electric and plug-in hybrids bought in or after 2010. While the small neighborhood electric vehicles do not qualify for these federal credits, they can still benefit from others.

The credit is up to $7,500, and the amount you will get depends on the battery capacity. But will it affect other incentives? The good news is the federal tax credits will not affect your eligibility for the state or other local e-vehicle incentives.

Other requirements involve certification by the manufacturer. For example, the electric car must be produced by a manufacturer and not converted to electric. It must be treated as a motor vehicle according to the Clean Air Act, and the gross vehicle weight rating (GVWR) does not exceed 14,000 lbs.

But that’s not all. The electric motor should draw power from a battery of not less than four kWh and must be doing the most to propel the vehicle. The vehicle must be new, must be used in the United States, and the original use starts with the taxpayer. It should not be for resale and should be placed in service in or after the 2010 calendar year.

How Do You Claim the Credit?

You fill this form for an eligible plug-in electric vehicle to get the credit. If the electric motor vehicle is for personal use, fill out the credit form here in the appropriate line of the individual tax return.

You can utilize the credit for alternative minimum tax for vehicles purchased in 2010 or after. But if the vehicle is for business use, complete the form for the General Business Credit.

Berkley to Likely Ban Gas-Powered Vehicles by 2027

Berkley to Likely Ban Gas-Powered Vehicles by 2027

Berkeley is considering a gradual phase-out of gas-powered vehicles by 2027 to reduce greenhouse gas emissions significantly. The city council expects a feasibility study on January 19 before considering a law that will phase out 80% of natural gas, diesel, and gasoline vehicle sales.

Council member Kate Harrison is among those pushing for the ban. Harrison believes that the sales tax revenue will grow by having dealerships selling mostly electric vehicles, which could boost sales within the city limits.

According to Harrison, the ban is a realistic move towards a fossil-fuel-free future.

The city expects to convert its fleet of vehicles to all-electric.

According to a staff report, Berkeley will apply the ordinance on a staggered timeline. Vehicles valued more than $28,000 will be the first to go by 2025 and $23,000 by 2026. The rest of them will be phased out by 2027.

There is no timeline for when the city council will vote to ban gas-powered vehicles.

Berkley Has Been a Pioneer for Radical Environmental Policies

Berkley has never shied away from taking the lead in radical environmental policies, initiatives that have been adopted by numerous other cities across the country. Berkley banned installing natural gas lines in new homes, becoming the first city to do so in the United States.

In the same year, the city banned single-use disposables, requiring the food industry to use compostable utensils and packaging. Berkley was also among the first to introduce curbside recycling.

Following in the Footsteps of California

This comes after Govenor Gavin Newsom, announced plans to ban the sale of new gasoline-powered vehicles by 2035. Newsom signed an executive order requiring all cars sold in California to be zero emissions, a category that includes hydrogen fuel cell vehicles and battery-powered electric vehicles.

California Rebates for Energy Efficient Cars

California Rebates for Energy Efficient Cars

The California electric car rebates are part of a program to help the environment while also putting money back into your pocket. By purchasing an electric vehicle in California, you can save thousands of dollars by accessing discounts when riding on specific roadways in California and gaining tax credits.

Clean Vehicle Rebate Program (CVRP)

By lowering the initial cost of energy-efficient cars, CVRP aims to reduce emissions. The rebates are only available for California residents who purchase or lease an eligible vehicle and meet specific income requirements.

Please note that higher-income consumers with income above the income cap are not eligible for the rebates. The income gap applies to all vehicle types that are eligible except fuel-cell electric vehicles.

On the other hand, consumers with household incomes below or equal to 300% of the federal poverty level can receive an increased rebate amount. The rebates apply to battery electric vehicles, fuel cell electric vehicles, and plug-in hybrid vehicles.

Other requirements include:

  • A signed Terms and Conditions
  • The most recent CVRP Implementation Manual available
  • A signed application for rebate

The implementation manual and the terms and conditions will determine eligibility for the program. These documents are updated often every year, and the changes can impact your eligibility for the program. You can learn about the next anticipated date for the changes at CVRP FAQs.

Applying for Electric Car Rebates

No doubt, electric cars’ cost is high, but the CVRP program reduces the cost to a certain level. Through the electric car rebates, you can obtain credit on federal taxes, carpool benefits, state rebates, and toll roads discounts.

You are eligible for CVRP within 18 months of acquiring an eligible vehicle.

You will need the following when applying for the electric car rebates:

  • Purchase agreement or vehicle lease
  • SEC Service Account Number
  • Vehicle registration card

Get more details in the CVRP Implementation Manual for program implementation and eligibility information.

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