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Big Chunk of Owners Will Not Buy 2022 Toyota RAV4 Prime Because of Tax Credit Phaseout

In the next few weeks, the United States government will stop giving a $7500 tax credit for the Toyota RAV4 Prime. Because of this, a lot of people waiting for their RAV4 Prime say they will cancel.


I read a meme on the internet a few days ago where it said, “it’s easier to shake the president’s hand than it is to get a RAV4 Prime in a month.” I hate to break it to you, but it’s true. Time and time again we have covered the insane waiting times for the RAV4 Prime and why it takes so long. To imagine how long it really takes, some Canadians are waiting 3-5 years just for a base model RAV4 Prime. Luckily for them they will get the respective model year and not a 2022.

However, this leads to a lot of people making a tough decision. As the United States government phases out the EV tax credit, while people on the list still follow through with it? Surprisingly given the gas crisis the world is in right now, that answer is no for 53% of the people who voted on a poll.

Big Chunk of Owners Will Not Buy 2022 Toyota RAV4 Prime Because of Tax Credit PhaseoutOn Facebook’s Official Toyota RAV4 Prime group, Paul Prose asked, “Since it appears that the Federal tax credit is going away this week, in regard to our cars, and you are on a waiting list, will you still buy the car?” Below that question he put a poll to interact with. Now there were like 4 other answers added in by people who couldn’t answer a yes or no question but for the sake of the argument, I will only use the top answered poll which was yes or no.

Surprisingly, 53% of the poll said they would not follow through with their order. Which means if their deposit was non-refundable, which most of them are, then they are not in the hole and in the market for another car.

John Kotseas said, “I probably would have gone with the regular hybrid.” He also said it was because of price. However, I think that’s not logical. If you were to buy the Prime, you would make up the difference in price within a few years because of the money you are saving on gas.

I think that the more people realize that PHEV is the way to go rather than hybrid or electric, the more this economy will get back on track. If we switch to EV overnight, the number of jobs and business that would go belly up would be astronomical. The right thing to do is to find better energy ways which would help businesses rather than hurt them.

What do you think? Let us know in the comments below.

Harutiun Hareyan is reporting Toyota news at Torque News. His automotive interests and vast experience test-riding new cars give his stories a sense of authenticity and unique insights. Follow Harutiun on Twitter at @HareyanHarutiun and on YouTube at Toyota Time for daily Toyota news.


Mike R. (not verified)    August 15, 2022 - 2:44PM

I wish the EV had a space for swappable battery. So you drive to a station, rent a charged battery (and get it installed/loaded) and drive away without need to wait for charging, very much alike to the gas station. Then you return the extra battery at another station (and get your deposit back).
That will make way more people switch from gas to electric, I promise!

Brian H. (not verified)    August 15, 2022 - 10:14PM

My understanding is that the tax credit will still apply if you had a purchase order in place before the law gets passed. If that’s not the case, it would be great if they could get the word out.

Basim (not verified)    August 16, 2022 - 12:56AM

@Henrt and @Brian H: take a look a the Toyota section in this article. Search on Google for the keywords: If you want an EV, buy now – Rivian, Fisker and others rush to lock in EV tax credits before changes

Once Biden signs the Inflation Reduction Act (that passed both the Senate & House) into law on Tuesday (8/16), Toyota will lose out on all tax credits. The only way to avoid that was to get a signed purchase order (sometimes referred to as a "buyer order") from your dealership, which is typically only given once a vehicle has been allocated to you, you have a VIN, and the vehicle has been released by from port of entry to to the dealer. If you're on a waitlist and only have a deposit, unfortunately you're out of luck.

Hope that helps!

Tim Hannigan (not verified)    August 16, 2022 - 5:38AM

Toyota dealerships have been taken advantage of people looking to purchase a Rav4 Prime. Toyota Corp. has limited certain states to allocation levels. Then the dealerships knowing the Fed Tax incentive, have pushed a surcharge to the customer claiming market conditions. Don't believe it for a minute, the surcharge is 100% profit the dealerships are making to overcome loss of business from the Covid pandemic.

Heath Hatch (not verified)    August 16, 2022 - 8:20AM

EVs are a great idea, but they are still somewhat embryonic in concept. The design and then the sourcing of the components for the current batteries is problematic, the charging of the batteries themselves due to the current state of our infrastructure is problematic, and the range, well that leaves so much to be desired for those of us who live in and not necessarily not work in wetland, mountainous, desert, wide plains, or any other non-urban area of the country as to be a little ridiculous. I know, there are going to be a lot of 'buts' from a lot of people in response to those statements and that's okay. There is a place for current EVs. I am stating that there is a long way to go both in infrastructure and materials sciences before legislation can be put into place to replace fossil fuel transport and, by the way, agricultural equipment, with electric vehicles. There is something to be said for doing something right the first time and with consideration of as many of the variables as we can to begin with in the first place to avoid waste and creating more problems for our planet, after all, we still haven't dealt with where the electricity is going to come from in the main to charge all of these lovely electric vehicles yet have we?

Andy (not verified)    September 6, 2022 - 10:35PM

In reply to by Heath Hatch (not verified)

I bought a Prius Prime PHEV in 2019 and I'd do it over again in a heartbeat. The thing delivers and it runs on gas at the same mileage as a standard Prius when the battery drains out. I get on average 80 miles for every gallon of gas I use. What's not to like?

Peter T Deacon (not verified)    August 16, 2022 - 4:33PM

The reasons I haven't bothered with the RAV4 Prime, are the waiting time, and the dealer greedy mark up's. I can keep driving my gas vehicle until Toyota can produce them on a larger scale. Besides by then something better might come along considering how fast this market is changing.

Peter (not verified)    August 24, 2022 - 11:39AM

In reply to by Peter T Deacon (not verified)

Had my prime for 1 year. After buying in a low demand area and driving back to bay area I have bought gas less than 5 times as i get 52 mile range and can go back and forth to work. Rav4p is the perfect car and uses far less lithium than a full e car. No one is talking about the pollution from sudden movement to ecars in China and US EU.