Just like any other government hand out that exists, the EV tax credit has its loopholes. Probably the most extorted and abused loophole is the fact that the United States turns a blind eye to owners of the 2022 Toyota RAV4 Prime who simply buy the car just for the tax rebate and then sell the car for an exorbitant markup. That’s why you see brand new 2022 Toyota RAV4 Primes on sale at CarGurus for like $60k.
Because of this, the sales of the RAV4 Prime shot up and so did the RAV4 Hybrid. Now it’s time for the new Toyota EVs to make a debut within the next few years and I can tell you that if most people who were in the market for an EV just for the tax credit will probably not buy anything. Granted, Toyota is respectfully near the bottom of the food chain when it comes to EVs. I think that staying true to their vision of having PHEV vehicles as the future of the automotive industry.
Toyota said they planned to release more and more EV vehicles besides the bZ4X within the next few years and if you take a look at one of our other articles, we showed that most RAV4 Prime owners bought it just for the tax rebate. The cheats who sold it right after were not included. What does this mean?
Well, we know that brand recognition is a very important part in knowing what you are buying. We buy Toyotas because we know that Toyota is a great car and is both affordable and reliable whilst not compensating on anything. Take for instance the Camry. It’s everything you need and more.
Given that Toyota cannot sell any more EV or PHEV cars for a rebate, Lexus still can and so can any other brand that hasn’t reached that market cap number. Could we maybe see Toyota sell their EVs as a different name? Afterall, the more the government hands out the harder it is going to be for companies like Toyota to sell their PHEV and EVs when that tax season phases out. This is why I think we should not influence markets with tax dollars savings. Because then we end up with loopholes and cheats who only go after the money then sell their cars for $60k.
What do you think? What is the future of the Japanese EV industry? 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.