HEV Sales Goes Up; Governments Offer Tax Incentives; Will Hybrid Electric Cars Dominate the Roads in the Future?Video

Dec 08, 2016 06:51 AM EST | Leonora

HEV or hybrid electric vehicle companies have been enjoying increased sales as more and more people prefer to buy what are considered as green cars. Governments promoting greener and safer environment strongly support the market by giving tax incentives to customers who purchase electric vehicles. Car companies also encourage buyers to go for HEV by offering discounts and other privileges, making HEV sales go up and the market to expand.

Tax incentives for HEV buyers have been implemented in the United States of America, depending on the customer's annual tax due and the state where the car is purchased. In most states, customers who have tax due of $7,500 or more may enjoy $7,500 worth of tax credit. However, those with smaller tax due will get tax credit equivalent to the tax amount that they have to pay, according to Edmunds.com. This means that for an HEV buyer who needs to pay $2,000 in taxes, only $2,000 tax credits will be given while those who have to pay $15,000 or more will still get the $7,500 maximum tax credits.

Because of these tax credits, customers purchasing HEV that costs $35,000 may be able to pay $13,500, less than one-half of the original price. Company incentives are also given such as 0-interest when paying by installment a Nissan Leaf car, according to Inside EVs.

In the United Kingdom, a Finance Bill will soon be passed, featuring new tax rates for car leasing companies that are based on their level of emission. The lower the emission, the lesser taxes customers need to pay while the higher the emission level is, the higher will be the taxes to be paid, according to Fleet News.

While it is predicted that at present, the new tax rates might stunt sales because customers will wait for 2019 to buy an HEV, still, the future of this type of veciles is assured and the roads in the future will be filled with green cars. 

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