Some Chevrolet Volt dealers taking tax credit for themselves

2011 Chevrolet Volt

Looking for a Chevrolet Volt but can’t find it at your local Chevy dealer? While most Chevrolet dealers in the 7 initial launch markets for the Volt claim to be the vehicle on back order, there are three ‘used’ Volts sitting at a Kia dealer in Glendale, California.

While the asking price for the three Volt is $39,995, a modest discount off the $41,000 MSRP, the dealer says that the three units may not qualify for the $7,500 federal tax credit given to buyers of new electric-cars or plug-in hybrids.

Why? Apparently, some dealers are ‘gaming the system’ to claim the battery tax credit for themselves.

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“Many Volts with practically no miles on them are being sold as ‘used’ vehicles, enabling the dealerships to benefit from the $7,500 credit supplied by the American taxpayers on each car,” NLPC’s Mark Modica said in a blog post on the practice. “The process of titling the Volts technically makes the dealerships the first owners of the vehicles, which gives them the ability to claim the subsidies. The cars are then offered to retail customers as ‘used’ vehicles.”

Modica said that he was reluctant to call the process a ‘scam’ and prefers to call it ‘gaming the system.’ While it may be legal, it’s not right he says.

Refresher: The 2011 Chevrolet Volt is powered by 16-kWh, ‘T’-shaped lithium-ion battery that powers the electric drive unit, which allows it to drive 40 miles on battery power alone. The system puts out 149-hp and a maximum torque of 273 lb-ft, allowing the Volt to go from 0-60 mph in about 9 seconds, hitting a top speed of 100 mph. The battery can be re-charged by plugging into a household outlet and takes 4 hours to recharge on 240 volts, and about 10-12 hours on a standard 120-volt outlet. The Chevrolet Volt also carries an 84-hp 1.4 4-clyinder engine that allows the five-door, FWD sedan to travel additional miles while averaging a fuel-economy of 50 mpg. A fully charged battery and full tank of gas will allow the Volt to travel 379   miles. The 2011 Chevrolet Volt gets an EPA estimated 93 miles per ’gallon-equivalent’ when driving under electric power only, 37 mpg when in gasoline mode and over the long term it is estimated to get 60 miles per gallon in combined gasoline-powered and electric-powered driving. Prices for the 2011 Chevrolet Volt start at $41,000 but with a full federal income tax credit (which range from $0 to $7,500), the Volt can cost a total of $33,500.

2011 Chevrolet Volt:

– By: Omar Rana

Source: MSNBC