Will E Worm
Conspiracy...
UPDATE: Dealers Pocketing $7,500 Chevy Volt Tax Credit?
UPDATE: Several sources have reported that the practice described below appears to be confined to a few isolated incidents, if at all, and a General Motors spokesman called the NLPC 'confused.' The NLPC meanwhile in a follow-up cried foul on GM's claim that there's "high demand" for the Volt and argued for greater transparency on the tax credit. While we couldn't reach GM for comment at the original post time, we've updated this piece to reflect later communication with the company.
Auto dealerships might not be as smoke-filled and full of tricks as they used to, but a few bad seeds continue to perpetuate the old slick stereotypes.
And they're at it again—this time with our hard-earned tax money. According to an ethics and corruption watchdog group, the National Legal and Policy Center (NLPC), GM's new-car dealers are participating in a new scheme: applying for the $7,500 federal tax credit on a new-stock Volt, then 'selling' it to another dealership to pass it off as used.
The alleged game: One dealership titles the vehicle, sells it to another dealership, and that second dealership (perhaps) splits the tax rebate with the first one.
The federal government's $7,500 tax credit on electric vehicles is a big deal. For one, it takes the sticker price of the 2011 Chevrolet Volt down to a much more accessible $33,500. And secondly, it helps kickstart a charging infrastructure and a fledgling sector of the auto industry.
And if there aren't enough actual Volt customers getting the federal rebate they're supposed to, it could be affecting the model's sales, as well as its resale value.
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Just don't buy one without getting the tax credit.