By TechThop Team
Posted on: 15 Aug, 2022
Vinfast is bringing its EV companies to the US, as we reported previously. Since then, congress has announced it will change the $7,500 federal electric vehicle tax credit, which makes getting this sweet tax deduction much harder.
In addition to the means-testing, the tax credit will be sticker-price limited. In some cases, as many as 70% of today's electric vehicles would be ineligible for a tax credit, according to Reuters.
The car manufacturers have scrambled to come up with ways to react, but VinFast has taken a more extreme step than most, offering a $7,500 discount on the car if you have a pre-order from the manufacturer and do not qualify for the tax rebate.
With a 10-year/125,000-mile warranty, VinFast is a brand that stands behind its vehicles, but most importantly, it stands behind its customers! In an email to pre-order holders, the brand states that it stands behind its customers!
VinFast will provide a $7,500 purchase price rebate on the purchase of a VinFast vehicle to customers who are denied the $7,500 federal tax credit under current IRC 30D requirements.
Additional rebate eligibility details are included in the binding agreement. There are a few conditions attached to this offer; customers must convert their non-binding $200 pre-order into a written binding contract.
After Congress changes the program, the $200 refundable reservation fee will no longer be refundable, and the contract the company generates lets you claim the $7,500 tax credit before it becomes non-refundable.
According to the company, the $7,500 discount kicks in if it fails. The $40,000 rebate is pretty clever - although most cars won't be covered, it will make low-end EVs more accessible to consumers and will incentivize manufacturers to make more accessible EVs in the coming years.
There is nothing wrong with electric trucks beating sports cars on drag strips and family saloons being the quickest vehicles on the road, but those are simply marketing headlines.
Putting a dent in climate change requires incentivizing as many people as possible to switch from gasoline and diesel to electric as soon as possible - and selling Tesla Model S Plaids to the 1% isn't going to cut it.
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