Filed under: Sedans/Saloons, Wagons/Estates, Government/Legal, Green
Jetta TDI buyers to get $1,300 back from the IRS
Now that Toyota has sold so many Priuses that the popular hybrid no longer qhalifies for federal tax credits, and they are essentially sold out until the new generation cars show up next year, people might be wondering where to go for a high mileage vehicle. Volkswagen's new 50-state legal Jetta TDI is going on sale around about Labor day and our good friends at the IRS have decreed that people who purchase one will be able to get a check back from the feds for $1,300. The clean diesel Jetta qualifies under the Advanced Lean Burn Technology Motor Vehicle income tax credit. That would bring the price premium for the diesel to only $700 over a comparable Jetta with a gas engine. The EPA has rated the Jetta at 29/40mpg city highway with a 6-speed DSG gearbox. Real world numbers are likely to be closer to the low 40s for most drivers, but we'll be finding out for ourselves soon. At the first drive of Mercedes new BlueTec diesels last month, company officials expressed hope that those vehicles would also qualify for the credit. Thanks for the tip, Conner!
[Source: VWvortex]
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Reader Comments (Page 1 of 4)
MGBYG 10:39AM (7/24/2008)
The $1300 may help to pay for the Diesel ($5.25/g here in southern CA)...
Still would prefer a 6-sp with a clutch pedal, though.
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Sam Abuelsamid 10:46AM (7/24/2008)
The Jetta TDI is available with a DSG or 6 speed 3 pedal manual
Allan 10:57AM (7/24/2008)
That's certainly a good way to look at it. Or you can look at it that you're having to fill up less but spending a little more when you do and essentially paying close to the same $ overall... then it's just a matter of which is better for the environment. And from what I've read, the TDI wins that.
John 10:41AM (7/24/2008)
I don't know... chicks with diesels just seems wrong.
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zamafir 10:43AM (7/24/2008)
Nice, glad to see there's some tax incentive for purchasing the only 50 state legal, urea free diesel. per the real world figures, low 50s on the highway will be the norm for those not constantly riding the car to it's short redline.
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asurroca 10:44AM (7/24/2008)
About friggin' time deisel-heads get a tax credit. That does it; the few TDIs Volkswagen brings to our shores are going to be sold out even faster, while the gas models continue to languish. Maybe once the Jettas sell out, they'll finally work on bringing diesel Tiguans, Passats, and more importantly, Rabbits?
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Seminole 10:49AM (7/24/2008)
There is actually a one that looks just like that, same graphics and everything, out front of the local VW dealer.
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Johnnie 10:50AM (7/24/2008)
VW dealership in CO has one that looks like it as well.
J M C 3 10:59AM (7/24/2008)
You should go and ask them; if You buy it and leave the graphics on it,would they pay You to advertise.or subsidize Your lease.
zamafir 11:02AM (7/24/2008)
... um, every dealer should. they're the demo cars.
Seminole 11:06AM (7/24/2008)
zamafir,
I know that. But I don't if EVERY dealer has one, since they are apparently in short supply. So maybe they are rotating demos that each dealer gets for a few weeks or something like that. I hadn't heard about dealers getting them yet so I thought it was worth posting.
zamafir 12:28PM (7/24/2008)
per my last contact with vwoa every dealer should have one, just as every dealer had a demo tiguan before the car released, or gti, or any factory demo every dealer gets prior to a volume seller being released :).
Johnnie 10:51AM (7/24/2008)
I think this is great news!!!!
If I was commuting further, I would probably highly consider one of these.
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J M C 3 10:54AM (7/24/2008)
About these 'Tax credits' ?...What's to stop a manufacturer from building the credit into the sticker price?
For example.A manufacturer could say"Well they're gonna get back $1,200 from Uncle Sam so let's raise the sticker,Oh,say $ 900".
I just don't see how something like this would be fair to the taxpayer if this scenario plays out.
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2007RC46SP2 11:02AM (7/24/2008)
+ your stuck with the higher monthly payment.
it would be nice if it was a credit towards the car at the time of purchase, that could lower your amount financed to keep payment down.
that works out to $20-25 per month roughly.
montoym 1:41PM (7/24/2008)
Well, honestly nothing stops them from doing that. But, if a smart buyer shops around and finds a dealer who is not doing that and buys the car for cheaper, then it won't matter. It's not like every dealer will do that.
It's no different that raising the price of a car because it's popular. No one stopped anyone for buying PT Cruisers for double the MSRP when they came out. Same with the first New Beetles.
The dealer sets the price of the car, not the Manufacturer. it's up to the buyer to determine if the deal they received is the best deal available.
montoym 1:48PM (7/24/2008)
Edit: I re-read your comment and noticed you were speaking of the manufacturer and not the dealers.
The manufacturer does set the price. But, I think there would be a large backlash if they were to do that for a couple of reasons. One being that VW has already announced the prices for the Jetta TDI. So, they'd have to suddenly come out and say, "Oops, we were wrong, the real price is $XX,XXX." I don't see that happening. Especially if the increase just happens to be identical to the tax credit.
Secondly, they priced it to be competitive in the marketplace. You don't keep that competitive advantage by raising the price $1300 arbitrarily. They priced the Jetta TDI to be similar to the Prius. With an additional $1300 added, it's no longer a similar price.
Basically, again, no one is stopping them from doing it, but from a business standpoint, it makes virtually no sense.
J M C 3 5:46PM (7/24/2008)
I think the temptation would be there for the manufacturer to raise the price because of the tax incentive to the consumer.
It's something that our government needs to do (stop wasting tax money)especially since these incentives were instituted before gas became over $4 per gallon.
Seems to me that's incentive enough for people to move to more fuel efficient vehicles.Which is what they're doing in droves.
cowboy bob 11:03AM (7/24/2008)
So let me get this straight. My United States tax dollar is going to a foreign car manufacturer to encourage Americans to buy cars built in a foreign country, and further reduce American jobs and manufacturing. This is just the kind of thing that is wrong with this country. Why wouldn't the government offer REWARDS to our OWN companies here ? I despise politicians who vote this stuff into law.
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fixitfixitstop 11:09AM (7/24/2008)
What's wrong is that, at almost model year 2010, Chrysler has no small car at all, and Ford and GMs still offer no true diesel or legit hybrid cars. The US government has created the initiative for them to do so....heck, the MARKET has created that initiative, but still....no action.