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Toyota Camry Hybrid: Ordering Process

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Comments

  • terry92270terry92270 Posts: 1,247
    The incorrect word was used. Not a "rebate".

    Until the end of this month, purchasers of Hybrids get a $2600 tax credit on their 2007 Income Tax. ;)
  • Until the end of this month, purchasers of Hybrids get a $2600 tax credit on their 2007 Income Tax.

    It's actually a credit on your 2006 federal income tax, the return for which will be filed (by most people) in 2007.

    Just thought of a question and I'm too lazy to go look it up...I know the hybrid vehicle has to be put into service after January 1, 2006 but is the credit still good on vehicles purchased in say, 2007, if the manufacturer doesn't hit 60,000 in 2006?
  • terry92270terry92270 Posts: 1,247
    Well, in my world, 2007 taxes are the year I do them in.... :P

    No, I don't think it works that way....you have to claim the credit on the tax year it was specified in. I am fairly confident Congress will extend or offer a new scheme when they get back from the Novemember elections, to make themselves look good for the 2008 elections. ;)
  • wvgasguywvgasguy Posts: 1,405
    but is the credit still good on vehicles purchased in say, 2007, if the manufacturer doesn't hit 60,000 in 2006?

    The credit is appliued to the year of purchase. For the TCH it's $2600 against your 2006 taxes (which you file the papers in 2007). It goes down to $1300 at the end of the month.

    For car makers who have not made 60,000 cars the credit stays the same until they meet the 60,000 mark. I don't know what the various credits are but say a Ford Escape Hybrid is $1200 now, then it will be $1200 this year or next or untill the law is no longer in effect or until they hit the 60,000 mark (a while from now) which ever is sooner. They it will drop similar to the TCH
  • terry92270terry92270 Posts: 1,247
    From what I understand, Toyota will have hit the threshold by the end of this month...so the tax credit for them will end.
  • wvgasguywvgasguy Posts: 1,405
    From what I understand, Toyota will have hit the threshold by the end of this month...so the tax credit for them will end.

    It gets cut to $1300.
  • terry92270terry92270 Posts: 1,247
    Cool!

    Thanks for the right answer, GasGuy! :)
  • kdhspyderkdhspyder Posts: 7,160
    Actually Toyota hit the 60,000 mark at the end of May.

    The way the law is written everyone who purchased a vehicle in that quarter and the following quarter are entitled to the full credit ( subject to their personal tax situation ). This is why Sept 30th is the last day for the full credit. On deliveries beginning 10-1 the credit is $1300 through March 31, 2007. Then $650 through 9-30-07

    Vehicles put in service this year can apply the credit to their tax liability for TY 2006. Those taking delivery on 1-1-07 will have to wait a year.
  • terry92270terry92270 Posts: 1,247
    Thank you for the details! I am bookmarking it. :)
  • kdhspyderkdhspyder Posts: 7,160
    ... or cannot find a loaded TCH before the full tax credit expires in 3 days... contact me by email. ( in my profile ).
  • My wife ordered a blue TCH and put down a small deposit. We were told it might take a couple of months for delivery, because we wanted a specific color and the nav package and the leather package. We chose the port of entry leather because waiting for a factory order would add another month. It was actually delivered to us in just under three weeks. It took one more day to get the XM radio installed and she drove it home yesterday afternoon. We probably had good luck to get it so fast, but all in all we are very happy with the whole process. Maybe production is catching up with demand.
  • shasta67shasta67 Posts: 109
    I don't know how it is everywhere else but I am seeing many of TCH's on the lots in Southern California. I went to Puente Hills Toyota today and I would guess they had about half a dozen of them. Same as in Victorville the day before. I drove one today and have to say I was impressed but still think I will hold out for an V6 SE.

    We never really talked price but I got the idea they would deal on the Hybrid now. I am sure with the tax credit being gone and more on the market, they will be much easier to come by. I never thought the tax credit did the average person much good because the dealer knew you were going to get it and priced the car accordingly.
  • terry92270terry92270 Posts: 1,247
    Check out Toyota's website for their suggested MSRP now on those Hybrids.... ;)
  • lzclzc Posts: 483
    First, the tax credit isn't gone, only reduced by 50% to $1300. That, and the fact that US assembled TCHs are beginning to hit dealer showrooms, probably accounts for increased availability.

    Price is a function of supply and demand. If demand exceeds supply, the price will be firm, tax credit or no tax credit. To the extent that the tax credit fueled demand it may well have help keep the price near MSRP.
  • shasta67shasta67 Posts: 109
    I was mistaken about the tax credit and it is true that the price it a product of supply and demand but I still do not feel the tax credit does the average Joe much good. Toyota, like most smart companies, made sure the supply would be less than demand, especially in the beginning. I really don't see anything wrong with that strategy. It keeps the buzz going and the dealers happy. Harley did it for years.

    I just feel a lot of people jumped on buying hybrids because of the tax credit and could have ended up paying the same or less money, in real terms, if they would have waited six months.

    I am in the alternative energy field myself and really do like the hybrid. My wife does not like it because I think she is a little scared of it and the smaller truck space. I will probabaly buy the V6 but would consider a hybrid if the price is right. I really do think it is going to be the way of the future
  • lzclzc Posts: 483
    There's little doubt that the tax credit motivated some buyers who otherwise wouldn't have paid the premium for the hybrid. But then there are others, like myself, who would have bought anyway, just to help reduce our dependence on foreign oil.

    As to their limited supply, I don't think one can expect even mighty Toyota to commit the resources needed to mass produce a car as radical as the hybrid from the get-go. They deserve credit, imo, for ramping up production as fast as they have. With hybrid Camrys now assembled in two factories supply will soon increase, and with it will come a decline in prices paid. Early adopters routinely pay higher prices for being first on the block with this or that.
  • wvgasguywvgasguy Posts: 1,405
    but I still do not feel the tax credit does the average Joe much good.

    I would think that the "average joe" could use $2600 in his pocket to help pay for food and schooling. For the "above average" joe, I traded down and since May 5th when I took delivery of my TCH I have saved an additional $2850 in reduced car payments and savings on gas. I am fortunate that my state also has a tax credit and I'll get an additional $3750 over three years, but even without that the savings occurs every day I drive the car. As for the "unaverage" joe, if they don't have a job where they actually pay $2600 in taxes OR they pay the AMT, then the tax credits certainly don't motivate them.

    Knowing what I know now I would buy this vehicle without any tax credits.
  • kdhspyderkdhspyder Posts: 7,160
    An important nuance for us as buyers vs Toyota as a manufacturer is that the retail price has no bearing on what Toyota sees as it's revenue. Until some time in the future that rebates are offered, for Toyota the manufacturer all vehicles sales are at 'full sticker' ( to it's dealer network ). What the retail outlets do to move the inventory has no bearing on Toyota ( or any manufacturer for that matter ).

    The result is that we should now begin to see a good supply of all TCH models, even the loaded ones so much in demand, since the more it ships the more 'full sticker' sales Toyota can make. Bring KY on line jumps the capacity by about 4000 units a month up to about 8000 units.
  • lzclzc Posts: 483
    Yes, you make a good point. However, the price to dealers will drop if demand declines beyond a certain point. Manufacturers often need to drop prices to help reduce inventory. Otherwise, dealers stop buying.

    In our case, we decided to buy the TCH because it wasn't "fully loaded." With moonroof the headroom in the Camry is tight. So far, ours is the only one we've seen without a moonroof.
This discussion has been closed.