Shopping for a new car can be a stressful and daunting experience, and one of the big concerns is price. But, if you’re looking to buy a new Chrysler, there are a couple of ways that you can save a significant amount of money. Here’s a look at how you can get up to $7,500 off your next Chrysler.
What the federal EV tax credit is
The U.S. government has been promoting the adoption of EVs for a while now. One of the ways that the government’s done this was by offering the federal EV tax credit. With this tax credit, the federal government helps customers save money on cars. However, there are some rules.
Currently, only automakers who have sold less than 200,000 units of eligible cars will qualify for this tax credit. It’s why Tesla customers can no longer take advantage of it. But, this tax credit isn’t only for EVs. The size of this credit is based on a car’s battery size, and it also applies to PHEVs.
However, the battery size requirements are very generous. Electrek wrote, while some eligible cars won’t be eligible for the full $7,500, two popular Chryslers would.
The two Chryslers eligible to get up to $7,500 off
Stellantis, which now owns Chrysler and Jeep, has ambitious plans to electrify its lineup soon. However, two cars already qualify for the maximum $7,500 tax credit. The big one is the Chrysler Pacifica PHEV. All model years of the Pacifica PHEV are eligible for the full $7,500 credit, and it will cut the Pacifica PHEV’s roughly $40,000 price tag significantly.
The Pacifica PHEV comes with a lot of features that’ll make it worthwhile,. It has a 10.1-inch touch screen display as standard. The Pacifica PHEV also has more than enough room for most families since it’s a minivan. It can comfortably seat up to eight passengers, and when its seats are folded down, it gets up to 140 cubic feet of cargo space. And, on battery-only mode, the Pacifica PHEV can go 32 miles on batteries alone.
The other Chrysler that’s eligible for this $7,500 tax credit is the 2021 Jeep Wrangler 4xe. It starts at about $51,000, and it’s capable of doing anything a Jeep can do, and then some. For example, unlike other Wranglers, the 4xe gets about 50 mpg, and it can also go about 25 miles on batteries alone. This allows Jeep fans to be eco-friendly in the city but do Jeep things elsewhere.
How to claim this credit
Since this is a tax credit, it can be claimed when you’re doing your taxes. With that being said, while $7,500 is the max amount you can get per car, not everybody will actually get the whole amount. Electrek said, since it’s a tax credit, how much you’d get will depend on how much income taxes you owe the government.
So, if you owe $5,000 in income taxes, you would only get $5,000 from this tax credit. On the other hand, if you owe $10,000 in income taxes, buying one of those eligible cars will save the full $7,500. That said, these aren’t the only incentives available. Electrek wrote, residents of certain states, such as California or New York, will have access to additional ways to save money on their clean car.