Author: John Palmer

What You Need To Know About Electric Vehicle Tax Credits

Electric cars. They’ve been an artifact of “future life” since the 1950s, and there have been conspiracy theories for decades claiming that effective, powerful electric cars have been suppressed by the oil companies. Is that true? Who knows. What matters is that they’re here now, and they’re catching on. This is a good thing. Fossil fuels are expensive, dirty to extract, and even dirtier to burn.

In a surprising change of tune, there have been incentives lately to provide tax credits for electric cars, but like any tax credit or regulation, it’s confusing and overwrought. Are you unsure if your plug-in electric vehicle qualifies for these tax credits? Are you uncertain how much of a credit this earns you?

You are far from the only one. Let’s take a look at a simple guide to electric car tax credit in simple, certain terms and demystify this nonsense, shall we?

So How Much Credit Do I Get?

That’s a big question, isn’t it? They’re always so vague with “up to a certain amount” as the listing for tax credits, just as they do for savings and deals. The government is a business, and they know all the ins and outs of vague but effective marketing and wording to incentivize we unwilling customers.

But, truth be told, “up to” does have a significance as an upper bound limit, but also as criteria to qualify. Generally, the flat rate is up to $7,500 but, that’s only the case if your taxes add up to this amount or more. If there isn’t sufficient tax cost to deduct, you can bet the government’s not going to give away funds.

It gets more complicated depending on how you obtained your vehicle. If you bought it flat out, then this arrangement is between you and the federal government, which minimizes the complication and variables present.
However, if you’re leasing your vehicle, the lease provider/dealership is the middle man, and you can expect your tax credit to be reduced. They too have their fingers in the pie. Finally, your battery capacity also affects the quality of this credit, with a higher battery capacity (requiring fewer recharges) netting you a significantly higher percentage in tax credit.

The Fine Print

So, surprise, surprise, there are various bits of fine print and legal provisos that have an effect on this as well. It’s not entirely devastating, but being aware of these going in will help prevent surprised.

Battery packs must rate at least 4 kWh to qualify.
Vehicles being purchased for resale do not qualify.
The vehicle must be used in the USA.
Only qualified manufacturers qualify.
If you’re leasing, the lender/dealer can intervene and cap your credit.
The IRS has a strict set of criteria and qualified manufacturers that may or may not include your model or some component in it.
The IRS is an evil organization, and they can reject your claim on a whim.

Do These Run Out?

Oh yes, they certainly do. This tax credit is an incentive to put more electric vehicles on the road, in an effort to gradually phase out internal combustion over the course of this century. As more of these vehicles are purchased, these credits will diminish in scope, and eventually become unavailable entirely.

Can These Be Passed On?

This has a simple answer, unlike most of this. No, they cannot be passed on. If you gift an EV, or resell it, the tax credit is null and void, and the owner will almost certainly be unable to place a new claim.

What of Hybrids and Clean-Diesel?

These once had tax credits of their own, but due to their massive presence on the roads now, and their falling prey to obsolescence to true EVs, these tax credits have long expired.

State or Federal?

This depends on what state you live in, whether or not there is an additional state tax credit alongside the federal case. In the states of California, Oregon, and Washington, there are state-level tax credits provided for select vehicles. However, in some other states, this is not the case. You can make your own conclusions as to the relation of majority political alignment per state, with which ones most incentivize these clean technologies.
Some programs out there do provide interactive maps to show where these overlaps exist.

Fuel Cell Cars?

Sorry, no. Unless you bought your vehicle before January 1, 2017, you are not eligible for tax credits on hydrogen cell vehicles.

To learn more about these tax credits, and see some specific examples of credit returns for specific prices and vehicles, fill out our contact form below.

Key Technology Has Increased The Cost Of Losing Your Keys

Don’t lie. You’ve lost car keys before. We all have, at some point in our lives as drivers, lost our keys. It’s rarely due to carelessness. Drop them in the snow or down a grate? Fumble for your phone in a hurry to have them fall out of your pocket? Kids run off with them not realizing the ramifications? Yeah, this kind of thing just happens sometimes.

In the past, it was an expense, sure, but as technologies have evolved to make your car keys more convenient and secure, the cost of key replacements has skyrocketed significantly. It’s an inevitability. A saw-cut piece of metal’s only going to cost you parts and labor to have a new one cut. But newer technologies like keyless remote systems, transponders, smart keys and the like? That’s some hefty technology, and very involved to replace.

Let’s do a run down on what your new set of keys is going to run you, depending on what you’ve got.

Basics

So, you think you’ve got a basic set of keys? You can tell if the shank (the long metal part that goes into locks) will have simple grooves that are easy for a skilled locksmith to copy. These are affordable running you around $3.00 for a locksmith to make you a set.

If you have a fob (or remote/transmitter), that’s going to cost you a good bit more. These can run between $50-$90 depending on model, complexity and signal security measures. There do exist other options though, for aftermarket fob offerings that can significantly reduce the cost.

You can find out the specifications of your fob by going online and looking up your make and model of vehicle (provided you didn’t install a secondary system after market to begin with).

Transponder Keys

Transponder keys came along in the mid-90s, but became a standard after the turn of the century. These contain a simple chip that, once plugged, unlocks the ignition. Without the transponder, the ignition simply won’t work. This is an added measure to prevent fraudulent copies of keys from letting people make off with the vehicle.

These can be very pricey or very cheap, depending. Going to a dealership can run you prices like $160, while locksmiths capable of creating these transponder keys, will charge you something closer to $20-$30.

A search online can teach you tricks with an existing key, to program a copied key from a blacksmith, with a little online research.

Laser-Cut Keys

These are the modern take on a classic key, with a winding, less toothy shank. These are going to be more expensive, due to the equipment needed to cut them being very pricy. Not all locksmiths have this equipment, and it’s going to run you between $150-$250 to have one of these replaced.

Switchblade Keys

Switchblade keys fold into the fob, making them a single unit. These are increasingly common, and they can cost you a little as $80, but more often between $200-$300 due to their form factor and the second generation remote technology in them.

Smart Keys

Smart keys are a whole different ballgame, more like a USB encryption key/thumb drive, that allows push-button ignition. This was novel a few years ago, and is most common in things like Mercedes-Benz and other higher-end cars.

They’re becoming more common though, and are likely going to be the standard within 10 years or so. The problem with these is, they’re painfully expensive, costing up to $400 to replace, and it can be hard to find a locksmith that can, opting for a dealership’s extortion to solve the problem. Oh my.

Is It Worth It?

Is all of this expensive, hard-to-replace technology worth it? Well, ultimately, yes. Since the invention of these newer technologies, the rate of car thefts and break ins have significantly decreased by major statistics. Security is worth it, just be more careful with your keys, knowing how costly they can be to replace!

To learn more about car key types, and the advantages of these technologies, fill out our contact form below.

What is the Difference Between Cancellation and Non-Renewal of An Auto Policy?

Auto insurance can be a confusing, complicated enough thing on a good day. The many policies (and their hidden exceptions from coverage), the baffling billing plans, it can all be quite a headache, sure enough. But, once you’ve chosen your provider, your policy, and gotten things into full swing, one would think that the confusion is over, and barring unfortunate incidents where claims have to be made, it should all be smooth sailing henceforth, shouldn’t it?

In a perfect world, this would certainly be the case. However, few long-time drivers are unfamiliar with confusing notices that say things like “cancellation notice” versus “non-renewal notice”. Clearly, in either case, you’re staring down the barrel of an absence of legally-required insurance, and action needs to be taken to remedy this for your sake.

But, what’s the difference between these two? It sounds like they’d mean the same thing, but in all reality, they’re distinctly different and have significantly different connotations. One is quite harsh, while the other is just an artifact how this kind of industry has to work and isn’t personal.

Which is which, and what’re the primary causes of either? What’re the long-term ramifications of them? Today, we’re going to take a look at both, what they mean, what brings each one about, and what effects they can have on the long term.

Understanding the causes and ramifications of these is very important, as one of them can have quite severe consequences for the future.

Cancellations

Let’s get the nastier one out of the way first. Cancellations are quite harsh and can have severe consequences. Cancellations are usually the result of non-payment of plans and premiums, but can also be brought about by ongoing poor driving records (accidents, tickets, more severe crimes such as DUI arrests), which make you too high of a risk for their set tolerances.

When a cancellation occurs, you have a somewhat short window to find a replacement policy with another provider, as it generally takes effect within about fifteen business days, sometimes less in certain states. The consequences long term apply largely to your credit score.

It can make it harder to find affordable policies moving forward, as these insurance providers do exchange customer histories when it’s a matter of public record (non-payments and traffic law violations falling well within this domain).

Non-Renewal

Non-renewals are far less severe and are seldom something personal. These are simply an executive decision by way of your provider to no longer accept your business. These tend to happen when policies are restructured, or you cease to qualify for policies or plans within their purview. This often happens based on your income bracket changing, your age range changing, your vehicle type changing, and other such events.

These usually provide you significant time to find a replacement provider/policy, and also have no effect on your credit score or customer history. They’re an inconvenience, and an unfortunate aspect of these sorts of service industries, but not something with lasting implications.

To learn more about cancellations, non-renewals, and other similar concepts, fill out our contact form below, or call us today!

How To Find The Right Auto Insurance

Car insurance is a big decision. Not only is insurance very strongly enforced as a legal requirement to be on the road, but it’s also an invaluable peace of mind. A lot can happen in a second’s time when you’re cruising down the road at speeds upward of seventy miles per hour on America’s freeways. You’ll want to know that, should the worst happen, you have a solid, reputable provider and policy, and the same goes for those with whom you share the roadways!

Finding the right provider can be something of an onerous task, can’t it? Sure, you see countless advertisements online and on television from the bigger names, but what do you really learn from these? Not much, once you actually call them, and take the time to really converse with an agent about your own personal case and needs.

That in mind, today, we’re going to go over some simple rules for finding the best provider and plan for your needs. If you follow these common sense, logical steps, you should find yourself able to make an informed decision with little to no trouble along the way. There is no one right choice for everyone, so don’t be surprised if you still have to put some time into shopping around!

Knowing What You Want and Need

Of course, the biggest thing to know is what you want out of your provider. What kind of vehicle do you drive or plan to drive? How much traveling do you plan to do, and how much coverage do you feel like you honestly need? What’s your budget, and what’s your history like?

Knowing these things out the gate can save you a lot of time, and allow you to narrow down your candidates before you really even begin talking to potential providers.

Study Your Companies

Once you know what you’re after, and have a list of potential candidates, you’ll want to do some in-depth analysis of these companies. This has never been easier, thanks to the internet, user reviews and the transparency it all has by its very nature.

Check your state department of insurance website, make sure the company is licensed in your area. Look into their financial state through places like A.M. Best and J.D. Power. Investigate their BBB (better business bureau) ranking, and of course, read user reviews on places like Google, Yelp and other public places where customers can be heard without censorship.

Companies can’t hide their dirty laundry in the 21st century, you should always use this to your advantage.

Compare and Contrast

Once you start getting quotes from these companies, weigh them against data provided by people you trust – family, friends, colleagues. This way, you can get a good metric on whether or not you’re being high-balled by the sales agents of these companies, and may even learn about plans and providers you hadn’t had on your list.

Seek out discounts and bundles. Check out what these companies have to say on their social media outlets, and how the public responds to them.

Periodical Evaluation

Once you’ve got your coverage, periodically reevaluate it by the criteria above, because you never know when better choices may become available, and some providers have a habit of gradually raising premiums or backing out of certain bundled deals after a period of time. Never stop being on the lookout for better deals, plans, and contracts!

To learn more ways to compare and save on auto insurance, fill out our contact form below, or call us today! We’re here to help.

Does Car Insurance Cover Pothole Damage?

Potholes are one of those problems that plague so many of America’s roads these days. For all a city’s efforts, there’s always some leg of everyone’s commute where these gaping voids lay in wait to give us a bad day. Most of the time, they just provide something of a sobering bump, perhaps a little splash of our coffee in our laps on our morning trip to work.

Sometimes, though, they can do some real damage to your vehicle. They can knock your steering out of alignment, they can mess up your rims, flatten your tires, even damage your frame or axles if you hit a big enough one with enough speed!

Well, accidental damage like this is what your car insurance is for, right? Well, back up for a second, because you can’t be 100% certain that your coverage includes pothole damage. This one’s a bit tricky, because in many cases, coverage isn’t labeled as pothole damage directly, which is a bit of a veil with which a lot of companies have been known to hide the fact they do not, in fact, provide coverage for this kind of damage.

There have been a lot of crackdowns on this in recent years, though, so most decent plans do have some level of pothole damage coverage. The real trick is how it’s itemized in a policy, and how it’s categorized across the board.

Collision coverage in many places (Chicago and New York being prime examples) often cover sudden, accidental damage from potholes, just as it covers damage from curbs, parking partitions, shopping carts in parking lots, and other such unpredictable surprises that await the average driver. However, potholes are a problem in more than one way.

Potholes can indeed very suddenly do immediate damage to your vehicle, but they can also work overtime to do collective, gradual damage from prolonged driving over them. When this happens, many policies out there do not provide coverage that really fits the situation.

This leads to why it’s very important to consider the types of roads you anticipate having to navigate when choosing your provider and coverage policies. So, does this kind of coverage exist, and if so, what form would it take?

The truth is, there is no direct coverage for this type of damage, unfortunately. However, many policies have significant deductibles that can be placed towards this kind of gradual damage, more so with sudden damage from unexpected run-ins.

At the end of the day, there’s nothing for it but to do your best to avoid particularly bad roads, and to drive smartly when you find yourself unable to avoid them properly. And, when choosing your plan, you’ll want to determine your deductible wisely, to account for those sudden, surprise sources of damage that can happen to the best of us, no matter how careful we are.

So, does insurance cover pothole damage? Yes and no, as irritating of an answer as that may be.

To get more insight into this and other precarious issues with insurance, fill out our contact form below or call us today. We’re happy to clear anything up we possibly can!

What Does It Mean To Blow A Head Gasket?

Don’t blow a gasket! This is a term everyone is familiar with in the English-speaking world, extending its meaning and ramifications well beyond auto culture by a large factor. But, what exactly does it mean to blow a gasket?

What exactly is a gasket, and what does it do?

The precise purpose and nature of these components, for all their importance and criticality, eludes most people who lack a deeper knowledge of automotive sciences. This is understandable, but this information is probably something everyone who drives a vehicle should actually know.

That in mind, we’re going to take a look at what gaskets are, what they do, and why blowing a head gasket is such a catastrophic issue calling for an immediate resolution. We’ll also look at the obvious symptoms of failed gaskets.

What Are Head Gaskets

Head Gaskets themselves are a ring of belted steel, copper or other durable but flexible metal, coated in rubber or a silica compound of some sort. They’re intended to provide a persistent seal as well provide some padding for higher-impact parts of your vehicle. They can break down due to a number of reasons.

The main thing that kills gaskets is simple, wear and tear. While they have some bounce-back from impact, over time, the silica/rubber coating loses this elasticity and can even wear off. Another common gasket killer is build-up of “crud”.

What Do Head Gaskets Do?

Head gaskets provide critical seals to contain fluids such as oil, coolant, and fuel, as well as to contain the combustion of fuel. They also provide extra padding for cylinders in some engines.

Symptoms of Blown Head Gaskets

If one or more of your head gaskets fails, there are some very detectable symptoms, none of which are good.

White Exhaust – Exhaust is usually mostly transparent. If there is very visible white smoke exiting the exhaust pipe, it means water and coolant are getting into the ignition chambers. Steam and burning glycol have a very thick, white appearance.
Overheating – If your engine is consistently overheating, this means you’re losing coolant, which is another substance head gaskets help to contain.
Visible Coolant Leaks – Coolant can escape beneath the exhaust manifold, and is very visible if it does so.
Rapidly Diminishing Coolant – Coolant may not visibly leak, due to being evaporated or possibly pooling somewhere. If the coolant is diminishing at an alarming rate, its gasket may be blown.
Poor Running Engine – If your engine’s performance has suffered a severe drop, this is very likely the primary cause as fuel efficiency has reduced due to the primary cylinder head gaskets being blown.

Prevention not Response

The best way to ensure that these and other gasket-related symptoms do not occur is to avoid overheating your engine. Ensure it’s vented properly and not strained beyond its proper rating by overpowered fuel etc. Heat is the biggest gasket killer, as pointed out previously.

To learn more about the various gaskets and their important functions, fill out the contact form below to stay in the know!