GM Admits that Dealerships are Taking Chevy Volt Tax Credits

Eighty Deuce · Jun 1, 2011

If you had issues with the sale of the Government Motors (GM) Volt going out with a $7500 tax credit, unfortunately it is worse than you think:

...... He then goes on to confirm that the dealerships purchasing Chevy Volts and reselling them as used vehicles are entitled to the $7,500 tax credit

.....GM does not deny that Chevy dealerships are selling Chevy Volts to other dealerships, including a KIA dealership, for resale. At the same time, Peterson also touts the high demand for Volts claiming, "we don't sell Volts at the moment - it's almost like we deliver them." By this statement, you wouldn't know that sales for the Volt averaged a dismally low 425 per month for the first four months of the year.

........Peterson also claims that no issues exist with dealerships taking the tax subsidies as long as they are honest with customers. Unfortunately, there is no guarantee of that being the case. Many customers who buy Chevy Volts may feel that they are entitled to the tax credit, especially if they are paying near MSRP and the vehicles have such low mileage. The IRS form in its current form does not safeguard against double claiming of the tax credit.

more: GM Admits that Dealerships are Taking Chevy Volt Tax Credits | National Legal and Policy Center

Basically, a GM dealership can sell a new Volt to such as a KIA dealership. The GM dealership gets the $7500 tax credit. A real customer then buys the almost new Volt from the KIA dealership, and gets a $7500 tax credit.

GM stock is still down from its November 2010 IPO, btw ($33 then vs. $32 now). We, as in all of us via the Obama Administration and the US Treasury, own a boatload of shares that we essentially have to sell at $54 to break even. Current estimated loss to us is somethwere around $25 billion.

Without the double-dip tax credits, btw.

GM Admits that Dealerships are Taking Chevy Volt Tax Credits

Eighty Deuce