What you Need to Know About the Outlander PHEV and the Federal tax Credit
The end of the year is upon us, and outlets like U.S. News indicate that the month of December is arguably the best time to finally take the plunge on that new car you’ve been eyeing. Statistical data from TrueCar goes even further and suggests that December is also an excellent time to buy a small SUV as car dealers will be eager to move the last of the current year’s models off their lots to make room for the next year’s lineup. If an SUV is what you’ve had your eye on then, we’ve got an even better way to save you money – buy green! 2018 marks the first year that the eco-friendly Mitsubishi Outlander PHEV is available to buyers in the U.S., meaning it’s also the first year that it is eligible for a federal tax credit.
Federal Tax Benefits
All-electric and plug-in hybrid vehicles purchased in or after 2010 may be eligible for a federal income tax credit up to $7,500. The federal incentive is not a flat credit as it depends mainly on the buyer’s tax bill at the end of the year. For example, if a buyer’s purchase provides for a tax credit up to $7,500 and they owe $4,000 of income tax for a specific year, the $4,000 debt will be covered by the tax credit. However, even though the credit was for $7,500 it does not mean the Treasury will cut a check to the buyer for the difference. Also, the credit amount varies depending on the capacity of the battery used to power the vehicle. Other state and local incentives may also apply when completing a purchase of a green vehicle. Potential buyers of the Mitsubishi Outlander PHEV should be aware that this plug-in hybrid electric vehicle qualifies for a $5,836 federal tax benefit.
Other Financial Benefits
The Outlander PHEV is the gift that keeps on giving. Besides the federal tax benefit, the Outlander PHEV is such a fuel-efficient vehicle that it also offers plenty of savings when it comes to fuel costs over the years. According to statistics from fueleconomy.gov, buyers can expect average yearly fuel costs to be in the $1,250 range for the Outlander PHEV. The Department of Energy reports that other small SUVs have fuel costs that start at the $1,400 range instead. Additionally, over the course of five years owners can also expect to save up to $1,250 in fuel costs when compared to the average new vehicle.
Buyers can rest easy knowing that an industry-leading warranty covers the Outlander PHEV. Mitsubishi Motors offers a ten year or 100,000-mile limited powertrain warranty, a five-year or 60,000-mile limited basic warranty, and a five-year roadside assistance plan for all of their vehicles. Since the Outlander PHEV is one-of-a-kind, Mitsubishi also offers a 10-year or 100,000 -mile limited warranty on the battery that works in tandem with the internal combustion engine.
If you’re ready to learn how much money you can save by getting behind the wheel of a Mitsubishi Outlander PHEV come by University Mitsubishi. Check out our latest Outlander PHEV inventory and schedule a test drive today!