The following are a few key points regarding the Tax credit.
· Any qualifying vehicle (MY09/MY10 BlueTEC GL, ML & R- Class) must be purchased –leased vehicles will not qualify for the credit.
· Credit is not realized at retail purchase, but must be applied for individually by the customer, and claimed on their Income Tax Return (1040). Each respective customer should contact their individual tax advisor for more details.
· *Tax credit amounts : MY09 ML320 BT: $900
MY09 GL320 BT: $1,800
MY09 R320 BT: $1,550
*Please note: amount is based on a complicated formula, and since the ML is the lightest of the three vehicles, it is held to a higher standard for fuel economy improvement, but has the smallest improvement of the three vehicles. Therefore the maximum credit is relatively lower vs. the GL & R- Classes
· The same parameters will apply for our forthcoming ML & S hybrids, credit amount TBD.
· Toyota /Lexus already reached the maximum number of hybrids sold inOctober 2007, so anyone purchasing a Toyota or Lexus hybrid is no longer eligible for the above mentioned tax credit.
The following example illustrates the more favorable “economics” of the ML320 BlueTEC, with the changes to the federal tax credit.
“Payback” For Customer
Factoring in the $900 tax credit for the ML320 BlueTEC, utilizing U.S. national avg price of premium gasoline ($2.19) and diesel fuel ($2.09) from 3/23/09 www.eia.doe.gov, and assuming 15,000 miles of driving per year (45% HW, 55% city):
· The ML320 BlueTEC would allow a customer to recoup the price difference in exactly 2 years vs. the ML350 4MATIC.
· The BMW X5 diesel holds a current payback of 5 yrs, despite a larger tax credit, due to an overall higher MSRP premium vs. the gasoline counterpart.
· Comparably, the MY08 Lexus RX400h would take 7 years for the customer to recoup the price premium of $2,980 compared to its gasoline counterpart.
Adam