Quote:
Originally Posted by GGG
Because the car already exists in the market.
I don’t care if person A or person B owns the new car.
This just raises the price of a used car by the amount of the subsidy.
The best a used car subsidy can do is increase the sale price of a used car which decreases the delta between a used car and a new car which encourages a current owner to sel their used car and buy a new car which increases demand for a new car which encourages a manufacturer to build or expand production.
The goal is to increase the manufacturing of electric cars so just subsidize the manufacturing of electric cars. Now you want to encourage competition so instead of directly subsidizing manufacturing you subsidize the first sale. Once
That car is in the market you have accomplished your goal. This way you can control and direct things like maximum prices. The idea of a used car subsidy is that lower income benefit but unless there is a max price the subsidy applies to then all it does is raise prices
|
Interesting take on it. I would think the market would dictate the price by what people are willing to pay, but I can see what you're saying. As an EV owner I welcome this benefit of the rebate on used EVs. Makes the market for used EVs that much larger!