Our last ATC blog post covered electric vehicle registration fees added by the states to make up for lost gas tax revenues, since EVs don’t pay them. In this post, we will inform you about tax incentives for EV purchases.

EV adoption is increasing, and the federal government recently enacted a ten-year extension of federal tax credits under the Inflation Reduction Act for people buying an EV. There are also numerous state EV tax credits available as well as discounts or money back on EV charger installations. 

Obviously, federal tax credits apply to the entire U.S. whereas state credits and rebates do not. As defined by the Inflation Reduction Act, consumers may qualify for up to $7,500 in federal tax credit for an electric vehicle, but the credit will vary based on the capacity of the battery used to power the vehicle.

To see how much of a credit is available on the many different EV and PHEV models available, check out this helpful site created by the U.S. Department of Energy.

Now, turning to the states, it would take a long time for us to cover all the rebates, tax incentives, and rebates state by state, but this site has already done it. Check it out to learn what is available in your state (or in states to which you send a lot of happy buyers).

By the way, the Inflation Reduction Act has added some new incentives for EVs including:

  • A new tax credit up to $4,000 on used EVs put into service after December 31, 2023
  • Removes the existing 200,000 vehicle cap on credits that made EVs from Tesla, GM, and Toyota ineligible
  • Does away with tax credits for expensive EVs 
  • Eliminates tax credits for vehicles not assembled in North America
  • Restricts the full tax credit on new EVs to vehicles with battery minerals sourced from countries that the U.S. has a free trade agreement with

In other EV news, California, the largest EV market in the U.S., enacted legislation that bans sales of new gas-powered passenger vehicles by 2035, basically requiring new vehicles to be electric.

Q2 2022 electric vehicle registrations were up 66% over Q2 2021 and made up 5.6% of all new car sales so EVs are growing and growing fast. As noted in our last blog post, as EV sales increase, so will the number of ways states charge their owners to recoup lost gas tax revenue, and that will make your job titling out of state EV sales harder, but ATC will always know what additional EV fees are required for your out of state transactions. 

ATC provides the industry’s most accurate tax, title, and registration fee information to make the car buying experience easier for your shoppers and more profitable for dealers, lenders, and auto technology companies. 

The truth is in the data: ATC is the fastest, most accurate TT&L data provider and when you GO ATC, you get the Greatest Of All Titling Companies!

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To learn more about how we can help with your EV sales, contact us.

Both the federal government and U.S. states collect tax revenue on gasoline sales to pay for road maintenance and improvements, but as more and more electric vehicles are sold, collecting the gas tax will get harder and harder. As a result, states have begun charging an extra fee to register an EV to compensate for lost gas taxes. 

In this blog post, we cover electric vehicle registration fees from coast to coast. 

The current federal gas tax is $0.18 per gallon for gasoline and $0.24 per gallon for diesel fuel. The gas tax varies widely for all 50 states; from a low of $0.09 to a high of $0.65, and we’d be willing to bet you can guess which state is the lowest (Alaska) and which is the highest (California). Nice job!

By the way, the first state to enact a gas tax was Oregon, which began collecting 1 cent per gallon, all the way back in 1919! 

As of August 2022, there were 30 states that impose a special registration fee for electric vehicles as well as plug-in hybrids. Most states put EV fees into the same fund as the gas tax to maintain their roads and infrastructure and some states allocate part of EV registration revenue to support EV infrastructure. 

Here are some highlights of EV registration fees:

  • Utah started charging $60 extra for electric vehicles in 2019, but that has doubled to $120
  • Georgia charges $200 extra for EVs; Alabama too
  • Illinois residents pay an additional $100
  • Michigan adds $135 extra per year for EVs less than 8,000 pounds and $235 for those heavier than 8,000 pounds
  • Oregon charges $110 more per year, but that can go as high as $316, depending on county of residence
  • Washington has an additional $225 per year charge for EVs
  • In Indiana and Mississippi, it’s an additional $150
  • Colorado adds an extra fee of $50 for EVs and uses 40% for the EV Grant Fund while the rest goes to the Highway Users Fund
  • Minnesota adds $75 a year, as does Missouri and Nebraska
  • Virginia adds EV fees of $64 per year
  • California, the state with the most EVs, requires an additional $100 per year

Other interesting EV fee information:

  • In Idaho, pending legislation would increase EV registration fees from $140 to $300 annually but EV users could elect to pay an alternative 2.5 cents per mile fee in lieu of the $300 fee.
  • As mentioned, a few states allocate some EV registration fee revenue to support EV infrastructure, including Alabama ($50 of its $200 fee), Washington (an additional $75 fee), and Colorado ($20).
  • Five states (California, Indiana, Michigan, Mississippi, and Utah) have tied additional registration fees to the consumer price index so that it increases over time.
  • At least seven states (Maine, Nevada, New Mexico, Oregon, Utah, Virginia, and Washington) have enacted Road User Charge laws which link transportation taxes to actual miles driven. 

As EV sales increase, so will the number of ways states charge vehicle owners to recoup lost gas tax revenue, but ATC will always know what additional EV fees are required for your out of state transactions. 

ATC provides the industry’s most accurate tax, title, and registration fee information to make the car buying experience easier for your shoppers and more profitable for dealers, lenders, and auto technology companies. 

The truth is in the data: ATC is the fastest, most accurate TT&L data provider and when you GO ATC, you get the Greatest Of All Titling Companies!

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To learn more, contact us.

The Federal Trade Commission (FTC) has proposed a new rule related to the sale, financing, and leasing of motor vehicles aimed at dealers. The proposed rule would bar dealers from “making certain misrepresentations in the course of selling, leasing, or arranging financing for motor vehicles, require accurate pricing disclosures in dealers’ advertising and sales discussions, require dealers to obtain consumers’ express, informed consent for charges, prohibit the sale of any add-on product or service that confers no benefit to the consumer, and require dealers to keep records of advertisements and customer transactions.”

The rule has been proposed because the FTC is concerned consumers never learn the true cost of their vehicle because of the growing number of add-on products and services dealers push during the sales process. The FTC is also concerned that in some cases, consumers don’t realize that the add-ons are optional, or even know they are purchasing the add-ons.

Why was this rule proposed?

According to the FTC, owning a vehicle is essential for most Americans, with 84% of the population using a car or truck to get to work (as of 2020). Plus, over 95% of American households own at least one vehicle. It is an indispensable part of daily life, being used for work and school, getting groceries, childcare, medical visits, and just about every other thing Americans do outside of the home.

A car or truck is the second-most expensive purchase many consumers make, behind buying a house, and for many, it IS their most expensive purchase. The average new vehicle costs more than $42,000 and the average used vehicle costs more than $26,000. (NADA, 2021)

According to the proposed rule, the definition of “Motor Vehicle” means any self-propelled vehicle designed for transporting people or property on a street, highway, or other road. That includes cars, trucks, motorcycles, motor homes, RVs, and campers – essentially any vehicle sold through dealerships.

What does it all mean?

If the proposed rule takes effect, and many experts believe it will, it will:

  • Require dealers to obtain consumer consent, meaning clear, written, and informed consent for any and all charges, fees, and conditions of sale, including any optional add-on products or services included in the purchase.
  • Prohibit bait-and-switch advertising related to vehicle cost, financing terms, cost of add-ons, availability of discounts or rebates, and vehicle availability.
  • Prohibit junk fees, add-on products and services that do not provide a benefit to the consumer, such as finance and insurance coverage and nitrogen-filled tires.
  • Prohibit surprise junk fees, add-on products or services added to the purchase without clear, written consent.
  • Require the full up-front disclosure of costs and conditions, including the true price of the vehicle, financing terms, costs of any add-ons, total amount of the monthly payment, and total number of monthly payments.
  • Maintain records for at least two years on advertisements, marketing materials related to price, financing or lease terms, add-ons offered, consumer transactions, training materials, scripts, written consumer complaints, and records that demonstrate compliance with the rule.

If the rule goes into effect, compliance will be mandatory, and the FTC has made it clear that it is prepared to enforce it and bring actions against non-compliant dealers.

To read the complete proposed FTC rule, click HERE.

Although tax, title, and license fees aren’t specifically covered in this proposed FTC rule, it’s always good business to accurately disclose all costs to your buyers, including fees related to out-of-state titling and registration.

ATC provides the industry’s most accurate tax, title, and registration fee information to make the car buying experience easier for your shoppers and more profitable for dealers, lenders, and auto technology companies. We work with every DMV, in every jurisdiction in the country, to make it easier for you to sell cars.

The truth is in the data: ATC is the fastest, most accurate TT&L data provider and when you GO ATC, you get the Greatest Of All Titling Companies!

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To learn more, contact us.

This shouldn’t come as a surprise to anyone, but men and women are different, and this holds true when buying a vehicle. In this blog post, we illuminate a few differences between how men and women buy cars so your dealership can help each in their purchase journey. 

New or used?

According to a survey by LendingTree, men are 57% more likely than women to buy a new car, with 28% of women saying they are likely to purchase new, versus 44% of men. Interestingly, women are 44% more likely than men to buy a used car, with 39% saying they intended to buy used versus 27% of men.

Technology versus practicality?

Research from Cars.com has shown that safety features like automatic braking are more popular with women than men, while men were interested in auto tech, such as Apple CarPlay and smartwatch integration.

It also noted women are more practical in their car searches, preferring brands known for their durability, reliability, and safety such as Honda and Jeep, while men searched image-conscious brands such as Lexus and Audi.

Women take longer to buy, or do they?

A statistic that is often quoted is that it men typically spend 63 days in their research, test drive, and purchase journey, whereas women typically take 75 days. But this is a nearly ten-year old statistic, and the pandemic has dramatically changed the vehicle buying process.

With more parts of the transaction moving online, consumers, especially women, feel more in control of the process. Women have traditionally felt more uncomfortable coming into a dealership than men, but since the pandemic, women have felt more at ease in the process without the pressure and gender bias of the dealership experience.

Takeaways for your dealership

  • Male car buyers tend to prefer luxury and style and female shopper prefer practicality and safety.
  • Men typically make purchase decisions faster than women so give female customers time and space to decide.
  • Younger salespeople might be your secret weapon with female buyers, as millennials grew up with both parents working and sharing financial decisions and as such, they have distinctly different views about gender roles in car shopping.

ATC provides the industry’s most accurate tax, title, and registration fee information to make the car buying experience easier for your shoppers and more profitable for dealers, lenders, and auto technology companies. We work with every DMV, in every jurisdiction in the country, to make it easier for you to sell cars. 

The truth is in the data: ATC is the fastest, most accurate TT&L data provider and when you GO ATC, you get the Greatest Of All Titling Companies!

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To learn more, contact us.

Automotive Titling Company (ATC), the industry leader in technology solutions for processing tax, title, and registration for out-of-state vehicle purchases, announced today that it has appointed Kane McCord as chief executive officer and a member of its Board of Directors. A consumer technology veteran, McCord brings more than 20 years of experience leading technology companies serving the retail and consumer industries. He succeeds Ken Alley, the company’s founder and president of 26 years.  

Backed by private equity firm Polaris Growth Fund, ATC serves thousands of automotive dealerships by providing the industry’s fastest and most reliable title and registration processing, enabling dealerships to focus on what they do best – delighting customers and increasing sales. ATC also offers a powerful API product enabling lenders and technology providers to quickly calculate both in-state and out-of-state taxes and registration fees in their online applications.

“There is a clear structural shift towards increased out-of-state automobile purchases,” said McCord, “and Ken and the ATC team have built the fastest and most reliable technology enabled solution in the marketplace with a 25+ year track record of excellence. I’m grateful to join the industry leader and thrilled that Ken will continue to provide strategic guidance as an active member of our Board of Directors.”

ATC founder Ken Alley partnered with Polaris Growth Fund in late 2020 to guide the company through its next phase of growth. “Having accomplished my vision of building the industry’s leading nationwide solution for out-of-state transaction processing,” said Alley, “I am now passing the baton to Kane, who has a history of rapidly growing technology-enabled businesses. Kane and the team are poised to continue our rapid pace of growth and provide our customers the unrivaled service and reliability they have come to expect from ATC, and I look forward to remaining active as a member of the Board.”

Bryce Youngren, Managing Partner of Polaris Growth Fund added, “In addition to his proven record of scaling billion-dollar plus technology firms, we believe Kane’s leadership and focus on delivering unrivaled value to customers, while providing employees with purposeful and high-impact career opportunities, is a perfect fit to extend and further enhance the operational excellence and strong culture of ATC.”

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This press is release is available for download here.

It has been said over and over that electric vehicles are the future. Has your dealership started selling them yet? As major manufacturers and start-ups introduce more and more EV models, you undoubtedly will. This blog post is meant to help you think about what you need to do and know to confidently sell electric vehicles, new or used, at your dealership.

First, a few statistics. In Q2 2022, EV registrations were up 66% over Q2 2021, accounting for 5.6% of all new car sales. GM has said 40% of its U.S. models will be electric by the end of 2025 and Ford says it will be all-electric by 2040. Jaguar has declared it will become an all-electric brand by 2025. Globally, sales of EVs hit 6.6 million in 2021, or 8.6% of all new car sales (IEA).

It’s clear that the time to start preparing for the electric future is now, and here are some suggestions to put you on the right road.

If you haven’t already, you should install several charging stations on your lot. Not only will you use them for your own inventory but providing the service free to customers will help keep them loyal. It also allows you to show first-time EVs buyers or browsers how to charge the vehicle and use it as a selling tool (“you’ll never stop at a pump or get gas on your hands or shoes again!”)

Start educating your staff and customers on EV driving range. Most EVs can go more than 200 miles on a full charge and some can reach 400 miles. EVs do well in stop-and-go driving but consume more battery power at steady highway speeds. Also, hot and cold temperatures reduce EV range because of AC and heater use.

It’s also time to move away from MPGs and start talking about kWhs (kilowatt hours) and cost per kWh. The average EV gets around 3 to 4 miles for every kWh and if it is driven 1,000 miles a month with a $0.20 per kWh electric rate at the owner’s home, the charging cost would be $55 to $65 each month. It’s time to train your team on kWh math!

EVs don’t require as much maintenance as internal combustion engine vehicles because they have fewer components so your service department will undergo a seismic shift in how and how often it provides services to customers.  

It might take decades for internal combustion engine vehicles to completely disappear and EV service will still include brakes, wheels and tires, and battery work. It will also include a lot of software and technology updates, so your service team should start learning EV basics now and positioning itself as THE authority on EV technology updates to prevent independent car centers from taking that business away from your dealership.

When selling EVs, lean into the environmental benefits of owning them; it’s as significant as the cost savings they provide.

Finally, keep close tabs on legislation regarding EV registration fees and tax credits so you can explain them to your buyers. Tax credits for EVs and hybrids are available, and because EVs use no gas, its users do not fund infrastructure improvements through the gas tax, so states will have to recoup that lost revenue from EV owners in some way, most commonly through higher annual registration fees. 

Sales of EVs are increasing and soon you will be selling more of them. We hope this blog post helped you consider things you need to do to sell more electric vehicles. Remember, EVs will still need to be properly titled and licensed and ATC will be here to help you do that.

ATC provides the industry’s most accurate tax, title, and registration fee information to make the car buying experience easier for your shoppers and more profitable for dealers, lenders, and auto technology companies. We work with every DMV, in every jurisdiction in the country, to make it easier for you to sell cars. 

The truth is in the data: ATC is the fastest, most accurate TT&L data provider and when you GO ATC, you get the Greatest Of All Titling Companies!

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To learn more, contact us.