It is a fact of life that cars are expensive, both to purchase and maintain. Those with bad credit history often have trouble getting a car loan, but they may be able to afford a new set of wheels if they choose a plug-in hybrid or electric model, thanks to a recently revised tax credit.
Consumers may be able to receive up to $9,500 in federal credit and reimbursements for charging equipment and installation for going the green route and investing in the advanced technology, according to HybridCars.com. However, only certain cars are eligible for the tax break – the manufacturer must have sold less than 60,000 units of the model for it to be a valid choice.
The amount of the tax credit will vary based on the size of the vehicle's battery. For example, cars that are equipped with a 4 kWh lithium-ion battery qualify for $2,500, and at the opposite end of the spectrum, 16 kWh batteries pay out $7,500 in federal funds.
If consumers in poor financial standing are still unable to afford these vehicles, even with the credit, they are able to apply for a bad credit auto loan. The credit you receive can go towards paying back the loan.