Hyundai IONIQ 5 Leads US Production with $7,500 Tax Credit; Chevy Offers No Payments on Equinox, Blazer EVs

Chevy offers no payments on Equinox and Blazer EVs for 120 days, but here’s the deal. Meanwhile, Hyundai IONIQ 5 to lead US production at the new EV plant with a $7,500 tax credit in sight.

Chevrolet Launches Equinox and Blazer EVs with $7,500 Tax Credit and 120-Day Payment Deferral

Chevrolet is transitioning to a new phase following the December halt in the production of the current-generation Bolt EV, with a new Bolt model expected next year, per Electrek.

Customers are receiving the new Equinox and Blazer EVs, built on GM's Ultium platform. The Equinox EV, with a range exceeding 300 miles, is described by GM as the "most affordable" in its segment.

The Equinox EV's 2LT model, with a base price of $43,995, is available now. Orders for the 1LT model, priced at $35,000, are anticipated to begin later this year.

Following a price cut of up to $6,520 after a March cease-sale, the Blazer EV now has a base price just above $50,000, with a sub-$50,000 model expected later this year.

The new Equinox and Blazer EVs are eligible for the $7,500 EV tax credit. When this credit is applied, the Equinox EV's price starts at $35,795, while the Blazer EV is available for $42,695.

To attract buyers, Chevrolet offers no payments for up to 120 days on the new Equinox and Blazer EVs.

However, CarsDirect, an online auto research firm, indicates that the offer may not be as beneficial as it seems. For example, the "Promo rate" for a 72-month term on the 2024 Equinox is 5.99%, and for the Blazer EV, it is 7.79%. With a 1.5% dealer markup allowed by GM Financial, the Blazer EV's APR can reach up to 9.29%.

This would result in over $15,400 in interest (excluding taxes and fees) on a $50,000 six-year loan. Despite the 120-day deferment, interest continues to accrue.

In addition to EV tax credits for new models, GM offers an extra $7,500 in "Ultium Promise Bonus Cash" for older models.

When considering a new Equinox or Blazer EV, it is advisable to confirm with the dealer if the specific model qualifies for the tax credit.

For a lower interest rate on a 60-month term, Chevrolet offers the Equinox EV at 3.9%, which is not included in the 120-day payment-free deal. In contrast, Tesla's Model Y offers a competitive interest rate of 0.99% for 72 months.

Hyundai IONIQ 5 to Lead U.S. Production at New $7.6B EV Plant, Qualifying for $7,500 Tax Credit

The already popular Hyundai electric vehicle is set to gain even more appeal. Hyundai claims that the IONIQ 5, produced at its new $7.6 billion EV and battery facility in Georgia, will be the first electric vehicle to qualify for the $7,500 federal tax credit.

Hyundai's remarkable success in the electric vehicle market is evident from the sales figures of the IONIQ 5. With nearly 34,000 models sold in the United States last year, reflecting a 48% year-over-year increase, this vehicle has become Hyundai's best-selling electric vehicle and a dominant force in the market.

In clearly demonstrating the growing popularity of Hyundai's electric vehicles, the company achieved a new sales record of 3,361 IONIQ 5 models in March. This was followed by 6,822 IONIQ 5 models delivered to customers in the first quarter of 2024, marking an impressive 18% year-over-year increase and a new record.

Hyundai's second electric vehicle, the IONIQ 6, began selling in the United States in January, but IONIQ 5 sales remain nearly double those of the electric sedan. In the interim, the electric SUV continues to be imported from Korea.

Hyundai's global chief operating officer, Jose Munoz, stated that the IONIQ 5, the first electric vehicle manufactured at the company's new EV and battery Metaplant in Georgia, is a "no-brainer." In an interview with Automotive News, Munoz said the IONIQ 5 "absolutely is the bestseller." Munoz added, "So I think it is a no-brainer that it needs to be that one," referring to Hyundai's first EV to roll out of the Metaplant.

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