Georgia Nissan Dealers Brace For Tumbling LEAF Sales


Again, Not In Georgia

Again, Not In Georgia

Effective yesterday, Georgia’s $5,000 tax credit for purchasing electric cars disappeared.

The state of Georgia had been a hot bed for pure electric cars, like the Nissan LEAF.  But with the $5,000 incentive now gone, the state’s demand for electric cars will surely wane.

Nissan dealers in the state of Georgia are especially concerned.

Scott Middleton, sales manager at Town Center Nissan in Kennesaw, Georgia, says that monthly LEAF sales at that single dealership were typically in the range of 100 units.  He expects sales to fall to single digits starting in July:

“It’s going to drop like a cinder block off the side of a boat.”

Fred Diaz, Nissan senior vice president for U.S. sales, marketing and operations, told Automotive News that the expiration of Georgia’s $5,000 credit will surely impact sales, but he’s not sure how severe the impact will be:

“We don’t know how severe the impact will be yet.”

“We haven’t been selling LEAFs because people are environmental. We’ve been selling them because of the state credits.”

With Georgia’s state credit now gone, it’s quite likely that the state will move to midpack or near the bottom of the list of state-by-state sales of electric cars.

Source: Automotive News

Category: Nissan


30 responses to "Georgia Nissan Dealers Brace For Tumbling LEAF Sales"
  1. David Murray says:

    Georgia will be an interesting test for something, though. because they have a lot of EVs on the road, the credit certainly jumpstarted the EV bandwagon. So while I think it is a given that the lack of $5,000 credit will impact sales, the real question is by how much. Will the state still have higher EV adoption rates thanks to the initial wave of cars and consumer awareness?

    1. kdawg says:

      I was thinking the same thing. It will be measure of how much did the incentive get the snowball rolling, and how much did it just saturate the market. Or maybe it did both, but can the snowball push through the saturation?

      1. miggy says:

        What they need to do is increase the petrol tax, big win for the state.

        1. rad says:

          Miggy, they did increase the gas (petrol) taxby 7 cents. It was 8.7 cents/gallon, now 15.7. There is an additional 15 or so cents that are considered sales tax.

          They also added a $200/year fee for electric cars. One lawmaker stated that this was based on the average electric driver driving 24,000 miles a year, so the state would lose an average of $175, which they bumped up to $200.

          Totally nuts.

          1. Larry says:

            The average driver of an electric car drives 24,000 miles a year?! I’d like to see some evidence of this! I’d say it’s just a lie by a greedy politician.

    2. Mr. M says:

      Incentive in netherlands got the game rolling like in no other country in europe (except norway).
      2012 – 1.12%
      2013 – 5.55% (The outlander PHEV got the most of em)
      After 2013 no more incentives. After plumeting sales in the first quarter, they rose again slightly to
      2014 – 3.94%
      2015 (YTD May) – 5.47%

      so 1,5 years later they are back to great numbers. Hope it will be the same in georgia.

      Stats according ev-sales.blogspot, our friend Jose. Thanks Jose for your hard work!

      1. Mutwin Kraus says:

        I agree, Jose’s site is one of the best resources about EVs there are on the Internet (InsideEVs is another).

    3. Nate says:

      I could see that as well.

      It may “fall of the edge of a boat like a cinder block” initially” as the local guy quoted described, but not necessarily long term. Because, anyone who was on the edge of getting one in the near term probably went through extra effort (compared to the average person in a state w/out an expiring credit) to get one by now. Rest of the year will probably be tough.

      Long term though, being in a place where there are more on the road decreases the amount of time it takes for the buyers more cautions of new tech to get comfortable with the idea.

      Total cost of ownership for a Leaf is still very good and owner satisfaction are very strong, even in places (like where I am from) where there are no state tax credits.

  2. Stephen says:

    I’ll be one for the test case. We live in GA and leased a Leaf (O down, 24month, ~$36 a month after tax credit) . Not only did GA get rid of the credit but imposed an annual $200 tax. While interested in electric cars, we leased it for due to the incentive. I’ll be really curious to see what the used market will look like in end of 2016 with everyone coming off lease (my dealer said out of 1,000 sales, 99% were leases) and new models are announced. We’ll go electric or PEV when this one is up (depending on prices and new models)

    1. Mister G says:

      The Pope believes in global warming better rethink your position.

  3. Jack says:

    I’m curious as to what the LEAF sales count is in Georgia’s neighbor to the south, Florida. Florida has never had any incentive or disincentives for the purchase of EVs or plug-in hybrids. I rarely see LEAFs where I live, down on the southeast Florida coast. But, people I know who have taken trips to Atlanta say the city is crawling with them.

  4. Scott Franco, the greedy republican says:

    Good, no more artificial price supports, no more market distortion. I’ll bet the prices get cut down there right after the incentive lapses.

    I didn’t get a Leaf because the government has a program. I got it in spite of that.

    1. Brian says:

      Did you also decline to file for the tax credit?

      1. Joshua Burstyn says:

        Exactly. Do tell.

      2. scott franco the greedy republican says:

        Why would I do that? I paid for it with my taxes.

    2. Michael says:

      If you don’t want price distortion, then remove the incentives to the oil industry that you are paying for in your federal taxes. Funny how folks always seem to forget this important part of the equation.

      1. scott franco the greedy republican says:

        All in your fevered little imagination.

  5. Big Solar says:

    Maybe sales will continue ok in GA. as the 2015 volts and Leafs drop more in price in anticipation of the 2016s.

  6. Speculawyer says:

    So stupid that they just killed it. Why not cut it in half?

    1. philip d says:

      Not only did they kill it they decided to charge EVs a special makeup tax since they don’t pay a gas tax. That tax ends up being more over a year than a large SUV would pay over the same year in gas tax for 12,000 miles.

      In fact they were so eager and giddy to start sticking it to the alt fuel crowd that they accidentally sent out the same notifications to regular hybrid owners renewing their registrations in July.

      We have a Volt but our Camry Hybrid’s registration renews in July and we got a notice in the mail from the DMV declaring that we owed an additional $200 for our Camry! We were perplexed to say the least. I was driving the next morning and heard on local radio that the DMV had screwed up and would be refunding any regular hybrid owners that had already paid the fee erroneously.

  7. philip d says:

    It will certainly have an effect but I wouldn’t say that the tax incentive is the main driver of all EV sales at least in the greater Atlanta area where most EVs are sold anyway.

    I certainly see 10X more Leafs than any other EV here but I do see more than a couple of Teslas a day and more than a couple of Volts a day. I even saw an i8 at breakfast this morning and an i8 last week. The state incentive can’t account for those sales since the Volt doesn’t qualify and not too many people decide to buy a Tesla or an i8 based on saving $5,000

    So yes there will probably be less Leafs sold but I don’t think all EV and PHEV sales will take a catastrophic hit once the new models start rolling off the lots over this next year.

  8. Mister G says:

    Georgia’s state credit was an anomaly for a Republican (climate denier) controlled legislature. It was nice to see while it lasted.

  9. Mister G says:

    Leaf sales will tumble because most Georgians are global warming deniers. But the Pope believes in global warming.

    1. Djoni says:

      Well, finally, ther’s a pope that I like 🙂

      1. Brian says:

        It’s hard not to love Pope Francis.

    2. Mart says:

      Only 8% of Georgians self-identify as Roman Catholic.

      1. Brian says:

        Indeed. Many of the Christians in the southeast are in fact strongly anti-Catholic.

  10. Stephen says:

    Any report planned on WA incentive? Budget was approved yesterday, but have not been able to determine if sales tax exemption survived.

  11. Chris B says:

    Seems as though several states are in the same boat…Texas’ $2500 rebate expires in 6 days.