If you’ve been thinking about buying a used EV you might be surprised to find out that in many cases they’re one of the more affordable options right now.
While EVs on average tend to be more expensive than equivalent gas cars they also depreciate faster.
Even better, if you’re in the market for a gently used car, quite a few EVs and plug-in hybrids qualify for up a federal tax credit up to $4,000.
Program details and list of used EVs and plugin hybrids that may qualify for the credit.
Given what’s going on right now in Washington, this may be one of those cases where if you want to score the best price you might want to act sooner rather than later. Here’s why.
President Trump has made it clear he wants to get rid of EV tax incentives and with a Republican majority in Congress it seems likely the $4,000 tax credit will be rescinded this year.
The credit currently equals 30% of the sales price, with a maximum credit of $4,000. For example, if you buy an used EV for $12,500, the credit would be $3,750.
Since the program is primarily meant to help lower and middle income Americans, the credit also has an adjusted gross income cap of $150,000 for married couples and $75,000 for single filers
The next wildcard is tariffs. Because new car prices are expected to rise due to the president’s tariff war, used car prices are expected to be pushed up as well, as shoppers search for more affordable alternatives.
To qualify for the tax credit, the used EV can’t be sold for more than $25,000.
Given how fast EVs have been depreciating, there are a surprising large number of EVs that can be had under that cap.
For example, some of the older Mustang Mach-Es are now selling for $25,000 or less. It’s even possible to find some luxury EVs like Tesla’s Model S, Jaguar’s I-Pace or Cadillac’s CT6 plug-in hybrid under $25,000.
If you’re looking for a gently used, low mileage entry level EV like a Chevy Bolt or Kia Niro, you’ll have no problem sliding in under the cap.
All modern EVs cars, trucks and SUVs come with at least an 8-year, 100,000-mile battery warranty, and many warrant their powertrains for longer periods than gas engines and transmissions.
For all you motorcyclists out there, sorry but the credit doesn’t apply to EV motorcycles.
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