Deals on used electric vehicles are plentiful right now, with prices lower than ever before. Lightly used Tesla Model S sedans, Subaru Solterras, and Lucid Airs are all available at great prices. However, the real surge in deals is expected to happen in early 2025 when more EVs become eligible for the federal used EV tax credit.
In January 2025, the 2023-model-year EVs will become eligible for a $4,000 tax credit or 30% of the vehicle’s purchase price, whichever is less. This means that buyers can get a 2023 Chevy Bolt for just over $10,000. The tax credit applies to vehicles with a model year that is at least two years older than the calendar year in which the car is sold.
Thanks to the increasing sales of new EVs, the number of credit-eligible EVs is expected to grow significantly each year. In 2023, U.S. EV sales reached 1.2 million units, up from 800,000 in 2022 and under 500,000 in 2021. This trend indicates that there will be a wide range of EVs available at discounted prices in the coming years.
Buyers must meet certain criteria to qualify for the tax credit, including income caps and purchasing the vehicle from a dealer. However, many 2023 EVs currently on the market are priced under the $25,000 cap, making them eligible for the tax credit. This means that buyers can potentially get a low-mileage EV for a fraction of its original price.
It’s important to note that prices of used EVs may fluctuate once the tax credit is applied. Some sellers may increase their asking prices to account for the discount, while others may lower prices to attract buyers. Overall, the availability of the federal tax credit makes it a great time to consider purchasing a used electric vehicle.
For more tips on buying EVs and staying updated on the latest deals, you can contact the author at tim.levin@insideevs.com. The increasing availability of used EVs and the federal tax credit make it an exciting time to consider making the switch to electric vehicles.