A $4,000 Incentive in Play for Affordable Used EVs

Used EV prices are an excellent option for first-time buyers, and buyers can qualify for a $4,000 tax credit if the vehicle is under $25,000.

If you find a used EV under $25,000 from a dealer, you may qualify for a $4,000 rebate. (Image source: GPointsstudio on Freepik)

By Paul Bordenkircher,

Paul Bordenkircher is a guest author at Plugged In EV and is a member of the Las Vegas EVA Chapter and Nevada Electric Vehicle Association.

The average transaction price (ATP) in March of 2023 for all new cars was $48,000, according to Kelly Blue Book (KBB). This 2023 ATP average includes luxury, gas, and electric vehicles, and a new Toyota Camry will start in the neighborhood of $40,000+ in 2023.

Many car buyers in 2023 are searching for lower prices – sub $20,000 or $15,000 – so an affordable used electric vehicle (EV) might be the answer. The good news is that used car prices have been trending downward since 2022:

• Cox Automotive says used EV prices are down 4.4% from April 2022

• And the analyst also reported a 3% price decline in April 2023.

A Certified Pre-Owned, Affordable Used EV Vehicle

I recommend buying a certified pre-owned vehicle because it includes an extended warranty and takes the guesswork out of buying a reliable car. Whether the vehicle is powered by gasoline or electricity, insist on it when car shopping.

To give you an idea of the kind of savings you can expect, I bought a used 2016 Chevy Spark EV, which sold for about $27,000 when it was new. When I bought this car in 2019 (just three years later), it could be purchased as low as $8,000, but was typically priced between  $10k and $12k.

Of course, the pandemic turned just about everything on its head, including car prices. Before you commit, check the latest promotions and lease deals and refer to any changes in the IRS rules regarding rebates and state-based incentives.

Moreover, a federal tax credit of $4,000 is available for used EVs. Qualifications include that the vehicle is at least two years old, sold by a dealer, and is under $25,000.