Now is the time to buy used electric cars too!

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We’ve written a few times about how the US electric vehicle tax credit is likely to be cut by Donald Trump and the Republicans in 2025, and that you should probably buy an electric car as soon as possible (by the end of 2024) if that’s your thing Want to take advantage of the $7,500 electric vehicle tax credit. Even if it wanted to, no automaker would be able to cut its prices by $7,500 to make up for the lost tax credit. However, it is not fair new Electric cars that buyers should rush to buy. The same goes for used electric cars, maybe even more so!

There are two reasons why today is the right day to buy an electric car.

On the one hand, there is the simple fact that you can also receive a tax credit when buying a used electric car. As the IRS writes: “If you purchase a qualified used electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a used clean vehicle tax credit.” The credit is $30 % of the sales price up to a maximum credit of $4,000.” This will most likely be gone in 2025 as well.

Second, the electric vehicle tax credit for new vehicles also affects used electric vehicle prices. If you can get a $7,500 tax credit for an electric car worth $40,000, that theoretically means your new electric car is only worth $32,500… right away. Why would someone pay over $32,500 for this car when they could get a brand new car for virtually the same price? In reality, the tax credit cannot reduce the value of a car by $7,500. However, to a certain extent, the tax credit significantly reduces the resale value of an electric car, meaning the price to a buyer is significantly lower. Take away the tax credit and…boom, used electric cars cost more.

So if you’ve been thinking about getting in on the electric fun, now is the time to buy one!

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