Here Are All the Deals — and the Caveats
If you’re like me, you want an electric car but the high prices are pushing you to think you should drive a gas-powered car for a few more years. However, federal tax credits of up to $4K on a used electric car can be a lure. So, I had to look.
And it’s not a bad lot. Not all electric cars that qualify are ideal for every driver, but there are some good ones.
These are our favorite EVs on sale right now that qualify for the federal clean vehicle credit.
What You Need to Know About the Used Car Federal EV Tax Credit
There are rules to qualify for the $4K tax credit on an electric car purchase. Aren’t there always? In a nutshell:
- The car must be purchased for under $25,000
- The credit amount is 30% of the price of the car, up to $4,000 (so, you only need to spend about $13,500 to realize the entire credit)
- The car must be more than 2 years old (date is based on calendar year, so if the purchase is in 2023, the model year must be 2021 or older)
- The car must be sold by a licensed dealership
- The car must be bought by an individual (not a business) for personal use
- The car cannot be flipped — the buyer must hold on to it and drive it
- The buyer cannot be the original owner of the car
- The buyer must qualify for EV tax incentives, meeting income and tax requirements
And last, one rule that buyers should vet carefully:
- Ideally, the car being purchased should be a one-owner car: it cannot have been sold since August, 16, 2022 and the tax credit is a one-time credit on the car
The good news here is that where the car or battery is made is not part of the credit criteria, as it is with new electric cars.
Is a Used Electric Car a Good Buy?
Typically, electric cars have fewer moving parts, they need less repair and software updates can take care of many issues. Tesla is known for addressing broken or non-working parts by allowing owners to tap their app, fill out a form or send a photo and have someone come out to make the fix — much more convenient than a dealership visit.
Also typically, since most drivers don’t drive their electric cars long distances every day, many EVs have low mileage.
And then, there’s the warranty, which is often longer for electric cars and their unique components than gas-powered cars.
What About Electric Car Recalls?
In general, automakers have your back on this; they are highly invested in the electric future and have (mostly) been doing the right thing to rectify recall issues. Ford bought back a number of Mustang Mach-e models with recall issues and fixed the rest; and Chevrolet recently announced a fix for Bolt EVs and EUVs with a risk of catching fire. While fire sounds scary, its comforting to know that electric cars are actually at less risk of catching fire than gas-powered cars.
How Long do Electric Car Batteries Last?
This is one of the most common questions: What is the life of electric car batteries. Most electric cars come with a 8 year/100,000 mile battery warranty on the battery, so even buying used, you should have a good number of years and thousands of miles left on the warranty.
To know what the warranty window is on a car you’re considering, check the “in service” date on a car you’re considering to see how much of the warranty remains.
Then, batteries are estimated to last between 10 and 20 years, but since many brands haven’t had EVs on the road that long, the true answer is still yet to be seen.
Another factor that makes us feel much more confident is the growing diagnostic, repair and replacement business for electric car batteries. There are startups that can diagnose a battery’s health down to the exact cell; they can tell us how to better drive an electric car to preserve the battery’s life. And repair and replacement will no doubt get cheaper as time goes on — like anything else, early-to-market products are often the most costly to repair, but as the market matures, cheaper options blossom.
Now, time to go shopping.
The Best Electric Cars to Buy Used
Again, caveats: Not all cars are right for all buyers and their daily driving demands. It’s best if you can charge an electric car at home. Ideally, buy a car with an electric range of at least 2x your daily driving miles; EV batteries will suffer a reduction in range over time — losing about 30% of their range over 10 years (better than your phone, TBH). And make sure you have space for everyone and everything you need to carry.
We shopped TrueCar and found these, our favorite used electric cars at or near $25K; some are right at or above the federal credit limit, but that’s what negotiation is all about.
- Kia Niro: Example: 2020 model with 20K miles listed for $25K. This EV was redesigned for the 2023 model year, making the OG a real deal. We like the Kia Niro for its 239 mile range and 201 HP in a cute, compact SUV. We love Kia’s dedication to all things tech, which means the Niro EV will feature a nice suite of safety, connectivity and more, even at a bargain price.
- Hyundai Ioniq: Example, a 2019 model with 40K miles advertised for $22K. Before the award winning Ioniq 5 and 6, the Ioniq lineup offered electric, hybrid and gas-powered models. The electric version has a 124 mile range and 118 HP surrounded by the same cabin and tech experience of its non-electric siblings.
- Nissan Leaf: Example: 2020 model with 15K miles listed for $18K. Nissan knows what they’re doing with electric cars; the Leaf is the most-sold and longest selling electric car on the road. It’s demure in what it delivers: a 150 mile range and 147 HP, and typically loaded with technology, much of it ahead of its time, so you’ll get today’s tech at yesterday’s price.
- Fiat 500e: Example, a 2019 model with 10K miles priced at $15K. This might win the award for the cutest used electric car you can buy, inside and out; our example has leather seats but we also saw one in Luminosa Orange with sport seats. The 500 e has an electric range of 84 miles and horsepower pegged at 111.
- BMW i3: Example, a 2019 model with 32K miles advertised for $24K: This is one of the outliers of electric cars with one of the most reliable systems on the road. With a range of 145 miles and tapping in at 170 HP, this little car will be as fun to drive as it is to look at — and it’s fun to look at, for certain.
- VW e-Golf: Example, a 2019 with 26K miles priced at $20K. This fun little hatch has a 125 mile range and puts out 134 HP, enough for the daily run-around. And it looks and feels like its non-electric siblings with nice tech, comfortable seating for 4 or 5 and folding rear seats.
- Chevy Bolt: Example, a 2020 model with 17K miles advertised for $22K. This car is Chevrolet’s proving ground, designed to show how much space and efficiency their electric cars are capable of. The interior is surprisingly roomy, the Bolt has a range of 259 miles and generates 200 HP. Add to that true one-pedal driving, and this little EV is a delight to own.
- Ford Mustang Mach-e: Example a 2021 model with 49K miles advertised for $26K. This is where your negotiation skills will save the day; there are a handful of Mach-e models priced just above the $25K federal tax credit threshold. However, models that have been sitting on a dealers lot for a while, that have a bit of damage or that perhaps the dealer will mark down in exchange for a very lucrative trade in may hit the mark. You must might end up with the sportiest 211 mile range, 198 HP electric car on the market.
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- Mini SE: Example, a 2021 model with 18K miles priced at $24K. This could be the most fun tool-around-town electric car on our list. Not only is it cute inside and out, it has an electric range of 110 miles and generates 181 HP. You might forget this is an electric car for its go-kart-esque drive experience (the “S” in its name stands for Sport) and iconic interior details.
- Tesla Model 3: Example, a 2018 model year with 54K advertised for $25K: There are only a few of these, though with the dropping price of new Tesla Model 3s and the introduction of a new redesign, we may see more deals on these. If you’re willing to look at older cars with more miles, you may also find a Model S that qualifies. If a Tesla is what you have your heart set on but your budget objected, it could now be within reach.
Is It Time to Go Electric?
I can’t get the idea of a $4K discount on a new-to-me electric car out of my mind. Or out of my heart.
Just think about it: fueling it for a quarter of the cost of gas. Little or no maintenance. And silent, emissions free driving. Maybe it’s time, and this is the way, to make the transition to electric driving.
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