How to save $4,000 on a secondhand electric car

How to save 4,000 Dollar on a secondhand electric car – In the near future, the purchase of a used electric vehicle will become much more affordable for certain consumers, but not all. In addition to a revised federal tax credit system for the purchase of new plug-in vehicles, the recently enacted Inflation Reduction Act provides the first benefit for the purchase of used electric vehicles.

However, it won’t take effect until 2024 and won’t apply to the majority of automobiles seen on Craigslist or Facebook Marketplace. Only automobiles sold by a licensed dealer for less than $25,000 and that have been in service for at least two years are eligible for the credit. It is only applicable for the first resale of a brand-new car.

The maximum amount of the credit is $4,000 or 30% of the vehicle’s price, whichever is less, therefore it applies only to automobiles priced under $13,500. Income limitations also apply and are half those for the new electric car credit. Gross yearly income for single taxpayers is limited to $75,000, for heads of household to $112,500, and for married couples to $150,000.

Due to the limits, the National Independent Automobile Dealers Association, which represents the used auto dealer business, told Fox News Digital that it does not believe the credit will have a significant impact on the used EV market. “According to the criteria outlined in the IRA, the conditions for every customer in search of a used EV would be exceedingly stringent,” the group said.

“Our members serve all income levels, and for couples meeting the threshold for joint filing — most likely families with one, two, or three children – this criterion makes it very hard to locate a used EV under $25,000 that is less than two years old. Although this criterion is a fair starting point, it raises more issues than it answers about how our dealers and the customers we serve might obtain these credits.”

How to save $4,000 on a secondhand electric car
How to save $4,000 on a secondhand electric car

 

In contrast to the new car credit, used automobiles do not need to fulfill more demanding local manufacturing and materials sourcing criteria, which have disqualified all but 21 plug-in vehicles from qualifying, according to Consumer Reports.

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“If you’re interested in an EV or plug-in hybrid that now qualifies for a tax credit, don’t wait, since it may no longer qualify for the benefit next year. However, if you are contemplating a used EV, it may be prudent to wait “Jake Fisher, senior director of the Auto Test Center at Consumer Reports, said.

Used automobile chain CarMax declined to comment on how the initiative may influence sales, but said that it supported the reform. “We are glad that the Inflation Reduction Act includes a tax credit for used electric vehicles,” the business added. CarMax‘s retail sales of used electric and hybrid cars have more than quadrupled in the last two years, making EVs one of our fastest-growing categories.

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