This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.
Want to get a great deal on a car? Don’t forget about EV tax credits. See how you can get a discount of $3,750, $4,000, or more. [[{“value”:”
Image source: Upsplash/The Motley Fool
It often seems like there’s a lot of negativity in the media coverage of the electric vehicle (EV) market, and especially EV tax credits. EVs have been hyped and criticized. Some people proclaim EVs to be the inevitable future of transportation, while others object to the rapid push by the federal government to subsidize EVs.
Good-faith concerns and criticisms about EVs deserve to be heard and answered. But some of the negativity is unfair. Let’s look at a few realities about EV tax credits and whether or not buying an EV is a good deal for your budget.
Reality: Lots of cars qualify for new EV tax credits
There’s been a lot of media coverage about how hard it is to get EV tax credits, or how few new EVs actually qualify for the full $7,500 EV tax credit. It’s true that not every new EV will qualify; the federal government is trying to encourage people to not just buy “green” vehicles but to buy vehicles made in the U.S. To get the full $7,500, a new car needs to have its final assembly in North America and have its battery parts sourced from certain places.
As a result, not all makes and models of EV qualify for the full $7,500 of new EV tax credits. But the negativity is excessive. The list of vehicles that qualify for new EV tax credits is longer than you might think. As of May 7, 2024, according to the U.S. Department of Energy:
13 car companies’ EVs and plug-in hybrid electric vehicles (PHEVs) qualify for new EV tax credits of at least $3,750; and24 vehicles (EVs and PHEVs) qualify for the full $7,500 of new EV tax credit
If the EV you want is not on the list to qualify for new EV tax credits, you still might get a discount from the dealership. Some car makers are offering competitive discounts to match the EV tax credits, even if their vehicles don’t qualify.
Reality: Used EV tax credits might be a better deal
Want to buy a used car? The used EV tax credits might be an even better deal than new EV tax credits. You can get a used EV tax credit of up to $4,000, based on qualifying model year and sale price of the vehicle. And there are no limits on where or how the car was made — you can choose a much wider range of makes and models if you get a used EV tax credit.
I’m not in the market for a car in 2024. But if I was, I would go buy a used EV or plug-in hybrid and get that $4,000 used EV tax credit discount. There are deals to be had!
Reality: You can get EV tax credits immediately at the dealership
Lots of people might not realize just how easy it is to get EV tax credits. You don’t have to fill out a bunch of complicated IRS paperwork. Instead, the dealership helps you figure it out. The dealer can tell you which cars qualify for the EV tax credits, and you can get the tax credit as an immediate discount on the day you buy your car.
Receiving EV tax credits is not a complex process. This is not an extra hassle; it’s free money to help buy a car and fight climate change. (Terms apply; your income must be below certain levels to qualify for new or used EV tax credits.)
Bottom line
If you’re looking to buy a car in 2024, don’t overlook your options among used EVs and plug-in hybrid electric vehicles — especially if you have a garage or easy-to-access outdoor outlet so you can charge your car at home. Used EV sales have been slow in the past year, and there might be some great deals on a car lot near you.
If you find the right used EV or plug-in, you might get a car with tens of thousands of miles left under warranty, plenty of miles left on the battery, and you can get up to a $4,000 discount with used EV tax credits. Plus, a used (lower-priced) EV might help you get cheaper car insurance than a new vehicle. Be sure to shop around for EV car insurance before you start car-shopping.
Alert: highest cash back card we’ve seen now has 0% intro APR until 2025
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool recommends Maker. The Motley Fool has a disclosure policy.
“}]] Read More
