A simpler, older electric vehicle for running errands around town and shorter commutes can now be much cheaper to purchase, thanks to a newly implemented federal tax credit for USED electric vehicles.
For example, I am getting back a nice tax refund for the purchase of my 2015 Nissan Leaf EV (bought last April ’23 from a local Nissan dealership). So my total cost will be equivalent to that of a nice new carbon fiber bicycle, which is kind of amazing.
Why am I into this topic? I’m an efficiency and sustainability geek and I had a college engineering internship working on a part for GM’s first EV, the GM EV1. I’ve wanted an EV for some time — but the cost was prohibitive for me, until now.
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As early adopters buy newer EV’s there are plenty of used ones around in great condition, especially considering the fact that they have often taken excellent care of their cars. Also, these used EV’s are often smaller than newer models, with smaller batteries, and and less resources were used to create them in the first place. So how do you find a good one?
First, you might get a great deal on a used EV from a private party, but you won’t qualify for the federal tax credit that way (see rules below).
That being said, you might end up paying about the same price as one from a licensed dealer that does qualify for the credit. And since EV technologies have changed very quickly, private owners who are early adopters of EV technology can probably provide many more details about the specific vehicle and tips for getting the most out of it, when compared to a salesman at a dealership.
To learn about the rules around the federal tax credit, and also some good general information about finding a used EV, keep reading!
Understanding the Federal Tax Credit
Note: This guide was written in 2023. Changes may have occurred since then. Also read Recurrent’s detailed “Used EV Tax Credits & Eligibility Guide” which has been updated for 2024.
The used electric vehicle (EV) tax credit equals 30% of the sale price up to a maximum credit of $4,000.
Review the IRS Used Clean Vehicle Credit page and list of qualified vehicles. This is a part of the Inflation Reduction Act (IRA).
Rules from Recurrent Auto’s used EV credit page:
- Vehicles must be sold by a licensed dealer (not a private party)
- Vehicle sale less than $25k
- Income limit applies ($150,000 for married filing jointly or a surviving spouse, $112,500 for heads of households, $75,000 for all other filers) but may be able to use prior year if lower
- Isn’t a “direct rebate” or check sent, it goes into the “formula” for your federal taxes at end of year
- Tip: Try Recurrent Auto’s eligibility tool (enter a car’s VIN #)
Note: It appears that Tesla isn’t included in the list of qualified vehicles at the moment?
Finding a Used Electric Vehicle
If you’ve never owned an EV it’s a different experience and finding a good used car can take some time and research so be patient. Think about the following:
What Do I Really Need in a Car?
Think about what you truly need for “range” before buying — range can vary with temperature (hot or cold), driving style, available charging options, and terrain.
Where will you charge the car (home, work) — level 1/2/3 (denoting the speed of the charge and the type of plug(s) your car will need).
Will it be your primary vehicle?
What type/size vehicle you need?
Range anxiety: Older used EV’s often don’t have 300+ mile ranges like some newer models, but you’ll probably be surprised how capable a used EV is, especially if you can top up your charge around town or at home.
Battery Health
- Finding a used EV with a healthy battery pack is very important! Just like your mobile phone battery, your EV’s battery will slowly degrade through time. Replacement/fixing may be expensive, especially if your battery isn’t under warranty.
- Ask the dealer: What is the current battery capacity/state of health and expected range (responses may vary — the sales person might not be an EV expert)
- Ask the dealer: Is the battery still under warranty? What steps does the dealer take if the battery has major issues in the future (a single cell is bad, or the whole pack has degraded significantly)? What’s the cost to fix or replace? Is there any kickback for ‘recycling’ an existing pack?
- Battery and range reports on used EVs: Enter the VIN number into https://www.recurrentauto.com/ to run a report
Other Tips
Ask the dealer: Can you print the inspection checklist and provide maintenance history, number of owners, etc. For more details consider a CarFax or similar.
Summer heat: Consider if the battery has “active cooling” and read reviews from owners in places like Tucson and Phoenix, AZ. Try to park/charge in the shade.
Note: It may be difficult to search online for used EVs for sale since many website search filters don’t include battery health, types of charging plugs, etc. This really needs to get worked on. If buying from a dealer you might have better luck just calling around versus looking at their websites.
Extended Test Drive and Charging Check
Request an extended (longer than normal) test drive if possible. Check initial/final battery charge level, range, battery temperature, etc.
Also test all method(s) of charging if possible (level 1/2/3) to make sure it works. This is very important!
Note: You may be able to use diagnostic tools like LeafSpy for the Nissan Leaf, with more info than the dealer provides (battery health, etc).
Price Negotiation
Research prices and read reviews on Edmunds, Kelly Blue Book, Consumer Reports, and others. Dealer prices will likely be higher than private party sales, but combined with the used EV tax incentives you can see if you can get closer to that private party amount.
3rd Party Inspection
If you’ve located a vehicle you’d like to purchase, consider having a 3rd party mechanic check all standard systems (suspension, electrical, etc) with a “used vehicle pre-purchase inspection”. Share any dealer inspection report with them, to verify.
Luckily, EVs have far fewer moving parts and less maintenance than internal combustion engine (ICE) vehicles. So if the battery is in good shape and the car steers and brakes, it should be pretty reliable.
Charging Around Town
Learn which spots are reliable and uncrowded, as multiple companies offer charging stations and different plug types exist. Some charging locations are free but many have a charging or parking charge.
- PlugShare is a great website/app for locating charging locations that work for your particular vehicle
- Review recent “checkin reports” and photos from drivers (are there problems with a particular charging station across town that you were going to depend on?)
- To initiate a charging session and pay: Consider getting mobile apps for each company in your area (Blink, ChargePoint, Electrify America, Enel X, etc) — may be easier to set up accounts ahead of time (some charging stations accept credit cards but some work much better with the apps)
- A Better Route Planner is a net mobile app that helps you get a full trip plan including charge stops and trip duration. I believe it can also take realtime video from some vehicles, to have a more accurate “remaining range” data.
Charging At Home With Rooftop Solar
It sure is nice to charge an EV via solar panels. This is a relatively “fossil fuel free” way to keep your car going!
Conclusion
The used EV tax credit should help more people enter the EV world!
I’ve put a few thousand miles on the Leaf running errands (and driving to mtn bike rides and hikes!) in a year and it has been an interesting experience all around. I like to charge it off my solar panels at home during the day by using a normal wall outlet, and charging around town has been “ok” overall — the charging network here in Tucson is being improved, and that’s a good thing.
If you haven’t experienced an older EV, you’d be surprised how much you can get done with a “small” range and some recharging around town if needed.
I like the design of the older 2015 Nissan Leaf, it is much smaller and lighter than many new EV models with large batteries/ranges. Less resources were used to create the smaller car, and it should have very low maintenance costs and last for many years to come.
Helpful Links
Recurrent’s “Used EV Tax Credits & Eligibility Guide” which has been updated for 2024
IRS Used Clean Vehicle Credit page and list of qualified vehicles. This is a part of the Inflation Reduction Act (IRA)
Mobile apps like PlugShare are great. Also, A Better Route Planner helps you get a full trip plan including charge stops and trip duration
Search for the Electric Vehicle Association’s local groups and also look for forums/websites/Facebook groups. Reach out!
Links for Tucson, AZ Residents
Special EV plans for charging your EV during overnight (level 2)
Those with Time-of-Use or Demand Time-of-Use pricing plans can receive a 5% reduction on their Base Power and Purchased Power and Fuel Adjustment Clause charges during off-peak periods.
Rebates on level 2 home chargers
(Note: Check if your region can use the federal “Alternative Fuel Infrastructure Tax Credit” which is equal to 30% of the EV charger installation costs, up to $1,000. The tax credit applies to the equipment (the charger itself) and any labor or other costs associated with the installation)
Tucson Electric Vehicle Association is a great group with meetings and helpful resources for those wanting to join the EV world
Questions?
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© April 17, 2024 Chris Graber