Don't Miss Out on the $4,000 Federal Tax Incentive for Used Electric Vehicles
Act Now!
Leverage the $4,000 Federal Tax Incentive for Used Electric Vehicles Before It's Too Late.
As the political landscape changes with the incoming administration, the future of federal incentives for electric vehicles (EVs) is uncertain. The $4,000 federal tax credit for used EVs for sale, established under the Inflation Reduction Act, may be at risk of repeal.
At Upper Valley Auto Mart in White River Junction, Vermont, we encourage customers to act now to take advantage of this valuable incentive while it's still available. This tax credit, combined with local utility rebates and the overall cost savings of driving an EV, makes it the perfect time to consider making the switch to electric.
What Is the $4,000 Federal Tax Credit for Used EVs?
The federal government offers a tax credit of up to $4,000 for qualifying used EVs, making electric vehicles more accessible and affordable for buyers. Here's how it works:
- Vehicle Requirements: The EV must be at least two years old and have a sale price under $25,000.
- Income Limits: Buyers modified adjusted gross income must not exceed $75,000 for individuals or $150,000 for joint filers. More details are available by downloading a copy of the IRS's "Used Clean Vehicle Tax Credit Checklist" by clicking on this hyperlink. You can also go to the IRS's "Clean Vehicle Tax Credit" webpage for the most up to date information.
- Second Owners Only: The credit is only available for the first resale of the vehicle, after the initial owner of the vehicle drove it.
Immediate Benefits: How Dealerships Can Apply the Credit for Your Immediate Benefit
Starting in 2024, dealerships registered with the IRS can offer the federal tax credit at the point of sale. This allows buyers to immediately reduce the purchase price of the vehicle, making the incentive more accessible and practical.
For example:
- If you're purchasing a used EV for $25,000, the $4,000 credit can reduce the price to $21,000, significantly lowering the amount you need to finance.
At Upper Valley Auto Mart, we are equipped to help you navigate this process, ensuring that you take full advantage of the savings. Applying the credit at purchase also has broader financial benefits:
- Higher Down Payment: A larger down payment can lead to better loan terms, including lower interest rates. Even if you chose to finance your used car purchase with no money down, your federal tax credit will appear as a down payment for up to $4000.
- Loan Accessibility: Buyers with limited credit histories may qualify for loans they otherwise wouldn't, thanks to the reduced borrowing amount.
- Lower Monthly Payments: A smaller loan amount results in less interest paid over the length of the loan and more manageable monthly payments.
Check for Local and Utility Incentives in Vermont
While Vermont's state-level EV incentives have exhausted their funding for the rest of 2024 and into the first half of 2025, it may not be advisable to wait for potential new funding programs. If the Federal Incentive is discontinued, the absence of the $4000 Federal incentive could result in a greater financial impact than any potential state incentive, and even more detrimental if no state incentive emerges. Our knowledgeable staff can assist you in exploring your opportunities to purchase a used electric vehicle in Vermont and answer your questions about local rebates.
In addition to federal incentives, many Vermont utility companies offer rebates for EV purchases:
- Green Mountain Power: Provides rebates of up to $2,200 for new EVs and $1,500 for used EVs, with additional rebates for income-qualified customers.
- Vermont Electric Co-op: Offers credits for both EV purchases and home charging equipment.
- Burlington Electric Department: Provides rebates for both new and used EVs.
These programs can help further offset your costs and enhance the savings from going electric. Discover more details of what your utility has to offer.
The Benefits of Driving an EV
Financial and Environmental Benefits of Driving an EV
Switching to an EV offers savings that go beyond the initial purchase price to included:
- Lower Fuel Costs: Charging an EV typically costs significantly less than filling up a gas-powered car.
- Reduced Maintenance: EVs have fewer moving parts, no engine oil changes, and lower maintenance expenses over time.
- Environmental Impact: Electric vehicles (EVs) in use contribute to environmental cleanliness by lowering greenhouse gas emissions.
Together, these factors make owning an EV a cost-effective and eco-friendly choice.
Why Choose a Used Electric Vehicle?
A used EV , whether a BEV or a PHEV offers many of the same benefits as a new one but at a fraction of the cost:
- Affordability: Used EVs are significantly less expensive than their new counterparts.
- Depreciation Advantage: EVs depreciate quickly in their early years, which benefits used car buyers.
- Quiter Operation: You will need to test drive one to experience the difference! You never realize how load a ICE (internal combustion engine) is even at an idle, while the first impression you get driving an BEV is something along the lines of "Did I start the car, I can't hear it running, you sure I started it?"
- Lower Operation costs, with fewer moving parts, no engine oil changes or transmission fluid changes, the savings will add up. Indeed, the federal Office of Energy Efficiency and Renewable Energy estimates that the average maintenance cost for an electric vehicle is $0.06 per mile, compared to $0.10 per mile for a conventional gas-powered vehicle. For someone driving 18.000 miles a year, that adds up to $720 a year in savings or $3,600 over 5 years of ownership.
At Upper Valley Auto Mart, we offer a wide selection of high-quality used electric vehicles for sale in Vermont, including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Our inventory over the past couple of years has included popular models like the Nissan Leaf, Chevrolet Volt, Tesla Model 3, Tesla Model Y. We have also added some EV's such as the BMW 5 series PHEV, Mini Cooper EV and Toyota Prius PHEV's when we find a great value proposition for our customers to consider. Each used EV vehicle undergoes rigorous inspections to ensure reliability and performance.
Our team is here to guide you through the process of selecting the right used vehicle for your needs and taking advantage of all available incentives.
Simplify Your EV Buying Process
Buying an EV doesn't have to be complicated. Here's how we make it easy:
- Vehicle Selection: We'll help you find a vehicle that meets your needs and budget.
- Incentive Assistance: We'll explain the federal tax credit and work with you to ensure you qualify and to apply it at the point of sale when possible.
- Financing Options: Our financing experts will work with you to secure a great auto loan in Vermont with terms, tailored to your situation.
Act Now Before It's Too Late
The federal $4,000 tax credit for used EVs is an incredible opportunity-but its future is uncertain. Delaying your purchase could mean missing out on thousands of dollars in savings. Visit Upper Valley Auto Mart in White River Junction, Vermont, today to browse our inventory of used EVs and let us help you make the switch to electric while the incentives last.
FAQs
You can now transfer the credit to participating dealerships at the point of sale, reducing your purchase price immediately. Our team will be happy to assist you with the process.
Yes, combining incentives maximizes your savings. Ask our staff for assistance in identifying available programs.
Only qualifying vehicles meet the federal tax credit requirements. Our staff can help you determine eligibility.
A larger down payment, enhanced by the $4,000 credit, can lower your monthly payments, reduce interest costs, and may improve loan terms being offered.
No, only a dealer registered and approved by the IRS can pass the credit along at time of purchase.
