The U.S. vehicle market has been inflated for much of the past three years, but prices are starting to normalize. One bright spot for consumers looking to save is used cars — specifically used electric vehicles.
A recent automotive report, Edmunds’ list of the best used electric vehicles under $25,000, gives you a glimpse into the affordable used EV marketplace.
Looking for a Cheap Used Electric Vehicle? Read This
The Edmunds’ listings, which were taken from July 2023 sales data, are based on the models’ ratings when they were new as well as their current availability.
“People are still looking for a deal on used cars,” says money expert Clark Howard. “And now there’s the added bonus attraction that used electric vehicles under $25,000 qualify, for most taxpayers, for a $4,000 tax credit.”
Let’s take a look at the top used electric vehicles priced under $25,000. After that, we’ll tell you more about the used vehicle tax credit and its stipulations.
| Vehicle | EPA-Estimated Range | Retail Price |
|---|---|---|
| 2019 Hyundai Kona | 258 Miles | From $14,999 |
| 2018 BMW i3 | 114 Miles | From $17,499 |
| 2017 Chevrolet Bolt EV | 238 Miles | From $12,699 |
| 2019 Kia Niro | 239 Miles | From $15,990 |
| 2019 Nissan LEAF | 150 to 226 Miles (depending on the trim) | From $11,999 |
How To Get the Used Clean Vehicle Tax Credit
The way the used clean vehicle tax credit works is that the credit equals 30% of the sale price up to a maximum amount of $4,000.
To qualify for the tax credit, the Internal Revenue Service (IRS) says you must meet the following criteria:
- You must buy from a licensed car dealer.
- The used electric vehicle must be $25,000 or less.
- It must be at least two model years old (So in 2024, think: 2022 models or older).
- There are also limits to your modified adjusted gross income for this credit.
“At the time of sale, a seller must give you information about your vehicle’s qualifications. Sellers must also register online and report the same information to the IRS. If they don’t, your vehicle won’t be eligible for the credit,” says the IRS. See the full details on the agency’s requirements.
How To Save Big on a Used Electric Vehicle Right Now
Clark says if you want to save big, take a look at the older electric vehicles.
“The first generation of electrics are unloved in the marketplace. And that’s why I keep talking about them because that’s where the deals are,” he says.
Although the driving range will have deteriorated greatly, Clark says a first-generation Nissan LEAF can be had for “dirt cheap money,” and may be a better option than an older gas-engine used car.
“You might need a part-time second or third car and devoting a lot of money to it is not a great idea, but at the same time, if you buy one that’s 20 or 25 years old, it’s going to come with a history that’s likely not pleasant and a lot of potential maintenance issues and repairs that you’re not likely to have with these newer, early-generation electric vehicles,” Clark says.
Want more money-saving advice? Read our guide on how to buy a used car.
