5 THINGS YOU NEED TO KNOW BEFORE BUYING A USED EV

There are good reasons to consider a used electric vehicle. Perhaps you want an EV as an additional household vehicle — for your teenager who just started to drive, perhaps — or as a replacement for a vehicle you already own.

But there are additional aspects about buying an EV that you’ll need to consider in order to get the best value. The car experts have put together five tips on what you need to know.

RESEARCH THE POSSIBLE FUEL COST SAVINGS

An EV typically costs less to charge and drive than paying to fill up the tank of a gas- or diesel-powered car. That can help you save money in your monthly fuel bills. But you’ll need to crunch some numbers to find out how much.

The EPA’s fueleconomy.gov website is a helpful resource for comparing the efficiency and annual fuel costs of different vehicles. Make sure to enter personalized information about how much you’ll be paying for electricity. Unlike the relatively stable pricing of gasoline, electricity costs vary widely depending on where you live and how you charge.

CERTAIN USED EVS QUALIFY FOR A TAX CREDIT

Starting in January 2023, the IRS revised its policy on EV tax credits on used vehicles purchased for $25,000 or less. Eligible vehicles qualify for a tax credit of 30% of the purchase price up to a maximum of $4,000. There are many caveats, but the eligible vehicles list is quite generous.

Perhaps the biggest limitations are that you must buy from a licensed dealer and the vehicle must be a model year at least two years earlier than the calendar year when it is purchased. You can learn more from the IRS’ Used Clean Vehicle Credit page and the EPA’s search function for eligible vehicles.

USED EVS WILL HAVE LESS RANGE THAN WHEN NEW