If you’re in the market for an affordable electric vehicle (EV) priced under $25,000, there is good news for you. You can now receive an up-front federal rebate on the purchase of a new or used EV, rather than waiting to claim it as a tax credit. This rebate allows buyers to receive 30 percent off the sale price of a used EV, up to a maximum of $4,000. To be eligible for this rebate, the used electric car must meet certain criteria, including being two model years older than the current calendar year, priced below $25,000, having a minimum battery capacity of 7.0 kWh, a gross vehicle weight rating of less than 14,000 pounds, and no previous claim for the used EV tax credit. Additionally, the used EV must be sold by a dealership, not a private seller.
Car and Driver’s “What’s My Car Worth” tool was used to determine the values of various EVs, with prices ranging between $15,000 and $25,000 to maximize the government incentive. While the vehicles must be sold by a dealership to qualify for the tax credit, services like KeySavvy can facilitate the sale of private vehicles for a small fee, making them eligible for the credit.
Some of the top affordable EVs under $25,000 include the 2022 Chevrolet Bolt EUV, 2018—2022 Tesla Model 3, 2012—2014 Tesla Model S Performance and P85, 2019—2022 Hyundai Kona Electric, 2019—2021 Hyundai Ioniq Electric, 2022 Mazda MX-30, 2019—2022 Nissan Leaf Plus, and 2018–2021 BMW i3.
The Chevrolet Bolt EUV, priced at $38,495 in 2022, is a good choice for a used EV, offering a well-equipped model for around $25,000 with features like Super Cruise. The Tesla Model 3 remains a popular option, known for its range, driving performance, and reliable charging speeds. The Tesla Model S, particularly the Performance and P85 trims, can now be purchased at a fraction of its original price, offering high performance at an affordable cost.
The Hyundai Kona Electric and Ioniq Electric provide options for those looking for a fun-to-drive EV with decent range, while the Mazda MX-30, Nissan Leaf Plus, and BMW i3 offer additional choices in the affordable EV market.
Overall, with the availability of federal rebates and a growing market for used EVs, it is now easier than ever to find a quality electric vehicle at an affordable price. Whether you’re looking for a compact hatchback or a luxury sedan, there are plenty of options to choose from in the under $25,000 price range.