Yeah, I know, I write about EVs a lot for a blog focused on financial literacy for educators. Part of that reason is because of the climate emergency we are presently in that I think we should all be urgently addressing. But, even ignoring the climate emergency, EVs are just way more efficient, less hassle to own, safer, lower cost of ownership, more enjoyable car to drive than ICE vehicles. One of the problems for some folks right now, however, is that because they are still a new technology the initial purchase price can still be pretty high (although incentives generally make them less expensive than the average new car Americans are buying). And the used EV market is still pretty nascent, with many of the vehicle available being from earlier generations of EV that had limited range and sometimes battery degradation issues because they didn’t include thermal battery control.
But the used market is expanding quickly and starting to include more modern EVs that have much better range and batteries in them. This is particularly true in Colorado for folks with lower incomes (less than 80% of median household income for their county) because of various stackable incentives. Here are three incentives that apply to used EVs for many Coloradans.
- Federal Incentive
- Up to 30% of the MSRP with a $4,000 maximum.
- MSRP of $25,000 or less).
- The model year has to be at least two years prior to the year you are purchasing (which means if purchasing now, it has to be a 2022 or older).
- Your modified adjusted gross income (AGI) may not exceed $150,000 for married filing jointly or a surviving spouse, $112,500 for heads of households, or $75,000 for all other filers (you can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less.)
- Xcel Energy Incentive
- $3,000
- Must be an Xcel Energy Customer.
- MSRP of $50,000 or less.
- Have to qualify as low income under any one of multiple tests, including a fairly generous 80% of median household income for your county. (As an example, most young teachers in Colorado will likely qualify for this unless they have a spouse who makes a lot of money.)
- Vehicle Exchange Colorado Program
- $4,000
- Qualify as low income (less than 80% of median household income for your county)
- Have an operational vehicle to trade in that is 2012 model year or older (or has failed an emissions test).
That means for Xcel Energy Customers in Colorado who make less than 80% of the median household income for their county and have an older vehicle to trade in, they will likely get up to $11,000 off a used EV. The EV does have to be from a dealer (not a private sale). But as of this writing, there are also some amazing deals on used EVs through Hertz.
For example, here is a standard range 2022 Tesla Model 3 with 45,000 miles for $23,938, which means it could be as low as $12,938 for many Coloradans. Yes, rental vehicles sometimes show more wear and tear than others (although not always). But getting a pretty low mileage Tesla Model 3 for under $13,000? That’s a deal that literally will pay for itself in fuel savings in 5-10 years (depending on the number of miles you drive each year).
And even if you are not in Colorado, check out Hertz’s used EV site and do a search for your area (or even wider, you can always fly one way somewhere and drive it home). There are some (Bolts, Leafs) for under $15,000 (before the $4,000 federal incentive, plus any state or local incentives you may have) that would be great everyday drivers. (I wouldn’t generally recommend them as road trip cars, stick to the used Tesla’s for that.)
Fisch Financial 