Here Are The Best Used EVs That Qualify For The $4,000 Tax Credit

Used cars have become less expensive. That’s been particularly true for EVs. According to data compiled by iSeeCars, the average price of used EVs 1-5 years old has dropped to $26,839, a 25% year-over-year decline. Used EVs are now cheaper on average than combustion cars and hybrids. Analysts expect the average price to drop even further to $25,000. 

$25,000 is an important figure for used EVs. It’s the threshold at which they become eligible for the $4,000 used EV tax credit implemented with the Inflation Reduction Act. As prices continue to drop, more (and better) EVs become eligible for that credit. 

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Like with the new EV tax credit, vehicles and owners must meet a lengthy list of requirements to be eligible. 

• The EV must be bought at a dealership and be at least two years old
• Total dealership fees for the vehicle (taxes excluded) must be less than $25,000.
• $4,000 is the maximum payout. Vehicles below $13,333 receive 30 percent of their value.
• The vehicle must be less than 14,000 pounds and have a 7 kWh battery pack or larger.
• The tax credit is income-limited. Buyers must earn less than $75,000 individually, $112,500 as a head of household or $150,000 as a joint filer. 
• The tax credit is non-refundable. It can offset money owed on taxes but not add to a buyer’s refund.
• Buyers who already received a tax credit within the previous three years can’t receive another.

Should you buy a used EV? It’s looking like an increasingly compelling option. Used EVs have fewer mechanical parts and experience less wear and tear than combustion vehicles (tires excepted). EV batteries are degrading more slowly than manufacturers initially expected. The larger batteries in newer EVs give them a longer useful shelf life. Even high-mileage EVs are likely to have electrical components under warranty still; many EVs were sold with warranties stretching to 100,000 miles or beyond.

What are the best used EVs for less than $25,000? Here are some of our favorite options. 

Tesla Model 3 (2018-22)

• Estimated Price: $21,000 to $25,000
• EPA Range: 220 to 358 miles
• Battery Size: 50-82 kWh
• Fast Charging Rate: 170 to 250 kW

The Model 3 was Tesla’s first take on an EV for the masses. After experiencing the biggest year-over-year dip in the value of any vehicle, according to iSeeCars, used Model 3s are now surprisingly affordable. To anyone unfamiliar with the intricacies of the Highland refresh, they look like brand-new versions. 

One thing to pay close attention to with a Model 3 is which version you are getting. Tesla offered dramatically different versions of the Model 3 and tweaked them several times. So a used Model 3 can deliver anywhere between 220 and 358 miles of EPA range and different performance. Fortunately, there are thousands of them out there, which should make finding the right spec for the right price with reasonable miles doable. 

Chevrolet Bolt EUV (2022)

• Estimated Price: $20,000 to $25,000
• EPA Range: 247 miles
• Battery Size: 65 kWh
• Fast Charging Rate: 55 kW

Chevrolet revamped the Bolt right before deciding to discontinue it. That revamp included a slightly larger version, the Bolt EUV. The Bolt EUV is far from the sexiest EV out there. But it delivers a commendable 247 miles of range and has more get-up-and-go than you’d expect, with a 6.5-second 0 to 60 mph time on a full charge. 

One knock on the Bolt EUV is that it uses previous-generation GM battery cells. So, it doesn’t have the super-fast charging available on new Ultium models. But with the right home charger, that should not matter too much. Unlike the brand-new models, the Bolt EUV still has Apple Carplay and Android Auto compatibility. 

Jaguar I-Pace (2019-20)

• Estimated Price: $22,000 to $25,000
• EPA Range: 246 miles
• Battery Size: 94 kWh
• Fast Charging Rate: 104 kW

The Ian Callum-designed Jaguar I-Pace felt like the future when it debuted. Critics swooned over it. It took home a boot-load of prestigious international awards. It didn’t sell as well as anticipated (with pricing perhaps playing a role), nor did it rocket Jaguar into a new era. But it’s still a solid EV available for an astonishingly cheap price.

The I-Pace looks sleek. It packs nearly 400 horsepower and a sub-5.0-second 0 to 60 mph time. Its EV numbers — 246 miles of range and about 40 minutes to charge to 80% — are no longer state of the art but remain serviceable. And it offers 25.3 cubic feet of cargo space behind the second row. The I-Pace is a great way to get into a Jag for less than the price of a Subaru Crosstrek. 

Hyundai Kona Electric (2018-22)

• Estimated Price: $18,000 to $23,000
• EPA Range: 258 miles
• Battery Size: 64 kWh
• Fast Charging Rate: 75 kW

Hyundai just launched the new Kona Electric. It’s a compelling and affordable package that can be a great option for the city. But truth be told, the initial version was a bit more fun. The first-gen Kona EV looked great, handled excellently and offered a solid 258 miles of range. Unlike the more sedate newer model, it packed an almost too punchy electric motor with 291 lb-ft of torque. 

Two caveats with the first-gen Kona EV. It can get tight in the second row and cargo areas — an issue the new model resolves. It also doesn’t have the latest Hyundai E-GMP 350 kW charging tech. 

BMW i3 (2019-21)

• Estimated Price: $20,000 to $25,000
• EPA Range: 153 miles
• Battery Size: 42.2 kWh
• Fast Charging Rate: 50 kW

BMW was one of the first legacy manufacturers to launch an EV with the i3 in 2014. It was a marvel of futuristic design at the time. And unlike many avant-garde automotive efforts, it has aged very well. While not spacious, its interior feels premium and modern more than ten years later. And it’s reasonably fun to drive for what it is with a quick electric motor and BMW tuning.

We recommend buying a BMW i3 from the end of its model run during the 2019-21 model years. A larger battery upped the range to an estimated 153 miles, which was far more usable than the initial model, which had little more than half that. A gasoline range extender could bump that even further to 200 miles. 

Volkswagen ID.4 (2021-22)

• Estimated Price: $20,000 to $25,000
• EPA Range: 250-260 miles
• Battery Size: 77 kWh
• Fast Charging Rate: 125 kW

VW primed us for fun and whimsy when it introduced the MEB platform. The first MEB production vehicle in America, the ID.4 crossover, disappointed on that front. But it’s still the conventional, practical family crossover many buyers seek. The original version handled well with a low center of gravity. It offers a ton of cargo space with more than 30 cubic feet behind the second row and up to 260 miles of range. 

You may need to take on a higher mileage — think 40,000 or 50,000 miles — ID.4 to hit the under $25,000 threshold. However, its 100,000-mile warranty on EV components should help alleviate that concern.

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