For years, Tesla CEO Elon Musk has promised that his EV company would finally manufacture an affordable car in the $25,000 range. For years, he has missed his own deadlines … until now? Step into a showroom run by EV Auto, an electric car dealership with three locations in the US states of Utah and Colorado, and you can choose from several Model 3s all hovering around the $20,000 mark.
The catch? These cars have at least several thousand miles on them—because they’re used.
Some global EV makers aren’t in a great spot. But for buyers, it’s a great time to pick up a used electric car. Time has proven that even older batteries and motors are reliable. Federal tax credits meant to boost EV sales for years will expire this fall. Plus, the cars are relatively affordable. More than a third of the used electrics available right now are under $25,000, according to data collected by Edmunds and the startup Recurrent; more than half come in under $30,000. These are price points nearly unheard of in the American new car market—gas-powered cars included.
Now, electric-curious buyers long locked out of the zero-emission car market by fears about battery packs, range, and high prices seem to be inspired by a better selection of newer EVs. Recurrent data suggests that used electrics have been more in demand than gas-powered ones in five of the last seven months. (Even Teslas are moving off lots at a clip, despite a global movement that has protested Elon Musk by targeting his car company and its customers.)
The Clock Is Ticking
Buyers are facing a deadline. A federal tax program offers qualified purchasers up to $4,000 off a used electric vehicle that costs $25,000 or less. But the One Big Beautiful Bill, signed into law by President Donald Trump earlier this month, moved those credits’ expiration date from the end of 2032 to the end of this September.
The changes are obvious at EV Auto, says CEO Alex Lawrence. “It’s a bit chaotic right now,” he says. “As we get closer to September 30, it’s probably going to be even busier.”
In a twist, the news of the credits’ end seems to have brought late-breaking attention—and an opportunity for more price-sensitive buyers to get into an electric car. Brent Gruber, who directs the JD Power Electric Vehicle Experience, says the opportunity could be particularly exciting to younger, Gen Z car buyers, who surveys suggest are interested in driving climate-friendlier EVs but who don’t always have the money to buy one. “Used electric vehicles present a really great opportunity to jump into the EV pool,” says Gruber.
Anyone thinking about venturing into used electrics “should start doing your research and calling around now,” says Liz Najman, the director of market insights at Recurrent. The used EV tax credits apply only to certain vehicles—those that cost less than $25,000 and are model year 2023 or earlier—and there are only so many of those vehicles on the roads. The longer buyers wait, she says, the less selection. But those buying now will still find good deals, especially because dealers are working to keep cars under that $25,000 point. “A two-year-old used EV will have all the bells and whistles but at two-thirds of the price,” she says.
EV Battery Longevity
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