Electric vehicles (EVs) are finally reaching mass adoption. A Bloomberg analysis found that the tipping point for EV sales is 5%, or “the start of mass adoption, when technological preferences rapidly flip.” The United States reached this point in 2021, meaning that by 2025, 25% of new cars may be electric vehicles. Canada joined the list in 2022, and India is nearing the crucial threshold with 3% EV sales in the second quarter of 2023. The International Energy Agency’s Global Electric Vehicle Outlook noted that sales of EVs in the US rose by 55% in 2022, further proving that the United States is on the verge of mass adoption. But it’s not just new EV sales that are shaping the market. Statistics show that “Americans buy more than twice as many cars used as new,” which means that as the EV market matures, more used EVs originally bought by early adopters are making their way to a new demographic of car owners. One Consumer Reports article on buying a car in August 2023 even recommended that drivers buy a used EV because “used EV prices have dropped 26 percent over the last year.” Let’s look at how used EVs will make the adoption of electric vehicles in the US easier.
Used EVs are becoming more affordable
Used vehicles have always been popular due to their lower costs, and the earliest EV adopters are now selling their cars so they can buy the latest innovations. New EVs tend to cost more than their ICE counterparts due to the newer technology, so choosing a used vehicle – where EV and ICE prices will likely be more comparable – makes the choice easier. Now can buy a used EV and get used to it without having to commit to the higher price point. And while used EV owners can benefit from the lower fuel and maintenance costs, the federal government is making used EV purchases even more affordable.
Used EVs can qualify for tax incentives
While new EV owners can take advantage of the New Clean Vehicle Credit that is worth up to $7,500, used EV owners can now receive the Used Clean Vehicle Credit that is worth 30% of the sales price up to a maximum of $4,000 if buying in 2023 or later. To qualify, a vehicle must:
Have a sale price of $25,000 or less
Have a model year at least 2 years earlier than the calendar year when you buy it
Not have already been transferred after August 16, 2022, to a qualified buyer
Have a gross vehicle weight rating of less than 14,000 lbs.
Be an eligible fuel cell vehicle or plug-in EV with a battery capacity of least 7 kilowatt hours
Be for use primarily in the US
Be purchased from a licensed automotive dealer
You can see if a vehicle is eligible for the used clean vehicle credit by visiting https://www.fueleconomy.gov/feg/taxused.shtml. Learn more about the Used EV Tax Credit.
How do you claim the Used Clean Vehicle Credit?
Complete Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles and New Clean Vehicles), and file it with your tax return for the year you took possession of the vehicle.
EV charging stations are more accessible than ever before
Finally, the US government is taking concrete steps to install more charging stations to alleviate any concerns about so-called “range anxiety.” The federal government – along with many state and local governments – is providing all kinds of incentives to businesses to install EV charging infrastructure to erase the country’s EV charger shortfall, including EV charging infrastructure tax incentives, grants, and various other forms of funding. The plan is to eventually have direct current fast chargers along 75,000 miles of the country’s network of Interstate highways to accommodate EV travel and make range anxiety a thing of the past. Along with government action, more and more businesses are installing EV chargers on their premises. By purchasing a used EV, you are showing governments and businesses that there is a demand for EV charging infrastructure, thus incentivizing more companies to install them. When you purchase a used EV, the next logical step is to install a Level 2 charger in your home. Blink Charging has reliable and affordable residential EV charging options to choose from. Choose the Blink HQ 200 for charging at home, or the Blink Series 7 for multifamily residential charging. Ready to get started with EV charging at your residential property? Get the HQ 200 today for single-family homes or contact Blink Charging to get your quote for commercial charging at condos and multifamily.