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Understanding the Used EV Tax Credit
How the Federal $4,000 credit impacts your sale.
What is the Used EV Tax Credit?
The IRS offers a tax credit of up to $4,000 for the purchase of eligible used electric vehicles. This credit is a massive incentive for buyers and significantly increases the demand—and value—of qualifying vehicles.
Does My EV Qualify?
To be eligible for the credit, the vehicle must meet these requirements at the time of sale:
- Sale Price: The final negotiated sale price must be $25,000 or less.
- Model Year: The vehicle must be at least 2 model years older than the current calendar year (e.g., in 2024, the vehicle must be a 2022 model or older).
- Ownership History: The vehicle must not have previously been transferred to a qualified buyer after August 16, 2022 (it can only claim the used credit once).
- Seller Status: The vehicle must be purchased through a registered dealer. Private party sales do not qualify.
Why Selling to an OnlyEV Dealer is Smart
Because private party sales do not qualify for the federal credit, buyers looking at vehicles under $25,000 strongly prefer buying from dealers. By selling your vehicle to a Verified Dealer on OnlyEV through a cash offer, the dealer can then resell the vehicle with the tax credit attached, allowing them to offer you a highly competitive wholesale price.