Automotive
Inflation Reduction Act and Used EVs
These conversations are so meaningful. The world is shifting under the customer's feet, and they are inundated with interpretations and information every day. Making your store and team a reliable place to have real questions answered about the next 1, 5, or 10 years will keep the value the retail automotive industry has always offered fresh in their minds.
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David Long entrusted the wheel of this week's All Things Used Cars to a group of informed community members to share how the updated EV credit rules apply to used cars. Listen to the full replay on Clubhouse, or read on for the knowledge you may need when a customer comes to ask.
Used car requirements:
- Must have a minimum of a 7 kW battery in the car. Pretty much everything that plugs up is covered - older EVs, hybrids, and newer ones.
- The sale must go through a dealer. No, you cannot sell your used Tesla to your wife and get a tax credit.
- The sales price has to be under $25k, which is 17% of the used EVs on the market.
- The sale has to be to somebody other than the original owner. You can't just sell a car back and forth to get credits.
Cars from another market?
If the car and buyer are qualified for the credit, it does not matter where the original sale occurred.
How do customers get the credits?
Currently, the process is on the buyer. They will submit the VIN and appropriate information when filing their taxes and receive a credit. Within a few years, the government has plans to allow the credits to be applied at the time of the purchase, but the system is not in place.
