In the months before we even know some used plug-in hybrids will be eligible for a $4,000 used EV tax creditAccording to a recent price analysis, market interest in plug-in hybrid vehicles is growing.
In a blog post last month, the retail consortium Carmax It is explained that searches for the term “plug-in hybrid” have increased significantly since the beginning of 2021, reaching a peak in June 2022, when consumers searched for the term four times as many as with January 2021.
That was just before the EV values used seem to have peakedAccording to several companies that track used car prices.
According to Carmax, the average price of a used plug-in hybrid vehicle — along with a regular hybrid — is lower than a used electric vehicle, but slightly higher than the average price of a used gasoline vehicle. use.
Average Carmax price by vehicle type (March-August 2022)
The most commonly used plug-in hybrid models in Carmax’s inventory are the Toyota Prius Prime and Chevrolet Volt. So this trend could give a new life to the used — and perhaps appreciative — Volt. The plug-in hybrid hatchback was once hailed as a breakthrough for General Motors, but was quickly overshadowed by all-electric models and eventually a relatively short life.
In addition, the Toyota RAV4 Prime was the overall best-selling vehicle at Carmax between March and August 2022. On average, the crossover sold in less than a week of going on sale.
According to the used car retailer, the top states for plug-in hybrid vehicle sales are all on the West Coast, with California, Oregon and Washington ranked first, second and third respectively, followed followed by New Mexico and Nevada. It’s worth noting that many plug-in hybrids were originally sold in West Coast states, leaving behind a larger stock of used cars.
Toyota Prius Prime 2022
The report comes as the federal government prepares to introduce a $4,000 tax credit for used plug-in hybrid vehicles under the Inflation Reduction Act (IRA)—a credit that As of January 1, consumers can claim for tax year 2023 if they meet specific requirements. request.
Rules set by the IRA say that eligible vehicles must be at least two years old and they must have a battery of at least 7 kWh. They must cost less than $25,000, must be sold by a licensed dealer, and cannot be used twice to receive a credit. This credit also comes with an income limit of $75,000 for single filers, $150,000 for joint filers, and $112,500 for head of household filers. The Internal Revenue Service (IRS) also recently determined that this credit will Request more reports.
The IRS is find a way to fast track the rulesand on the used car side, they don’t depend on details like mineral sources or whether they’re made in the US. On the other hand, a revised EV tax credit of up to $7,500 for new cars is subject to full US component and sourcing guidelines that have been approved. delayed until Marchwith one rental loophole Whether that may apply to non-U.S.-made electric vehicles is also unclear.
