Used EV rebate sale price

Ask the Hackrs Used Cars
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1

I’ve been looking around at used EVs and PHEVs with the credits ending, and I’m not sure if I’m reading the rules wrong or dealerships are playing games. I thought that it must be a sale price of $25k or under and only 1 prior owner.

I’ve seen a few listed right under $25k, but then the fine print states that the sales price is after the $4k rebate. So that means the actual sales price would be somewhere around $28,xxx and that wouldn’t qualify for the rebate because it’s over $25k, correct? Or am I looking at this wrong?

2

And then you find out that the rebate doesnt apply and its 4k more.

Welcome another contestant to Do Dealers Lie?

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3

Very likely sloppy use of the same boilerplate that they use on sub-$25k cars that actually qualify for the rebate.

What car(s) are you looking at?

4

I think it is more complicated than that. Car can have more than one owner just can’t have changed hands after the law took effect which was in mid 2022 I think but you can google it. Also it isn’t just the sale price, any charges not required by law like doc fees must also fall under 25k. I suspect that cars that qualify for the tax credit are worth about 4k more than cars that don’t, but I’m a cynic.

5

Here is the full rule list from the IRS: https://www.irs.gov/pub/irs-pdf/p5866a.pdf

Please note that the price must be under $25k including all dealer fees (doc etc). If the dealer has some BS recon fee etc, that goes into the calculation. Even if the dealer applies it at time of sale you can still owe it back when the IRS audits this and the dealer is not responsible for it.

TONS of fraud in this right now, I would be very weary of any dealer that doesn’t have the above PDF memorized as they are probably going to mess it up and YOU will owe, not them.

Please note that ALL items on that check list must be checked for the buyer and the car to qualify.

The vehicle must not have changed hands since august 16th 2022 also.

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