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Carvana’s new tool makes it easier than ever to buy a used EV with a federal tax credit up front

Online vehicle marketplace Carvana has launched an exciting new feature that makes buying a used EV or PHEV easier than ever. US customers can now take advantage of up to $4,000 in savings at the point of sale through the federal government’s Clean Vehicle Tax Credit. Carvana has successfully streamlined this process, making affordable EVs priced as low as $12,000 much easier to obtain.

We’ve already seen EV adoption surpass the critical mass inflection point, and sales continue to grow despite the narratives that some media outlets are spewing out into the mire. As more and more all-electric models are introduced each year, the market of available used EVs is also growing at an exciting rate.

In a May 2024 report, Carvana shared that used EVs had narrowed the price gap with their combustion counterparts, setting the stage for a seemingly inevitable boom in sales growth. As a used vehicle sale specialist, Carvana has already begun putting helpful tools in place to ease the buying process for potential customers.

Many consumers still find EVs to be a foreign topic, and even those who would like to go electric can often be deterred by any given speed bump in the buying process, whether it be education, range anxiety, or that all-important factor of price.

On January 1, 2023, the Biden administration introduced extended and revamped federal tax credits for EV purchases. Part of that approved legislation included a new Clean Vehicle Tax Credit for used EVs from a licensed dealer priced at $25,000 or less.

The credit for new BEV purchases has temporarily staggered eligibility for several makes and models, thus further enticing consumers to explore a used EV through sites like Carvana. However, as with most federally regulated deals, the qualifying terms and conditions can be confusing and challenging.

To streamline this process, Carvana has just introduced a new feature to the site that does all of the research for you ahead of time. So you can choose a used EV to your liking, answer a few questions to confirm eligibility for the credit and take advantage of up to $4,000 off right then and there.

Carvana Used EV
Source: Carvana

Carvana adds point of sale discount to used EV purchases

Available to test for yourself on Carvana.com right now, the site’s new system automatically checks a used EV or PHEV’s eligibility for the Clean Vehicle Tax Credit, then applies it to your purchase at checkout.

This helpful tool speeds up the tax credit process with a point-of-sale discount rather than making you wait to see your savings on your tax bill the following April. Carvana states these upfront used EV savings also automatically flow through to eligible customers’ financing terms. Per Carvana’s chief product officer, Dan Gill:

Carvana has always believed in using technology to make the car buying process easier, more transparent and more accessible for our customers. By integrating the federal tax credit directly into our ecommerce experience, we are driving convenience and savings for the increasing portion of our customers interested in buying EVs.

The detailed vehicle eligibility checks we’re running behind the scenes help customers shop with confidence while the integrated tax credit savings help customers take advantage of more affordable entry points to the growing EV category

In doing a quick search ourselves, we found that it’s quite easy to navigate available used EVs in your zip code and see if they qualify for the Clean Vehicle Credit. The options aren’t the most new and exciting models just yet, but if you’re in the market for an ultra-affordable used EV, Carvana has plenty of options. For example, we found used 2021 Chevy Bolts available for under $16,000 with the full credit. That’s incredible.

If you’re in the market for a used EV, it’s worth checking out Carvana and testing out its new Clean Vehicle Credit tool to see if there’s a make and model that catches your eye. Check out the ease of the process in Carvana’s video below:

Source: Carvana

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Avatar for Scooter Doll Scooter Doll

Scooter Doll is a writer, designer and tech enthusiast born in Chicago and based on the West Coast. When he’s not offering the latest tech how tos or insights, he’s probably watching Chicago sports.
Please send any tips or suggestions, or dog photos to him at scooter@9to5mac.com

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