Are Electric Vehicles Depreciating Too Fast?
Are electric vehicles depreciating faster than expected? As the used car market resets with prices returning to expected levels after the pandemic surge. Unfortunately, for EVs, this can mean a serious drop in expected pricing for used models, especially those less than two years old. Let’s look at what’s going on using the Kia Niro EV.
How old must an electric vehicle be to qualify for a Federal Tax Credit?
The Inflation Reduction Act requires a used electric vehicle to be at least two years old to qualify for up to $4,000 in tax credits. Unfortunately, a few EVs are less than a year old when they hit the used car market. This means these vehicles don’t qualify for the tax credit. This disqualification could factor into recent EV depreciation.
What does the Kia Niro EV include?
The Kia Niro EV is a pleasant vehicle with up to 253 miles of electric driving range. This basic model comes with:
- Heated seats
- Dual-zone climate controls
- Power liftgate
The upgraded Wave models add:
- 19-inch wheels
- Panoramic sunroof
- Upgraded sound system
Are EVs depreciating quickly?
Recently, InsideEVs discovered some Kia Niro EV models priced low. These Niro EV models are only a little over one year old, and the prices are alarming. When new, these Niro EV models sold for as much as $40,975, the quoted base price of the Wind trim.
One model showed up at an advertised price of $24,230, which shows that in less than a year, this electric vehicle lost 41% of its value. This version had roughly 26,000 miles on it, which seems like a lot during the first year of driving, but it’s not unheard of.
Another model with only 15,000 miles on the odometer showed up for $23,990. This seems like an extremely good deal. InsideEVs also found a few models with less than 3,000 miles on the odometer priced in the mid-to-high 20s.
Looking for older electric vehicles could be right for many buyers
If these low-mileage Kia Niro EV models are priced so low, imagine just how much more affordable older EVs could be. Once an electric vehicle reaches at least two years of age, it qualifies for the $4,000 Federal EV Tax Credit. This makes older EVs even more affordable than the Kia Niro EV models mentioned.
Let the EV bargain hunters loose to find used EVs with the right price and age to enjoy stunning deals and benefits.
