Maximize the Federal EV Tax Credit With These 4 Used Plug-in Hybrids
Plug-in hybrid vehicles give owners several benefits they can’t get from traditional models. These hybrids blend the fuel savings of a regular hybrid with the electric driving range of an EV. a few vehicles spring to mind for those looking for a great way to take advantage of the Federal EV Tax Credit for used PHEVs.
Do used PHEVs qualify for the Federal EV Tax Credit?
Although the list of qualifying vehicles shrinks with each passing year, the current Federal EV Tax Credit makes some plug-in hybrids eligible for up to $4,000 in credits. This money can be applied to the vehicle purchase price or used as a down payment, which makes it more useful than the previous credit.
To qualify for the used PHEV credit, the vehicle must be:
- 2022 model year or older
- Priced below $25,000
- Sold by a dealership
With these requirements in mind, here are a few PHEVs to consider:
2016-2018 BMW X5 xDrive40e
Some dealers might price this luxury hybrid SUV above the $25,000 cap. This SUV could probably be listed below this price on paper to ensure the tax credit can be applied. This is the previous generation of the X5, which had a wide range of models. The PHEV model uses a turbocharged 6-cylinder engine and hybrid system to deliver 308 horsepower, making this an impressive luxury SUV. The short 14-mile EV range won’t blow anyone away, but this BMW qualifies for the credit, saving buyers up to $4,000.
2017-2021 Toyota Prius Prime
As expected, the Prius shows up if hybrid is part of the conversation. The previous generation Toyota Prius Prime is likely near the top of the price limit for the credit but should have low miles and offer a useful 25-mile EV driving range. This is the final Prius before the new design, but it could be an excellent option when searching for used PHEVs that qualify for the tax credit.
2014-2016 Cadillac ELR
Many people probably forgot that Cadillac ever had a PHEV in the lineup. The ELR has lost up to 75% of its initial value. This means this PHEV should cost around $20,000. Take up to $4,000 off that price, and it’s a bargain-level luxurious plug-in hybrid coupe. This Cadillac is an attractive and elegant machine with a fuel-sipping PHEV setup and all the Cadillac luxury trappings.
2018-2019 Honda Clarity Plug-In Hybrid
The Honda Clarity was the most recent hybrid experiment from this automaker. The Clarity Plug-In Hybrid delivers up to 48 miles of electric driving range and 212 horsepower. These qualities make it a useful sedan. It is similar in size to the Civic, which puts it in the compact sedan class for its size. The Clarity PHEV should carry a $20,000 price tag, which is reduced when applying the Federal EV Tax Credit.
Source: Car and Driver