White House Meeting on Used EV Tax Credits

May 30, 2024

White House Meeting on Used EV Tax Credits

Recurrent collaborated with the Department of Treasury in late 2023 to shape and promote the rollout of point-of-sale used EV tax credits that launched in January.

Now Recurrent’s CEO, Scott Case, has been asked to join a Treasury Department and White House strategy session on the used EV tax credits. This roundtable will include a select number of industry executives and government officials, but it’s critical that a range of perspectives are included – from wholesale to retail to consumer. 

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Accelerating the used EV market

In the face of high interest rates, falling prices and federal incentives have made used EVs an attractive option. The average used gas car price $24,700 (CarGurus) compared to an average used EV price of $33,900. However, that is only part of the story.

  • The average used gas car is 12 years old – older than ever – while the average used EV is 4 years old.
  • 33% of used EVs qualify for a $4000 rebate based on price. You can check a specific VIN here.
  • Changes in used EV prices are tracked with the Recurrent Price Index (updated each quarter in the EV Market Report) which is down 28% since this time last year and 46% from its peak in June 2022.

Dealerships are taking advantage of these market conditions to help customers find EV options that fit their lifestyle and budget.

"The demand for used EV’s under the $25K tax cap is going to continue to intensify," said Alex Lawrence, dealership principle at EV Auto.  "The biggest concern customers have with these higher mile EV’s at the sub $25K price is the impact on battery health and warranty.  The short answer is these batteries — both under legitimate study and anecdotally — are lasting much longer than anyone predicted, so the concerns about longevity are largely unfounded.“