This Ford Electric SUV Would Benefit Most From New Used EV Tax Credit
The Inflation Reduction Act of 2022 includes a revised federal electric vehicle tax incentive program as well as billions of dollars to promote clean energy technology. The new act proposes a new EV incentive program that specifically applies to used models. Since automakers are rapidly producing new EVs, a used electric vehicle market is coming. One Ford electric SUV is perfectly suited for the new EV tax credit.
A used electric vehicle market is a big deal for Americans
Since electric vehicles are still in their infancy, there’s a huge learning curve for both the industry and consumers. For the first time ever, there will be a large selection of used electric vehicles for consumers to choose from sometime in this decade. So there will be some used EVs available. What’s the big deal?
The emergence of a used electric vehicle market is important because it makes EVs more accessible to working-class Americans. Consumers who can’t afford new vehicles or are intimidated by high prices often purchase used vehicles.
Used vehicles have more mileage are require maintenance faster than new vehicles, but they can be much more affordable. Most new vehicles also depreciate once they roll off of the car lot, so buying a lightly used vehicle can save big bucks.
Americans also save money through private sales where they are able to negotiate with a person rather than a salesman or dealership. Electric vehicles cost more than gas-powered vehicles because they use different materials, and automakers are still refining the EV production process. A used EV could cost significantly less than a new model. Thanks to the new proposed tax credit, consumers can also save an additional $4,000 on applicable vehicles.
A used Ford Mustang Mach-E could be a steal
The Ford Mustang Mach-E easily stole the show from competitors in late 2020. The 2021 model was like nothing Blue Oval fans had ever seen before. Many automotive enthusiasts and critics doubted that the electric Mustang SUV would be successful.
The Mach-E quickly became a hit among critics and consumers alike. It was one of the best-selling electric vehicles in America in 2021. MarketWatch claims that a used electric vehicle tax credit of up to $4,000 has been proposed as part of the Inflation Reduction Act of 2022. If the act makes it through the House of Representatives, consumers could potentially claim this $4,000 tax credit for used Mustang Mach-E purchases.
This used EV tax incentive could make the 2021 Ford Mustang Mach-E the most popular used electric vehicle because of how well it was received. The 2021 Ford Mustang Mach-E started at $42,895. The hope is that eventually, used Mach-E models will cost under $40K thanks to the new tax credit for used EV models and depreciation.
It’s a whole new world for used vehicles
The global pandemic has impacted practically every industry. The auto industry suffered from extreme supply chain issues that hiked the prices of many new and used vehicles. Some dealerships have taken advantage of the lack of available Ford EVs and jacked up prices even higher.
The world of used EVs is the wild west now, but the new incentive was proposed with the hopes that prices will eventually settle. The incentive should eventually make eligible EVs more accessible to average Americans that don’t want to spend over $45K on an SUV. If the act does pass, and the Mach-E is eligible, it’s easy to see how it could become very popular very fast in America.
Read more about the Mustang Mach-E in the next article below.
