Economics of Used EV Tax Credit

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what_do_you_think

New Member
Suppose you buy a 2023 model EV today.

Will the price of the EV be higher on Jan 1 2024?

If one can afford it, does it make economic sense to purchase and then sell a 2023 model to make 4000?

Can the same be done with a 2022 model in the same time period (buying and then selling after a few months)
 
what_do_you_think said:
Suppose you buy a 2023 model EV today.

Will the price of the EV be higher on Jan 1 2024?

If one can afford it, does it make economic sense to purchase and then sell a 2023 model to make 4000?

Can the same be done with a 2022 model in the same time period (buying and then selling after a few months)
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Is this going to be a problem? "Not have already been transferred after August 16, 2022 to a qualified buyer." After reading it again, since you are buying to resell the vehicle, you are not a qualified buyer.

You are assuming that the car's value will go up. That's not generally not the case for cars, especially due to the old technology, battery warranty and so on.

For the car's value to increase something major would have to happen to the economy.
 
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marshall said:
Is this going to be a problem? "Not have already been transferred after August 16, 2022 to a qualified buyer." After reading it again, since you are buying to resell the vehicle, you are not a qualified buyer.

You are assuming that the car's value will go up. That's not generally not the case for cars, especially due to the old technology, battery warranty and so on.

For the car's value to increase something major would have to happen to the economy.
Click to expand...

Remember that used car prices, including used EVs, rose a fair amount for a while due to shortage of vehicle inventory largely caused by supply chain issues. Those have been pretty well resolved for a while and used car prices have been dropping. It might be that the recently discontinued Bolt will be an exception, but I wouldn't count on it.
 
Elon seems to think Tesla's will increase in value. So if you believe him, then that's where you should invest your money.
 
marshall said:
Is this going to be a problem? "Not have already been transferred after August 16, 2022 to a qualified buyer." After reading it again, since you are buying to resell the vehicle, you are not a qualified buyer.

You are assuming that the car's value will go up. That's not generally not the case for cars, especially due to the old technology, battery warranty and so on.

For the car's value to increase something major would have to happen to the economy.
Click to expand...
Yes, this prevents someone from making any money in this way. Once you bought a used EV after August 16, 2022, it then becomes less valuable on the resale market than those same cars that are being resold for the first time. Also, the market just doesn't take the tax credit into account nearly as much as you would think. I had similar questions when the EV tax credit first became a thing. Used EV prices did not go up at all when the used EV credit first went into effect.
 
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