Do You Suppose Used EV Costs Will Drop By $4,000 In 3 Months?

Final Up to date on: fifth July 2025, 12:11 am

As famous earlier in the present day, Republicans in Congress determined to finish all EV tax credit on September 30, 2025. That features the $4,000 tax credit score for used electrical automobiles. In principle, if you purchase a used electrical automobile, it’s successfully $4,000 cheaper because of the tax credit score.

The argument some individuals have made is that the used EV tax credit score simply raises used EV costs by $4,000. The argument is that individuals are solely going to pay what they’ll pay on the used EV market, so if they’ll afford a $12,000 automobile, they’ll purchase a $12,000 automobile with no tax credit score or they’ll purchase a $16,000 automobile with a $4,000 tax credit score. Due to this fact, with no tax credit score, used automobile sellers will simply promote EVs for $4,000 much less.

Earlier than attending to ramifications of that if it’s true, I needed to ballot you readers to see what you considered this. Do you suppose that used EV costs will successfully drop by $4,000 on October 1 or so? Or do you suppose they gained’t drop that a lot, if in any respect? The ballot embedded under (linked above) is only one brief query. Simply be sure you click on “Performed” after answering the query.

If used automobile costs do drop — whether or not by $4,000 or $3,000 or $2,000 — bear in mind that there’s after all one other facet to such a transaction. There’s the vendor’s facet. If the tax credit score was a ruse and didn’t really do something to assist used electrical automobile patrons, it definitely will need to have helped individuals promoting their EVs — usually to purchase one other one. When the resale worth of their automobile is 1000’s of {dollars} lower than it will have been, they’re both going to lose extra money or they’re simply going to carry off and never promote their EV, and never purchase a brand new one.

This could be even worse, as a result of this can considerably harm the electrical automobile market general — and also will thus result in fewer used electrical automobiles down the highway for second-hand patrons. Yikes.

Anyway, I expect to find out what you all take into consideration this subject, and can report again the ballot leads to a number of days or so.