Prepare for the EV. If your house requires a new service panel, it’s good to find out early. Replacing a service panel is disruptive so it’s best to get it done when most convenient. Often that’s before the EV arrives and you need to charge it. Installing a new service panel is not cheap, but there is a 30% federal tax credit up to a value of $1,000 that can take the sting out of it.
Consider your first EV a “starter” EV. So, jump into the world of EVs but don’t stress over it. There are a lot of better EVs (more range, faster charging, possibly cheaper) coming in the years ahead. But don’t wait for those better EVs, because there will always be better versions coming after them. It’s best to get your feet wet, find out what you like and don’t like, and what you want in your next EV. Then when you’re ready to upgrade, the leap won’t be quite so far.
What is a starter EV in 2024? A Chevy Bolt or a Hyundai Kona are starter EVs. Used Bolts are cheaper than the Kona and there are more of them out there.
Used EV Tax Credit. To take advantage of the $4,000 used EV tax credit, the car must be two years old and cost less than $25,000. For 2024 that’s a 2022. For 2025 that’s a 2022 model.
Size of EV. If you want a slightly larger car than the Bolt, search for the Bolt EUV. It is fractionally larger (the wheelbase is three inches longer). Kelley estimates the value of a 2022 Bolt EUV with 20,000 miles (10k/yr x 2 years) is $18,000-$19,000. So well within the $25,000 limit of the tax credit. Note though that dealers are fully aware of the tax credit so the price of used EVs has edged higher.
Cars are not perfect, especially used cars. No new car is perfect. No used car is perfect. Engineering, manufacturing, and marketing are a combination of approximations and tradeoffs. Rank what’s important and keep those in mind. But remember, you need a car, and it should be an EV. Heated front seats and a heated steering wheel are on the top of my list.
Dealers always take a cut. That’s how they stay in business. You’re willing for the dealer to take a “reasonable” cut, but not “gouge” you. I found most dealers were asking $1,000-$3,000 more than what Kelley said the car is worth. Some already factor in the $4,000 credit to confuse matters further. In used cars, it’s buyer beware.
CarMax’s business model is “no haggling.” So their prices seem a little higher than others, but the extra cost may be worth it to simplify the transaction and reduce the anxiety car buying induces.
