The Inflation Reduction Act has created a whole new market for EV buyers. While initially federal tax credits could only be used for new electric cars, as of January 1st, 2023, tax credits are available for used electric cars as well.
To get the $4,000 tax credit, make sure you read the requirements for the buyer and the car including the used EV must be at least two model years old, have a 7kwh battery or larger, and the final sales price must be under $25,000.
Here is a short list of the eight best used electric cars that qualify for the federal tax credit:
1. 2012-2015 Tesla Model S
Price: ~$21,000 After the Federal Tax Credit
You may think it’s impossible to find a used Tesla for less than $25,000, but you’d be wrong! Currently, there are 53 early-model Tesla Model S cars available throughout the US on Cars.com.
The best part is that all Tesla Model S and Xs that were originally purchased prior to 2019 come with free Tesla Supercharging FOR LIFE!
One thing to consider before buying an older used Tesla is that the warranty on the batteries expired at 8 years, and the cost to replace a Tesla battery is over $20,000! To make matters worse, there are currently no extended vehicle warranty companies that are willing to take on the risk of insuring EV batteries.
While it is far too soon to determine the real-life expectancy and failure rate of Tesla batteries, Tesla claims the batteries should last around 1500 battery cycles (full charge and discharge) or about 300,000 – 500,000 miles. However, this doesn’t take into consideration manufacturer defects, flaws, etc.
If you are set on buying a used Tesla, we suggest looking for one with lower miles. This may at minimum give you a chance to have some enjoyment before the lights go out… literally!
2012-2014 TESLA MODEL S
| Price Range | $24,000-$25,000 |
| Range | 208-265 miles |
| Car Warranty | 4-year/50,000 miles |
| Battery Warranty | 8-year/150,000 miles |
2. 2011-2017 Nissan Leaf
Price: $4,900-$8,000 After the Federal Tax Credit
If you are looking for a reliable, low-cost, no-frills EV, then look no further! The first generation Nissan Leaf, manufactured from 2010-2017, may be the perfect fit. Like Tesla, Nissan is an early adopter of EVs and has millions and millions of electric miles under their belts.
While the looks of the Leaf are not going to turn heads (at least not in a good way), with the tax credit you can find early versions for under $5,000, and that is a lot of car for not a lot of money.
The short range of the early Nissan Leaf may be its biggest limitation. The 2011-2014 Leafs had a range of about 73 miles. In 2015, the range increased to 85 miles, and a larger 30kWh battery was added in 2016 to increase the Leafs’ range to 107 miles.
While this range is a deal-breaker for many drivers, if you are a short-distance driver looking for a very affordable EV to drive around town, the price will be hard to beat.
2011-2017 Nissan Leaf
| Price Range | $7,000-$12,000 |
| Range | 73-107 miles |
| Car Warranty | 3-year/36,000 miles |
| Battery Warranty | 8-year/100,000 miles |
3. 2018-2020 Nissan Leaf SL and Plus
Price: $12,500-$18,000 After the Federal Tax Credit
Not to beat the Nissan drum, but if you are interested in the Leaf but wished it had a few extra creature comforts and a little more range, then it’s worth looking into the second generation Nissan Leaf.
Nissan’s redesign of the Leaf replaced the frog-eyed headlights with a more sleek look and upgraded the battery to a larger, 40 kWh version—extending the range to nearly 150 miles.
The Leaf SL trim package comes fully equipped with options like Pilot Assist, Apple CarPlay, Bose stereo, and heated leather seats.
If you need even more range then look at the Leaf Plus. It has a 62 kWh battery providing an EPA range of 226 miles and a larger 160 kW motor. The Leaf Plus can also use CHAdeMO rapid chargers up to 100 kW, for a quicker top-off.
2018-2020 Nissan Leaf
| Price Range | $16,500-$22,000 |
| Range | 149-226 miles |
| Car Warranty | 3-year/36,000 miles |
| Battery Warranty | 8-year/100,000 miles |
4. 2012-2014 Toyota RAV4 EV
Price: $8,000-$14,000 After the Federal Tax Credit
If you don’t live in California, you may not even know that Toyota made a RAV4 EV. This is because in the three short years that Toyota manufactured them, they only sold 3,777 in all, and only in California.
Believe it or not, the Toyota RAV4 EV was built in collaboration with Tesla and shares technology with the Tesla Model S. The RAV4 EV combines a Tesla/Panasonic-designed and produced battery and electric powertrain with Toyota’s popular SUV model.
The RAV4 EV unfortunately only came in front-wheel drive with no option for an all-wheel drive version. However, with a reasonable sticker price under $18,000 and the incentive of a $4,000 federal tax credit, it makes the RAV4 EV a good deal no matter where you live.
2012-2014 Toyota RAV4 EV
| Price Range | $11,000-$18,000 |
| Range | 80-105 miles |
| Car Warranty | 3-year/36,000 miles |
| Battery Warranty | 8-year/100,000 miles |
5. 2017-2020 Chevy Bolt
Price: $13,000-$20,000 After the Federal Tax Credit
Not to be confused with the Frankenstein’s Monster-like internal combustion engine charging a battery and motor electric Chevy Volt, the Chevy Bolt is an all-electric subcompact car. Debuting in late 2016, the Bolt was manufactured in partnership with the electronics giant LG.
This partnership may have backfired on Chevrolet when in late 2020, 51,000 2017-2019 Chevy Bolts had to be recalled due to the LG batteries catching fire.
To mitigate the risk of fire, Chevrolet has offered software updates that limit the battery’s charge to 90% until they can replace the faulty batteries. The good news is that the replacement LG batteries are the same that come in the 2020 Bolt and increase the range of the Bolt from 238 to 259 miles
This all being said, a used Chevy Bolt is a good option for a newer electric car that is still under warranty for less than $20,000. Just be sure the battery has been replaced!
2017-2020 Chevy Bolt
| Price Range | $17,000-$24,000 |
| Range | 259 miles |
| Car Warranty | 3-year/36,000 miles |
| Battery Warranty | 8-year/100,000 miles |
6. 2015-2019 Volkswagen e-Golf
Price: $5,600-$17,000 After the Federal Tax Credit
If you’re a Gen-X like me, you remember the “hot hatchback” craze of the 90s, and the VW e-Golf definitely sends me those fun vibes. Just add some lime green windshield wiper covers and a matching cell phone antenna, and I’m as happy as can be!
The best part of this used hatch is that it doesn’t take a drop of gas to zip you down the road, and with prices starting sub-$10,000 you can still afford the 12” subwoofers for the back!
Keep in mind that the 2015-2016 Models have a very low range of 83-miles and this is one reason for their low resale value. However, in 2017 VW increased the battery size giving the e-Golf a greater range of 125-miles.
So, if you’re going to buy yourself a sporty electric VW hatch, I would suggest looking at 2017 and newer.
2015-2019 Volkswagen e-Golf
| Price Range | $8,000-$21,000 |
| Range | 83-125 miles |
| Car Warranty | 6-year/72,000 miles |
| Battery Warranty | 8-year/100,000 miles |
7. 2015-2018 KIA Soul EV
Price: $8,400-$15,000 After the Federal Tax Credit
The used 2012-2018 KIA Soul EV can be found for far less than $19,000, and it’s even more affordable with the federal tax credit. You probably remember the KIA Soul since it became infamous with the memorable commercials of hamsters cruising the streets in a beat-thumping KIA Soul.
Hamsters aside, the KIA Soul offers the best warranty out of all the used EVs on our list. With a 5-year/60,000 mile warranty on the car and a 10-years/100,000 mile warranty on the battery, you will very likely be able to find a used Soul EV that will give you peace of mind by still being under its manufacturer’s warranty.
Like many other early model EVs on our list, the 2012-2017 KIA Soul EVs have a low range of only 93 miles. The 2018 KIA Soul had a slight battery upgrade giving it 111 miles of range.
2015-2018 KIA Soul EV
| Price Range | $12,000-$19,000 |
| Range | 93-111 miles |
| Car Warranty | 5-year/60,000 miles |
| Battery Warranty | 10-year/100,000 miles |
8. 2012-2018 Ford Focus Electric
Price: $5,600-$12,000 After the Federal Credit
Looking for an affordable used EV that you can drive to your grandparents’ house without triggering their misguided opinions of electric cars? Then look no further. The Ford Focus Electric hides the fact that it isn’t drinking petro better than any other EV.
While the earlier models have a very limited range of only 76 miles, the 2017 and 2018 Ford Focus Electric models offer a greater range of 115 miles. You can expect a slight price jump for the greater range.
The sporty-looking Focus Electric comes well equipped with a large info screen, Bluetooth, a backup camera, and heated seats. Originally sold only in California, New York, and New Jersey, they may be more challenging to find in other states.
2012-2018 Ford Focus Electric
| Price Range | $8,000-$16,000 |
| Range | 76-115 miles |
| Car Warranty | 3-year/60,000 miles |
| Battery Warranty | 8-year/100,000 miles |
Final Thoughts
Writing this article gets me excited about the next few years. While the cars listed here are a great baby step into EV experience, the next generation of new EVs that are coming to market today will soon become tried and true, affordable, used EVs, with greater range and technology.
I feel like a kid walking into a candy store, so much excitement, so much to choose from, I can’t wait! Maybe I’ll just start with the Volkswagen e-Golf… NO, the Tesla Model S… NO, the practical Nissan Leaf Plus… I can’t decide!
Let us know in the comments what you think is the best used electric car and which you’ll be choosing in 2023.
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