Carvana To Automatically Apply Clean Tax Credit While Buying Used EVs, Saving You Up To $4,000

Author: Anan Ashraf | July 11, 2024 08:07am

Online used car retailer Carvana (NYSE:CVNA) has reportedly introduced a new initiative that allows customers to avail of up to $4,000 discount at the time of purchase on used EVs and plug-in hybrids eligible for tax incentives.

What Happened: Instead of waiting for tax refunds, customers can now avail discount of up to $4,000 at the time of purchase of the vehicle and transfer the credit to Carvana once they file their taxes using IRS Form 8936, reported The Verge.

Carvana will provide the necessary paperwork for the customer’s tax return and handle the submission to the IRS portal for vehicle eligibility, the report said.

Carvana’s offer is available on its app or website for EVs or plug-in hybrids with a green tax credit banner. To be eligible for the tax credit, the vehicle must have a battery of at least 7kWh and a price less than or equal to $25,000, including shipping and delivery charges. The vehicle must also be at least two years older than the year it was purchased.

Furthermore, customers must confirm their eligibility in terms of income mandates to claim the credit at checkout, the report added.

Why It Matters: The offer might allow for making EVs more attractive to customers than gas vehicles and give used vehicle sales a bump up.

According to a study by Cox Automotive, retail used-vehicle sales in June were down 5% compared to May but up 3% year over year as per initial estimates. The average retail listing price for a used vehicle was down 1% over the month as well, the study said.

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