- California provides first-time used electric vehicle (EV) buyers a rebate of $1,750 – one of the nation’s most generous state incentives.
- A new report, however, finds that fewer than 40 cars statewide meet the program’s requirements.
Last year, the federal government ended a tax incentive that helped EV buyers, including a $7,500 rebate on new electric cars and rebates of up to $4,000 on used EVs. The state of California responded by restoring it in part through MyFirstEV, a program that offers state residents up to $3,500 off a new EV and $1,750 off a used model.
The problem? Nearly no used cars qualify.
A new study from Bestest.com finds that “There are more than 3,000 used electric vehicles priced under $25,000 on dealer lots across California, but fewer than 40 qualify for the state’s $1,750 instant discount. And almost all of them are Ford Mustang Mach-Es.”
Related: Electric Car Rebates and Incentives: What to Know by State
Researchers scoured automakers’ own websites and third-party listings sites like Autotrader, finding just 32 used EVs statewide eligible for the discount – 31 of them Ford’s electric SUV.
Automakers Provide Some Money, and Direct It
- Under the program, the state provides half the funding for the rebate; automakers provide the other half.
- They decide whether their used vehicles are included. Most have opted against it.
Why so few qualifying used cars? The state provides half the program’s funding, with automakers matching California’s contribution.
The researchers explain, “The state set the rules, but each automaker decides where its matching money goes, and most chose new cars only.”
Only Ford, Volvo, Lucid, and Rivian have opted in on used cars. Other program requirements, such as a $25,000 price cap and the car needing to be a manufacturer certified pre-owned (CPO) model, mean few used EVs from luxury brands like Lucid and Volvo qualify.
So the discount for buyers of used EVs applies mostly to the Mach-E. Other automakers, we should note, could elect to apply the discount to used models. They may choose to do so in the future if they sell down an oversupply of new EVs.
Still in its first generation, the Mach-E has impressed our expert test drivers with its 320-mile maximum range and available hands-free highway driving tech. Bestest notes, “And because certification is a program requirement, every eligible Mach-E comes with at least 12 months or 12,000 miles of comprehensive coverage from Ford.”
A $1,750 discount makes it a more attractive used purchase. Note that the program is only available to California residents purchasing their first EV. The vehicle must be at least two model years old, and sold either by a dealer or directly by the brand that built it.
