New, Used or Leased: Is Now the Time to Buy an Electric Vehicle?

Car buyers have had a tough go looking for their next road warrior. Inventories are low due to supply-chain troubles, which means prices for new and used cars have skyrocketed thanks to increased demand. If you add in the gas price hikes that dominated summer news headlines and passage of the EV-friendly Inflation Reduction Act, you now have a cacophony of issues to consider when searching for a new vehicle. And that includes whether or not an electric vehicle is in your near future. 

The Inflation Reduction Act extends the tax credit on new electric vehicles, including plug-in hybrids, until December 2032. The credit is worth up to $7,500, providing a hefty incentive for consumers to spring for an EV. And now used EVs that are at least two years old are eligible for a credit, too—up to $4,000 or 30% of the price of the vehicle, whichever is less. (Both new and used EVs are subject to price caps; see below.) For more detail on how this credit works, see EV Tax Credits Are Changing: What’s Ahead.