Used EV Tax Credit Ends September 30 – Save Up to $4,000 at Central Vermont Auto Mart

A major shift in federal electric vehicle (EV) policy is now law. With the passage of the Big Beautiful Bill Act, the federal used electric vehicle tax credit of up to $4,000 will officially end on September 30, 2025. For shoppers considering an EV, this change creates a critical deadline - and a limited-time opportunity to save big on your next used electric car.

Don't wait until the final week! Prices on used EVs are fluctuating in the wholesale market, where dealers source most of their inventory. Prices for one-owner EVs, two model years or older, have surged as customers look to seize this last chance to save over $4,000 on the federal tax credit for qualifying buyers. Our inventory is extremely low, as we are struggling to find used electric vehicles at a reasonable price point, but please reach out to us if you don't see what you are looking for, we may be able to help you still take advantage of these savings for a few more weeks.

The used EV credit, introduced under the Inflation Reduction Act, currently offers:

Up to $4,000 or 30% of the vehicle's sale price (whichever is less)

Applies to qualifying pre-owned EVs sold for $25,000 or less

Available only through licensed dealerships

Vehicles must be at least two years old

Vehicle must meet battery capacity requirements

Income eligibility applies (based on Modified Adjusted Gross Income)

This incentive has helped many Vermont drivers make the leap into an electric vehicle with lower upfront costs.

The new law phases out the credit entirely. That means:

No tax credit for used EVs purchased on or after October 1, 2025

Increased demand has already arrived and could get worse in the coming months, shrinking inventory and choices

Potential price increases as buyers rush to take advantage of the credit, driving down supply and increasing prices

If you're even thinking about going electric, this summer may be your last chance to combine federal savings and local utility incentives, saving you potentially thousands of dollars on a used EV. Don't delay, we sounded the alert in the fall 0f 2024 that Vermont state incentives were running out and may not be replaced, several customers erred by assuming they would be back, they weren't. We don't see a return of federal incentives in the current political and market environment.

To be eligible, the following conditions must be met:

1. Buy from a licensed dealer	2. Vehicle must be at least 2 model years old	3. Sale price must be $25,000 or less
4. Income Limits Apply: $75,000 (individual) $112,500 (head of household) $150,000 (joint return)	5. May only claim the credit once every 3 years

We've helped dozens of customers in Vermont take advantage of the used EV credit - and we're ready to help you too. From finding the right electric vehicle in our used car inventory for sale in Montpelier, Vermont, to guiding you through the tax credit process, we're here to make it simple.

The savings real, just take a look at this hypothetical example and you will see why this summer, before October 1, 2025 is the time shop for a used EV for sale before the federal incentive goes away.

Hypothetical Example - Before October 1, 2025

2020 Chevrolet Bolt $18,897

Federal Used EV Credit -$ 4,000

Final Cost $14,897

Icon encouraging customers to compare used car prices before and after incentives.

Hypothetical Example - After September 30, 2025

2020 Chevrolet Bolt $18,897

Federal Used EV Credit -$ 0

Final Cost $18,897

The sun is setting on one of the best EV incentives in U.S. history. If you have been considering an EV, with the tax credit ending September 30th, it's time to act, save, and drive confidently into the electric future.