Here’s How Cheap A Used Tesla Model S Has Become Thanks To Government Incentives

For better or worse, the Tesla Model S is a car that changed the world. It changed people’s perception of electric cars, brought about the first truly reliable charging network in North America, and signaled the dawn of a new era. Because Tesla’s kept it on sale forever, early examples are surprisingly cheap, and some of them just got cheaper thanks to Uncle Sam.

It’s January, which means that the federal used EV rebate is now in effect, offering fortunate aspiring EV buyers a tax rebate for 30 percent of the sale price of a used EV bought from a dealer, up to a maximum of $4,000.

So what’s the fine print? Well, on the ownership front, you can’t be a dependent on someone else’s tax return, you can’t have “claimed another used clean vehicle credit in the 3 years before the purchase date,” you need to be buying used from a dealership for personal use, and you can’t be the car’s original owner. Are there income caps? Absolutely. According to the IRS, incomes caps are based on modified adjusted gross income, and they go as follows:

• $150,000 for married filing jointly or a surviving spouse
• $112,500 for heads of households
• $75,000 for all other filers

As for the car, as per the IRS, it must:

• Have a sale price of $25,000 or less. Sale price includes all dealer-imposed costs or fees not required by law. It doesn’t include costs or fees required by law, such as taxes or title and registration fees.
• Have a model year at least 2 years earlier than the calendar year when you buy it. For example, a vehicle purchased in 2023 would need a model year of 2021 or older.
• Not have already been transferred after August 16, 2022, to a qualified buyer.
• Have a gross vehicle weight rating of less than 14,000 pounds
• Be an eligible FCV or plug-in EV with a battery capacity of least 7 kilowatt hours
• Be for use primarily in the United States

You know what this means? The mack-daddy of revolutionary EVs, the Tesla Model S, is now in seriously cheap territory, depending on who you buy it from.

Take this 2013 Tesla Model S P85, which has reportedly received a new battery pack and a desirable eMMC upgrade. It was sold by a dealership on Cars & Bids a few days ago for $18,500. Since that figure maxes out the $4,000 cap, subtracting four grand from the price leaves us with a net price of $14,500. That’s $14,500 for a big, fast luxury sedan with 50,400 miles on the clock and history of a new battery pack in 2021.

Sure, it might need tires, and it does have a hit on its vehicle history report. The seats look remarkably baggy and the steering wheel rather worn for a vehicle with such low mileage, but do you know what? This is a ton of car for less than $15,000.

Alright, so maybe you’re looking for something a little less cosmetically grubby. Well, here’s a 2012 Tesla Model S P85 with the turbine wheels and just 38,000 miles on the clock, sold on Bring A Trailer by a dealership late last year. While this doesn’t qualify for the used electric vehicle tax credit due to the time it was sold, it hammered for $23,000. If prices stay fairly level, chopping four grand off that price would put it under $20,000.

Things get even better when you look beyond the auctions, towards the brace of cheap options on the private market. This 2014 Tesla Model S P85 may have 123,250 miles on the clock, but it’s also listed up for sale on Autotrader for $14,977. Subtract the tax credit, and you end up with $10,977 for a car that, albeit heavily tweaked, is still in production as a flagship EV.

Oh, and if you have a serious penchant for acceleration, going from zero-to-60 mph in less than three seconds on four wheels has never been cheaper. Here’s a 2016 Model S P90D, the dawn of Ludicrous Mode, listed for $23,995 at a dealership in New Jersey. Subtract the $4,000 rebate, and you get a car that goes from zero-to-60 mph in less than three seconds for $19,995. Is that mildly terrifying or what?

Sure, the Tesla Model S might not have the best image of all performance cars out there, its door handles seem to pack up with alarming regularity, its air suspension is indeed air suspension, and aged high-voltage components are lingering question marks, but where else are you getting this blend of comfort, performance, and modernity for this little money? I, for one, welcome our shitbox Tesla future, because I can only begin to imagine the tuning community that can come from this. With the IRS tossing a few bones to buyers of these old EVs, it might just be worth trying one out.

(Photo credits: Cars & Bids, Bring A Trailer, Autotrader Sellers)

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