Wayne Michaud

For many of us, transportation is an important part of our lives. In more rural areas, transportation choices are usually more limited, leaving us with the most popular choice: the automobile. They get us to where we want to go, but doing so can be an imperfect process, such as impacts on the environment, and on our wallets. Addressing these issues, one of the best choices within auto travel that we have today is the purchase of a used plug-in vehicle – that’s an all-electric (EV) and a plug-in hybrid (PHEV). We will first look at an overview of these vehicles and then dive into going forward with obtaining a used one.

Plug-in vehicles are proliferating in Vermont. According to Drive Electric Vermont (DEV), over ten years they have grown from 600 to 13,000, with a more than 40% gain in the last year alone. Promotional efforts by DEV, VTrans, regional utilities, and others, have led the way in making this happen to meet the state’s goals of 27,000 plug-in vehicle registrations by 2025, and 126,000 by 2030.

Plug-in vehicle benefits are plentiful:

• Significant money savings in fuel, maintenance and repair costs compared to traditional internal combustion engine (ICE) vehicles

• Reductions in carbon emissions and fossil fuel use and improved air quality

• EVs use half the energy of ICE vehicles and are cleaner regardless of the energy source

• EV motors are naturally loaded with torque, making for quick but clean and quiet acceleration

• New and used plug-in purchase and lease incentives and credits – state and federal

• Vermont’s growing public charging station infrastructure that has reached 450 locations; most are Level 2 chargers along with about 60 DC (direct current) fast chargers (Level 3)

• EV batteries are generally warranted for eight years/100,000 miles; a comprehensive study shows that battery replacement rates are 13% for 2015 and older models and 1% for 2016 and newer

• PHEVs run mostly on electric power, but range is extended with a gas engine to more easily enable longer commutes and trips

Downsides of plug-ins vs ICE vehicles:

• In cold weather states, EV range can be compromised by up to 50% in the most frigid temperatures

• EV carbon emissions in the manufacturing process are higher than in ICE vehicles (but with no tailpipe emissions, EVs have lower lifecycle emissions)

Now, the nitty-gritty on the affordability of used plug-in vehicles

First, in spring 2024, according to the online automotive search engine, iSeeCars, the price of used EVs have dropped below used ICE vehicles for the first time!

Among Vermont’s five state incentives (which can be combined, pending qualifications!), two are used-vehicle eligible. Vermont is one of eleven U.S. states offering statewide used plug-in vehicle incentives

1. MileageSmart. From 2020 through the fall of 2024, the State of Vermont piloted with Capstone Community Action on this innovative program which helped more than 1,278 moderate to low-income Vermonters purchase high miles-per-gallon vehicles from local auto dealers. This pilot program has surpassed all expectations, with demand for incentives far surpassing initial projections.

Since October 2020, MileageSmart partnered with Vermont Auto Dealers to make energy-efficient vehicles more accessible to low-income families. Together, we achieved remarkable results, helping families invest in cleaner, more fuel-efficient cars, including:

• 447 Electric Vehicles
• 272 Plug-in Hybrids
• 559 Hybrids

The total value of these vehicles exceeds $28.5 million and has circulated that sum through the local economy. Participants have received average incentives of nearly $4,500 per vehicle. This initiative not only reduced transportation costs for participants but also supported Vermont’s goals for a cleaner environment and reduced carbon emissions.

Under the pilot, Customers were required to work with a Vermont dealership. The incentive offered moderate to low-income buyers 25% of the vehicle’s initial price, capped at $2,500, for used EVs and PHEVs (70 models eligible). SNAP benefit recipients, however, received $5,000 for these vehicles, as well as $2,500 for conventional hybrids. Further, an additional incentive was available to Vermonters whose cars had been damaged in the 2024 flooding events, allowing the $2,500 cap to be doubled to $5,000.

Note that used plug-in vehicles, especially all-electrics, have significantly less odometer miles than comparable ICE vehicles and, besides using little to no fuel, have lower maintenance costs (EVs have no oil changes or tune-ups!). On the other hand, used EV battery range is half or less of new EVs, plus a depletion factor of 10% or more. With the exception of PHEVs, they are not intended for longer commutes.

A couple of plausible examples of used plug-in models and costs under this program:

• Average retail cost of a 2014 Chevy Volt PHEV (35 miles of range) is $14,000 before the up to $5,000 incentive
• Average retail cost of a 2017 Chevy Bolt EV (238 miles of range) is $16,000 before the up to $5,000 incentive

Currently, there is no available funding for continuation of the MileageSmart program but the program did an excellent job of demonstrating that Vermonters of all economic means are eager to positively contribute to helping implement climate solutions when given the tools to do so.

2. Replace Your Ride: The state is using the Center for Sustainable Energy (CSE) to administer this program. It offers a limited-time incentive to consumers for the scrapping of their old ICE vehicle with a new or used EV or PHEV. Qualifications include, but are not limited to, the replacement vehicle being at least ten years old from the current year, registered, operable, and 10,000 lbs. or less; PHEV/EV replacements do not qualify. The incentive amount is $2,500 or $5,000, depending on the applicant’s income. Under the program, consumers are required to work with a participating dealership or “scrapping partner.” This incentive may be combined with MileageSmart (and/or other state incentives)! Note: certain qualifications are waived for vehicles damaged in the 2024 flooding events. Inquiries related to this program can be directed to CSE).

Six Vermont electric utilities also offer used plug-in vehicle incentives for the areas they serve, ranging from $250 to $1,500. Visit the DEV incentives webpage for details.

Also available is the federal tax credit under the Inflation Reduction Act for EVs and PHEVs: $7,500 new; $4,000 used. Note that eligibility details can make it challenging to take full advantage.

Statewide Used Plug-In Vehicle Incentives for Other States in the Region

Maine: The Efficiency Maine program offers a used EV or PHEV incentive of $2,500 to income-qualified households

New Hampshire: The New Hampshire Electric Co-op (NHEC) ended incentives for new and used EVs/PHEVs December 31, 2023. Incentives are currently limited to residential and commercial charging stations.

New York: The New York State Energy Research & Development Authority (NYSERDA) currently offers incentives for new plug-in vehicles only.

NOTE: All U.S. states offer the federal tax credit of $4,000 for a used EV or PHEV.

Refer to the incentive section of this issue on pages 18 and 19 for more details.

Wayne Michaud is Executive Director of Green Driving America Inc., a non-profit that advocates for and educates on transportation efficiency and clean transportation.

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