California is launching a revamped EV rebate program, offering up to $3,500 in instant rebates for new electric vehicles and up to $1,750 for used ones. The state plans to provide these incentives to encourage the adoption of electric vehicles, following the federal government's decision to end its tax credit program last fall.
The new rebate program will apply to new vehicles with a price below $50,000 and used vehicles priced at under $25,000. However, there are some exceptions, such as California-based automakers Lucid and Rivian, which will be exempt from the price cap. This means that even though every Rivian currently available exceeds the $50,000 price limit, the brand will still be eligible for the rebate program.
There are 13 participating automakers in the program, but some notable brands are missing from the list. These include Dodge, Jeep, Mercedes, BMW, Audi, Volkswagen, and Maserati. The reason for their absence is largely due to the price cap, as most of their electric vehicles exceed the $50,000 limit. The only exception is Mercedes, whose CLA 250+ EV starts at $49,400, barely below the price cap.
View Price on AmazonSome companies on the list, such as Honda and Volvo, do not currently offer any qualifying electric vehicles. The Honda Prologue will end production later this year, leaving Honda without any new cars to sell through the program. Volvo's cheapest electric vehicle, the EX40, has a starting MSRP of $56,545, which exceeds the price cap. However, the company has announced plans to release more affordable models in the future.
The good news for Californians is that almost every automaker with a qualifying model is participating in the program. The rebate is a funds-matching program, where $1,750 comes from the automaker itself, and the other $1,750 comes from state matching funds. This made it uncertain how popular the program would be among manufacturers, but it appears that most companies with eligible vehicles are on board.
Fiat is the only company with a sub-$40,000 electric vehicle that is not participating in the program. The Fiat 500e starts at $38,395, and it is unclear why the company has chosen not to participate. Mini, another company with an affordable electric option, the Countryman SE, which starts at $46,550, is also not participating.
The used electric vehicle rebate is still shrouded in mystery, as it is unclear how the program will work. The rebate is ostensibly funded by automaker matching funds, but it is unclear why an automaker would pay for a used vehicle purchase instead of a new one. If the program works as expected, it could lead to some unusual market dynamics, where used electric vehicles from participating manufacturers become more attractive than those from non-participating brands.
Source: insideevs.com
