Yahoo Autos Best Used Plug-In Hybrids to Snag the $4000 Federal Tax Credit
Plug-in hybrids are perfect for buyers who want to take advantage of the federal tax credit but are hesitant to take the full leap into an EV. As with used EVs, used plug-in hybrids (PHEVs) are eligible for up to $4000 if purchased at a dealer. Instead of waiting until tax time, customers can now knock this sum off the price of a used PHEV at the time of purchase.
To satisfy the rules, a used plug-in hybrid must be:
Priced no more than $25,000
Must be purchased from a licensed dealer; no private sales
Must be at least two model years old
Cannot be the original owner
Can claim only one used vehicle credit every three years
Battery capacity must be at least 7.0 kWh and capable of being recharged from external power source
We used Car and Driver's "What's My Car Worth"tool to determine the values of 11 PHEV models, keeping the prices between $15,000 and $25,000 to max out the value of this government incentive. We searched for cars with clean titles nationwide. Mileage on most of our PHEV picks vary from as little as 20,000 to 50,000 miles. (There are caveats that could result in a reduction or forfeiture of the used EV tax credit, so brush up on our tax credit guide before buying.)
Only licensed dealers approved by the IRS can offer the PHEV credit, and that includes national used-car dealers like Carvana, which can handle the majority of the transaction online. But there is a loophole. Dealer brokers like KeySavvy, which collect payments and verify titles, process the PHEV credit in a private sale for a fee.
2016–2018 BMW X5 xDrive40e
BMW sold the last-gen X5 with six powertrains, including a plug-in hybrid and a diesel. The plug-in hybrid carried the 40e designation and used a 2.0-liter turbo-four (whereas the current-gen, 2021 and later 45e and 50e PHEVs use a turbocharged inline-six). The 308 total system horsepower was enough to pull this SUV to 60 mph in 6.2 seconds, 0.2 second behind the regular, gasoline-powered six. This generation is attractive as ever and has an airy, roomy cabin. Its 14-mile EV range and overall fuel efficiency are piddling, but the hybrid aspect doesn't mar the X5's driving experience.
2017–2021 Toyota Prius Prime
Before the Prius Prime had a big glow-up with its 2023 redesign, Toyota's plug-in-hybrid Prius was mostly known for its wacky styling and miserly fuel consumption. The previous-gen Prius Prime had an EPA-estimated 25 miles of EV range, and when the battery depletes, it'll still deliver more than 50 mpg on gas. Recharging takes 5.5 hours on a standard 120-volt household outlet or about two hours on a 240-volt source. This Prime is slow, and the instrument cluster is oddly placed at the center of the dash rather than in front of the driver. But ultimate efficiency and reliability are the draw here.
2022 Mitsubishi Outlander PHEV
Mitsubishi was first to market with a plug-in-hybrid SUV, though it wasn't until 2018 that the Outlander PHEV landed on our shores. The Outlander is capable of fast-charging on a CHAdeMO port and was EPA rated at 24 miles of range. Buy one of these, and you'll also get lots of space and all-wheel drive, and you'll still have three years of factory warranty coverage (which runs to five years and 60,000 miles). Remember when searching: Mitsubishi redesigned the regular Outlander for 2022 but the 2022 Outlander PHEV was the previous-gen model.
SHOP FOR A USED ELR
General Motors probably would rather forget it made this car and the commercial that didn't sell it. Cadillac's version of the Chevy Volt wasn't any faster and was only mildly more luxurious. From a starting price of $75,000, the ELR got a $10K price cut in its final 2016 model year that couldn't save it. However, the Volt was a very good plug-in, and now that the ELR has lost 75 percent of its value, it's a great time to revisit this PHEV coupe. Who makes PHEV coupes anymore? And this was the height of the brand's Art & Science design. The wise move is to snag a 2016 model with its improved suspension and brakes as well as increased power and torque.
2017–2018 BMW 330e iPerformance
SHOP FOR A USED 330e
The previous-generation 3-series introduced the first plug-in-hybrid BMW 330e. The trick may be finding one. The 330e was not popular when new, as its $5350 upcharge bought a 14-mile EV range, a smaller trunk, and no all-wheel drive. The added weight doesn't diminish the 3's lively handling, however, and there's an eight-speed automatic shifting gears—sometimes with only the electric motor running, which is a strange but satisfying feeling. The iPerformance moniker is misleading. With the gas engine borrowed from the 320i, the 330e is sprightly but definitely not fast.
2018–2019 Honda Clarity Plug-In Hybrid
Sold from 2018 to 2021, the futuristic Honda Clarity is already largely forgotten. This gas-electric four-door hatchback—which was also available as a full electric or with hydrogen power—delivers an EPA-estimated 48 miles of range. With 212 horsepower, the Clarity was quicker than a Prius Prime and still achieved 42 mpg when running on its gas engine once the battery was depleted.
2016–2018 Audi A3 Sportback e-tron
SHOP FOR A USED A3 SPORTBACK E-TRON
Whereas Audi once pitched efficiency-minded buyers its TDI diesels, the VW diesel emissions scandal drove that business into a brick wall. The brand was forced to pivot to electrification, and an early effort was the A3 Sportback e-tron, which was offered solely in four-door-hatchback form. A 1.4-liter turbo four and an 8.8-kWh battery were good for respectable acceleration (6.5 seconds to 60 mph in our testing) and a typical-for-the-time EV range of 17 miles. Steep pricing limited the appeal, however (our 2016 test car as tested was $46,100). Depreciation on a richly priced German car is sweet for used-car shoppers.
2014–2018 Chevrolet Volt
The Volt, which debuted for the 2011 model year, was the first plug-in hybrid and the best in range, performance, and technology. At this price, you can find low-mileage first-gen cars (25-to-38-mile EV range) or higher-mileage second-gen cars (53-mile EV range). Either Volt is fun to drive and easy to recharge on a household outlet, since the battery is small compared to the huge battery packs in today's electric cars.
The final-generation Ford Fusion always sold well and looked great. Many compared the front end to an Aston Martin. Really. Like GM, Ford was well ahead in the PHEV market, and this mid-size sedan delivered 20 miles of electric range and nearly 40 mpg when running on gas. The final model years (2017–2019) have higher EPA ratings. A tiny, eight-cubic-foot trunk is a negative, and we weren't overly fond of the soft suspension and light steering. Otherwise, this is a well-executed sedan that Ford should still be selling in this country.
2017–2022 Chrysler Pacifica Hybrid
SHOP FOR A USED PACIFICA HYBRID
The Pacifica was and still is the only plug-in-hybrid minivan. Stay away from early model years, as our 2018 long-term tester required a battery replacement and suffered too many maladies to list here. Later models are the delight, as evidenced by Ezra Dyer's personal 2020 model with flaming red leather seats. A facelift for 2021 brought a new front end and updated infotainment. We matched the EPA's 33-mile all-electric range and hit 31 mpg on our highway test, which equals an impressive 540 miles per tank. For transparent utility and space, there's no better PHEV.
2018–2022 Kia Niro Plug-In Hybrid
SHOP FOR A USED NIRO PLUG-IN HYBRID
The Niro is a subcompact hatch with three powertrains (hybrid, plug-in-hybrid, and electric). There's nothing terribly stimulating, inside or out, and the performance is plain. But for affordable plug-in motoring, especially in cramped cities, a Niro PHEV is a great car with low maintenance. If you want the current-gen Niro for under $25,000, wait until the 2025 model hits showrooms and then search for used 2023 models (the first year of the current-gen car). The updated style and tech may be worth the wait.
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