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 EVs, plug-in hybrids (PHEVs) are now eligible for up to $4000 even as used vehicles. And here again, the money can be applied to the purchase price or used as a down payment, rather than lowering your income-tax bill come April 15.
For shoppers looking to take advantage of this federal largesse, we've selected three recommended PHEVs at each of three different price points. (All of which would net buyers the full amount.)
To satisfy the rules, a used plug-in hybrid must be:
2022 model year or older;
priced below the $25,000 cap;
sold by a dealership, not a private seller.
The ones we found are all clean-title, no-accident cars listed nationally in our Car Buying Service. There are additional caveats that could reduce or forfeit this credit, so brush up on our tax credit guide before buying. (And check out our separate electric-vehicle story, which lists those that give you a tax break.)
$25,000
2016–2018 BMW X5 xDrive40e
SHOP FOR USED X5
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. You can find well-equipped examples with 40,000 to 80,000 miles.
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 older 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. You can grab one with under 30,000 miles and easily run it up to to 230,000.
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, all-wheel drive, and you'll still have three years of factory warranty coverage (which runs to five years and 60,000 miles). You can find two-year-old examples with 25,000 to 50,000 miles for $25K or less. Remember when searching: Mitsubishi redesigned the regular Outlander for 2022 but the 2022 Outlander PHEV was the previous-gen model.
$20,000
