5 Electric Vehicles That Are Super Affordable With The Federal EV Tax Credit

Looking for an affordable electric car (EV) can be challenging in today’s market. However, the government is offering incentives to promote the sales of electric vehicles and reduce emissions. If you plan to purchase a new electric vehicle in 2024, keep an eye out for specific car models that come with discounts of up to $7,500.

To qualify for the Federal Tax Credit (FTC), you must purchase a car for your own use and your gross income must not exceed $300,000 for married couples, $225,000 for heads of households, and $150,000 for all other filers. The discount covers electric vehicles placed in service on or after April 18, 2023. The vehicle must meet new critical mineral and battery component requirements, and the discount offers $3,750 for each criterion the vehicle meets. Furthermore, the vehicle must be a specific model and its price cannot exceed the MSRP of $55,000. You must file a form to receive the credit.

This list consists of cars that are more affordable due to the credit you can receive. These electric vehicles are considered super cheap because EVs are usually more expensive than the average internal combustion engine variants.

In order to give you the most up-to-date and accurate information possible, the data used to compile this article was sourced from various manufacturer websites and other authoritative sources, including Nissan, Tesla, Volkswagen, Honda, and IRS. The Models below have been ranked based on their starting MSRP.

1 Nissan Leaf S – $24,390

Starting MSRP Before $3,750 Federal Tax Credits: $28,140

The Nissan Leaf is a small electric vehicle that was first introduced in 2010. This car has undergone significant changes in the past 14 years, including an increase in horsepower and range. However, if you’re looking for speed, the Leaf may not be the best option compared to other cars in its class. Nevertheless, it is a safe and affordable option for those who prioritize safety over speed. The Leaf has received a 5-star safety rating from the NHTSA, making it a reliable option for both drivers and passengers.

Performance Specifications

(Data was collected from Nissan)

The standard Leaf is priced at only $28,140, and you can get a $3,750 discount because of the FTC. Despite its low price, the Leaf comes equipped with various impressive technologies, including NissanConnect, one-pedal drive, etc.

Pros

• Super Cheap
• Versatile Cargo Room
• Reliability Positives

Cons

• Slower Charging
• Lacking Power
• Subjective, But Looks Dull

2 Volkswagen ID.4 – $32,325

Starting MSRP Before $7,500 Federal Tax Credits: $39,735

The ID.4 is a mid-sized SUV from Volkswagen’s new range of vehicles that aims to promote a future without the use of internal combustion engines. However, some may find it a little ordinary due to the lack of any outstanding features that make it stand out from other new EV vehicles that are currently available.

The ID.4 offers remote features, such as the ability to charge the vehicle using a remote, which still requires to be plugged in, and a remote climate control feature that allows you to set the cabin temperature to your liking before entering the car. These features are something that you probably would expect from a new EV car nowadays. Additionally, there are cheaper versions available, but with the $7,500 FTC off, you can grab a good deal on this car.

Performance Specifications

(Data was collected from Volkswagen)

Volkswagen claims it has an Advanced Keyless Access system that can detect the key from up to 1.5 meters away. The ID.4 is equipped with IQ.Drive, an advanced driver assistance system that keeps an eye on traffic and warns you of potential risks.

Pros

• Long Battery Warranty
• Overall Feel
• Great NHTSA Safety Rating

Cons

• Range Could Be Better
• Other Trims Too Expensive
• Lacking Power

3 Tesla Model Y – $35,490

Starting MSRP Before $7,500 Federal Tax Credits: $42,990

The Tesla Model Y is a compact SUV that is slightly larger and more expensive than its sedan counterpart. Thanks to its impressive features, the Model Y has become the top-selling electric vehicle in the U.S. in 2023. With the FTC, you can now benefit from even more discounts on this popular model.

Inside the cabin, the Model Y is slightly different from other Tesla models due to its height. It offers an elevated seated position and a low dash, which makes for a unique driving experience. The Model Y also provides a spacious cargo area of 76 cubic feet, making it a practical choice for families or those who need to transport larger items. However, due to the added weight and space, it has slightly less range and a slower 0-60 time than the Model 3.

Performance Specifications

(Data was collected from Tesla)

The Model Y is equipped with Tesla’s signature technology, including autopilot and over-the-air updates. With over 50,000 Tesla Superchargers globally, you can take your Model Y on road trips without worrying about running out of charge.

In addition to its impressive features, the Model Y also shares some cool features with the Model 3. For instance, it has Dog Mode, a feature that keeps the air flowing inside the cabin to ensure your pet’s safety and comfort while parked. You can also monitor your pet through the interior cabin. Furthermore, it features Sentry Mode, which uses exterior cameras to detect suspicious activity and sound the alarm while flashing the lights on the vehicle to deter it. However, it’s not clear what Tesla considers as suspicious activity.

Pros

• Cheaper Through FTC
• Tesla Technology
• Fast Charging

Cons

• Less Range Than It’s Tesla Rival
• Slower Than The Model 3
• Build Quality Compared To Other Vehicles

4 Honda Prologue – $39,900

Starting MSRP Before $7,500 Federal Tax Credits: $47,400

Honda has introduced a new addition to their lineup with the 2024 Honda Prologue. This all-electric SUV features a slim and sleek design, similar to a slightly smaller version of the CR-V. The Prologue comes with both home charging and DC fast-charging, although the latter is quite slow compared to other vehicles in its class. It offers decent performance, with the option of an AWD version that comes at a higher price point.

Performance Specifications

(Data was collected from Honda)

Safety technology is a key feature of the Prologue, with Honda Sensing ensuring your safety on the road by surveying the area as you drive. Inside the cabin, you’ll find an 11-inch display that supports both Apple CarPlay and Android Auto, along with a BOSE surround system featuring 12 speakers. The standard version of the car comes with FWD and more range, making it the smarter choice. While the Prologue has all the standard safety technology, such as auto emergency brake, lane departure, lane assist, and adaptive cruise control, there are no standout features in this regard.

The Prologue car comes with warranties that cover electric components for 8 years or 100,000 miles, which is a good indication of the manufacturer’s confidence in their product. Unfortunately, the Prologue is not yet available for purchase, but it is expected to be released later this year. This car is designed with safety as a top priority, and with its slightly smaller SUV build, it can be a comfortable vehicle for relaxation.

Pros

• Google Infotainment Assistant
• Wireless Phone Charger
• Brilliant Range

Cons

• Slower Charging Times
• Lacking Performance Compared To Its Rivals

5 Tesla Model 3 – $45,490

Starting MSRP Before $7,500 Federal Tax Credits: $52,990

The Tesla Model 3 is a highly sought-after sedan that is available at a reasonable price. It is equipped with impressive speed and range in its standard version, and even more so in the Performance trim. While the higher trims come with better specs, they also come at a higher cost. The Model 3 is one of the most popular cars to buy, and Tesla’s popularity is ever-growing.

The 2024 Tesla Model 3 is offered in three trims, but only the Performance trim is eligible for federal tax credits. It makes 510 horses and can sprint to 60 mph from rest in just 2.9 seconds. Tesla also has one of the most extensive charging networks in the industry, which ensures that drivers never have to worry about running out of power. Additionally, Tesla has one of the fastest charging capabilities, allowing you to charge up to 175 miles in just 15 minutes.

Performance Specifications

(Data was collected from Tesla)

It comes with new wheel options, and is loaded with the latest integrated technology. The car features a 15.4-inch front touchscreen and a nine-inch rear touchscreen. Passengers can use the rear display to enjoy entertainment during long drives, such as listening to music, watching movies, and customizing car settings from the display.

Tesla’s Cabin Overheat Protection is another cool feature that prevents the cabin from getting too hot during warm weather, keeping surfaces inside safe to touch. You can activate this feature via the phone app and adjust the climate control settings whenever you want. Overall, the Model 3 is one of the best EVs in its price range, offering better specifications and performance than most of its competitors at a great price, making it an excellent value.

Pros

• Impressive Performance At This Price Point
• Fast Charging Capabilities

Cons

• Concerns For Build-Quality
• Only The Top-trim Is Eligible For FTCs