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Used-EV rebate for California drivers looks generous, but qualifying models are limited

It gives first-time buyers or lessees an immediate $3,500 discount on a new EV and $1,750 on a used one.

Ford Mustang Mach-Es at a dealership lot

Photo Credit: iStock

California's MyFirstEV program may sound like a big break for first-time used-EV shoppers, offering $1,750 off an affordable electric vehicle.

However, a closer look found that only 32 qualifying used models were available statewide under $25,000 — and 31 of them were Ford Mustang Mach-Es, Jalopnik reported.

Here's what to know

The state created MyFirstEV after federal EV incentives were rescinded. 

It gives first-time buyers or lessees an immediate $3,500 discount on a new EV and $1,750 on a used one, but as Jalopnik noted, the used car benefit is far narrower in practice.

In Bestest's search, only 32 used EVs in California both satisfied the program's rules and fell under the $25,000 limit that applies to most brands. The list was almost entirely Ford Mustang Mach-Es, with a single Volvo XC40 Recharge rounding it out.

That scarcity starts with the funding model. 

Automakers share the cost with California, and only Ford, Volvo, Lucid, and Rivian pay into the used-vehicle rebate.

Several other brands — Cadillac, Chevrolet, Genesis, Honda, Hyundai, Kia, Lexus, Nissan, Subaru, and Toyota — are involved only on the new-car side. 

Tesla was part of the program at first, but its allocated money ran out after five days.

More background

Eligibility rules shrink the pool further. 

The program accepts only zero-emission used vehicles, so qualifying cars must be battery-electric or fuel-cell models rather than hybrids.

Age and seller restrictions also apply: the vehicle must be at least two years old and sold through the manufacturer's dealer network, unless it comes directly from Rivian or Lucid. 

That excludes private-party transactions, independent used-car lots, and chains like CarMax and Carvana.

On top of that, the car has to be certified pre-owned. While that can give shoppers more peace of mind about the vehicle's condition, it also tends to raise the sticker price — a serious hurdle when the program caps most qualifying used vehicles at $25,000.

Households trying to switch to cleaner transportation on a budget are left with far fewer choices than the broader used-EV market would suggest. Bestest found more than 3,000 used EVs listed in California below $25,000, yet only 32 met the rebate's rules. 

When a state incentive is technically available but hard to use, it can limit access to lower-cost, lower-pollution driving.

What's being done?

One improvement California made was turning the benefit into an up-front price reduction instead of a credit buyers would have to claim later. 

In other words, the savings show up at purchase rather than at tax time.

The program still depends heavily on automaker participation. With only four brands helping fund used-vehicle rebates, shoppers face a very limited inventory even before dealer-network and certified-pre-owned restrictions are factored in.

California-based Lucid and Rivian also have a special exception that lets their used vehicles qualify above the standard $25,000 ceiling. 

But that carve-out offers little relief for budget-conscious EV shoppers, because the lowest-priced qualifying Rivian or Lucid in Bestest's search came in at $34,500.

Where can I learn more?

These stories show how EV incentives and pricing policies affect what drivers can actually afford. They cover other states considering similar rules and broader questions about EV costs.

• Maine regulators floated joining California on EV incentives to cut costs and pollution.

• Persistent cost fears still obscure misunderstood myths about EVs as ownership math improves.

• Falling battery and sticker prices are reshaping what electric vehicles cost for buyers.

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