Used Tesla Model 3 Inventory Surges Below $25,000 Incentive Price

Tesla’s used inventory site is increasingly populated by Model 3s below $25,000 with lowest prices falling below $20,000, making more eligible for the used EV federal tax credit.

Used electric vehicles priced at $25,000 or below are eligible for a used clean vehicle tax credit up to a maximum credit of $4,000, according to the IRS. That would potentially put many of the used Model 3s priced below $24,000 under $20,000 with the credit. Some examples of used pricing on the inventory website include:

• 2018 Model 3 $20,000: with 63,912 miles, 264 miles of range
• 2020 Model 3 $21,800: with 63,387 miles, 322 miles of range
• 2021 Model 3 $24,600: with 32,181 miles, 262 miles of range
• 2021 Model 3 $24,700: with 52,724 miles, 262 miles of range
• 2022 Model 3 $25,000: with 30,947 miles, 272 miles of range
• Note that prices on Tesla’s used inventory change often, sometimes hourly, so the above prices may change.

However, as of early May 2025, Tesla’s used inventory website is not posting prices –at least not prominently – that include the $4,000 used EV tax credit. By comparison, new Tesla vehicles show the discounted price prominently when the new-vehicle $7,500 federal EV tax credit is applied. A query to Tesla on its used Model 3 inventory website yielded this: “For all qualifying used electric vehicle deliveries, eligible customers may receive a tax credit of up to $4,000, or up to 30% of the purchase price, whichever value is less” – which reflects official IRS statements.

Update: the $4000 is removed from the price of the vehicle at the point of purchase, according to a Tesla salesperson contacted on Sunday. Tesla cites a number of other stipulations including “In order for you to qualify, you must make less than $75,000 if you are a single income filer or less than $150,000 if you file jointly.”

As Tesla’s worldwide sales approaches the 7.5 million mark, used inventory of the Model 3 – first delivered in 2017 – is beginning to age, pushing more older models below $25,000. CarGurus shows the average asking price for a used Model 3 dropping about $3,000 in the last 12 months.