Car Buying Incentives
It has become normal over the past couple of years for new car shoppers to be paying MSRP and even higher for vehicles. We're slowly starting to see this change with more incentives and more willingness for dealers to negotiate. And it doesn't mean great deals aren't available this April - it always depends on the model, which is why you should really consider more than one vehicle when shopping for a deal. By getting bids from multiple dealers, you increase your chance of finding a "desperate" dealer that is willing to negotiate.
Interest rates are anywhere from 6 - 10% on new cars even if you have good credit, but some manufacturers are still offering 0% financing on some vehicles in April. We've actually seen an uptick in finance deals being offered, which seems to be the main way manufacturers are offering incentives right now. Many have also introduced loyalty bonuses, so if you do have a lease return coming up, this could put an extra $1,000 to $2,000 in your pocket.
My advice right now: If you don't need a new car anytime soon and have the luxury of waiting, then start compiling price bids now but push your purchase out a few months. We should see increases in manufacturer incentives once we start getting back into a more normal pace of production and as new car inventory starts building back up.
The Bay Area Air Quality Management District provides incentives of up to $9,500 for low-income Bay Area residents to retire their qualified operating and registered 1996 or older vehicle and replace it with a hybrid, plug-in hybrid, Battery-Electric, or to get a Clipper Card for public transit. Applicants must have an annual household income less than or equal to 400 percent of the federal poverty level to be eligible. Visit the program website for more information about eligibility requirements.
PWP residential electric customers are eligible for up to a $250 rebate when they purchase or lease a new or used plug-in electric vehicle (EV). Customers are allowed to receive incentives for up to 2 EVs per address every 3 years.
Thinking of buying or leasing an electric vehicle (EV), or already own one? Our Electrify Your Ride EV Rebates can help you save! Get up to a $1,000 rebate for the purchase or lease of a used Battery Electric or Plug-in Hybrid vehicle made on or after January 1, 2023.
Several government entities and local utilities offer electric vehicle and solar incentives for customers, often taking the form of a rebate or a tax credit. Rebates can be claimed at or after purchase, while tax credits are claimed when filing income taxes. Find state and local-specific incentives available in your area.
Depending on your location, state and local utility incentives may be available for electric vehicles and solar systems. Most rebates can either be claimed after purchase or reflected as a reduction in the price of your purchase.
*Note: To be eligible for a rebate, the total vehicle price, including any destination, documentation and order fees, cannot exceed $60,000. The total vehicle price is the final purchase price including added features, equipment and extended warranties. Taxes, tags, rebates, incentives, and trade-ins are not included as part of the total vehicle price.
Learn about the benefits of owning an electric carLearn more about the Drive Clean RebateLearn how much you can save by buying an electric carDownload the Drive Clean Rebate for Electric Cars fact sheet [PDF]Use a calculator to compare EVs to gasoline vehicles
Overall, two-thirds of Americans support providing incentives to increase the use of electric and hybrid vehicles. Democrats and independents who lean to the Democratic Party are much more likely than Republicans and GOP leaners to say they favor incentives to increase the use of electric vehicles (84% to 46%).
Drive Electric Vermont, on behalf of VTrans, administers the statewide incentive program for new PEVs on a first-come, first-served basis. Incentives are available for income-qualifie