Switching to an electric vehicle (EV) can be more accessible than you think, especially if you’re looking to trade in your older, gasoline-powered car. Assistance programs are available to help make this transition smoother, offering rebates when you exchange your eligible gas vehicle for a new or used EV. This initiative not only puts you behind the wheel of a more environmentally friendly car but also provides financial support to ease the process.
Vehicle Eligibility Requirements for Trade-In
To qualify for an EV rebate by trading in your current vehicle, there are specific criteria your gas or diesel car must meet. These requirements ensure that the program targets older, higher-emission vehicles, maximizing the environmental benefits of transitioning to EVs. Here’s what makes your vehicle eligible for a trade-in:
- Operational Status: Your vehicle must be in working condition, meaning it can be driven.
- Age Criteria: The model year must be 12 years or older. For example, for a 2025 application, models from 2013 or earlier would qualify. Alternatively, vehicles that have failed a recent emissions test in Colorado are also eligible, regardless of age.
- Colorado Title and Ownership: The vehicle must be currently titled in Colorado, and the name on the title must match the applicant’s name. The title should be solely in the applicant’s name.
- Clear Title Status: The vehicle title must be free of any liens, indicating that there are no outstanding loans on the car.
- Current Registration: The vehicle must be currently registered with the Colorado Department of Motor Vehicles under the applicant’s name.
- Acceptable Title Types: A range of title types are accepted, including clear, bonded, reconstructed, affidavit, rebuilt, water damage, or odometer rollback titles. However, vehicles with salvage, junk, or dismantled titles are not eligible for trade-in under this program.
It’s important to note that certain vehicle types are not eligible for exchange through this program at this time. These exclusions include electric vehicles, hybrid vehicles, motorcycles, recreational vehicles (RVs), campers, and boats. The program is specifically designed to replace older gasoline and diesel vehicles with newer electric models.
Eligible Electric Vehicles for Rebates
The rebates received from trading in your eligible gas car can be used towards the purchase or lease of specific types of electric vehicles. This program supports the adoption of both fully electric and plug-in hybrid models, giving you choices to fit your driving needs:
- Battery Electric Vehicles (BEVs): These are fully electric vehicles powered solely by batteries and require charging from an external source. BEVs produce zero tailpipe emissions and offer a completely electric driving experience.
- Plug-in Hybrid Electric Vehicles (PHEVs): PHEVs combine a battery and an electric motor with a traditional gasoline engine. They offer an electric driving range, typically between 20 to 50 miles on a single charge, before switching to gasoline. This provides flexibility for both daily commutes and longer trips.
Both new and used BEVs and PHEVs are eligible for purchase or lease using the rebate, expanding options for participants.
Rebate Amounts and How to Use Them
Eligible residents who trade in their gas vehicles can receive significant rebates for purchasing or leasing a qualifying electric vehicle. These rebates help to reduce the upfront cost of switching to an EV, making it a more financially viable option. The rebate amounts are structured as follows:
- New Electric Vehicle (BEV or PHEV): A rebate of $6,000 is available for the purchase or lease of a new electric vehicle.
- Used Electric Vehicle (BEV or PHEV): A rebate of $4,000 can be applied to the purchase or lease of a used electric vehicle.
To be eligible for the new EV rebate, the vehicle must have a manufacturer’s suggested retail price (MSRP) of $80,000 or less. For used EVs, the final negotiated price must be $50,000 or less, excluding destination charges, optional dealer add-ons, taxes, and fees. Lease terms must also be a minimum of two years to qualify for the rebate.
When utilizing the rebate, the title for the EV must include the name of the rebate recipient. Participants are also allowed to finance the remaining vehicle cost through a loan. Importantly, this program can often be combined with other state and federal incentives, potentially increasing your savings. However, it’s recommended to check with other EV rebate programs to confirm whether combining incentives is permitted, as some programs may have restrictions. Regardless of other incentives, the program ensures that the total rebate amount does not exceed the final purchase or lease price of the electric vehicle after all other discounts are applied.
