'This Is Going To Be How You Buy A Tesla For Cheap': Man Saves Thousands With Tax Credit
“That didn’t come out of my pocket."
Don’t scroll past that used Tesla listing just yet. A TikTok creator says you might be able to cut the sticker price by thousands using a tax credit available at the dealership. Here's how he got the keys for as little as $16,000.
New Tesla owner Brant (@mindofbrant) is all smiles in his discounted ride in the clip, where he shares the steps he took to sniff out a giant deal. “This is going to be how you buy a Tesla for cheap,” he promises in the viral clip, telling Tesla execs, “You owe me a check for putting people on.”
How It Works: The Used EV Tax Credit Advantage
At the heart of the discount is a $4,000 federal tax credit introduced under the 2022 Inflation Reduction Act aimed at making used electric vehicles more accessible to everyday buyers. While many shoppers assume tax credits can only be claimed later during tax season, Brant found a dealer who applied the incentive upfront, slashing the purchase price without needing a traditional down payment.
Here’s the key: Some IRS-registered dealers are now offering point-of-sale application of both new and used EV tax credits, as outlined by the IRS in Form 8936 instructions. That means if you meet the income and vehicle qualifications, you could drive away without spending the full sticker price out of pocket.
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Brant says he negotiated his used 2022 Model 3 down to $20,000, and the dealership applied the $4,000 credit as a down payment, effectively lowering his upfront cost to $16,000. “That didn’t come out of my pocket,” he says in the clip. “They put the tax credit on it.”
If you’re hunting for a similar deal, Brant outlines three key filters to apply when searching for used Teslas:
- Look for dealer listings, not private sellers. Only IRS-registered dealers can apply the used EV credit at the point of sale.
- Target one-owner vehicles, which often meet the condition requirements for the credit.
- Confirm the dealer handles in-house tax credit processing. Not all do, and even those who qualify might not advertise it.
Used EVs must meet several eligibility conditions:
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- Be at least two years old
- Cost $25,000 or less
- Be purchased from a qualified dealer
- Weigh less than 14,000 pounds
- Be for personal use, not resale
- Include a battery capacity of at least 7 kWh
Buyers must also meet income caps:
- $75,000 for individuals
- $112,500 for heads of household
- $150,000 for joint filers
A list of participating dealers that have registered with the IRS is available, though it may not be fully comprehensive. Experts suggest confirming participation directly with the dealership before negotiating terms.
Costs and Caveats
While Brant’s deal started at $16,000, he notes that fees and taxes brought the final cost closer to $20,000. That still puts it well below the average price for a used Tesla, which hovers between $25,000 and $35,000 depending on age, trim, and condition.
It’s also worth noting that the $4,000 used EV credit can only be used once per vehicle and once every three years per buyer, so there’s no double-dipping.
Buyers should also be aware that Tesla’s battery warranty transfer policies may differ between private sales and certified pre-owned vehicles. Tesla does not currently certify third-party used vehicles through its own CPO program.
For those leaning toward new inventory, Brant flags another option: a $7,500 new EV tax credit, also offered under the Inflation Reduction Act. As of mid-2025, the Tesla Model 3 RWD and Model Y AWD configurations are eligible for the full credit when purchased new and delivered before Dec. 31, according to Tesla’s official incentive page.
One major reason for the urgency? Tesla’s current $7,500 incentive on select new inventory is set to expire on Sept. 30, according to the company’s limited-time offer page. While that’s separate from the federal tax credit, the combined savings window may soon narrow—making the next few weeks critical for bargain hunters weighing new versus used EV options.
This credit can also be applied at the point of sale, provided the buyer and vehicle meet eligibility rules:
- Price caps of $55,000 for sedans and $80,000 for SUVs/trucks
- Income caps of $150K (individual), $225K (head of household), and $300K (joint filers)
- Battery and final assembly requirements, which vary based on sourcing
For the latest list of eligible vehicles and configurations, the IRS maintains an updated database.
Used Tesla prices have fallen dramatically in the past two years, due in part to rising inventory and price cuts on new models. In April 2024, Tesla slashed prices across its Model 3 and Model Y lineups, pushing many lightly used models below the $25,000 eligibility threshold for the federal credit. That makes now a rare window where federal incentives and resale dynamics intersect for major savings.
Analysts at Cox Automotive have noted increased dealer participation in EV tax credit programs, particularly for used models, though availability varies by state and region.
InsideEVs reached out to Brant via direct message.
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