Sales of used electric vehicles have started out strong in 2025, thanks to better affordability, more models to choose from, and used EV tax credits.

The federal EV tax credit, worth up to $7,500, saw big changes in 2024. For buyers, the credit typically became easier to get. But if their dealers skipped a step, it was a different story.

Electric vehicle buyers are facing hurdles as the IRS rejects tax returns claiming the expanded EV tax credit, due to dealerships failing to file a crucial "time of sale" report.