Green Wave Used Clean Vehicle Tax Credit Program
Jul 1, 2023
Part of Green Wave Electric Vehicles’ mission is to make more electric vehicles more affordable for more people. In order to better achieve this goal, Green Wave is creating an innovative and unique program offered nowhere else for qualifying purchasers that will allow them to use their $4,000 Used EV Tax Credit at point of sale, significantly reducing their loan, monthly payment, and interest expense.
The Inflation Reduction Act of 2022 provided for a Used Clean Vehicle Credit for taxpayers to receive a $4,000 tax credit that is nonrefundable and cannot be carried forward for used electric vehicles with at least a 7 kilowatt hour battery that are purchased for $25,000 or less. Learn more on the IRS website or on the Green Wave article on our website.
Green Wave is offering a limited number of used EV purchasers the ability to pledge this tax credit as part of their down payment when purchasing a qualifying used EV or PHEV from Green Wave. If the purchaser is electing to use Green Wave as their indirect lender for vehicle financing, the purchaser will be able to use the tax credit at time of purchase to reduce their loan amount by up to $4,000, and the purchaser will be required to pay Green Wave the $4,000 when they receive their tax refund no later than April of the following year. This requirement will be fulfilled by the signing by both parties of a non-interest bearing Promissory Note for the amount deferred, up to $4,000. The purchaser will be required to make an additional down payment of 10%, and qualify for a loan from one of our lending partners. More terms and conditions below.
Here is an example of how this program works:
- Purchaser selects a 2017 Chevrolet Volt, with a total price of $18,735.
- Purchaser makes a down payment of cash or trade equity of at least 10% ($1,873.50).
- Purchaser and vehicle qualify for the $4,000 Used Clean Vehicle Credit, and purchaser signs a Promissory Note confirming that they will pay Green Wave $4,000 by April of the following year, presumably when they receive their tax refund. Green Wave accepts this Promissory Note as guarantee of future payment.
- The net financed amount for the purchaser is $18,735 minus $1,873.50 minus $4000 equals $12,861.50.
- The remaining $4,000 amount due on the purchase is a non-interest bearing loan that matures by April 20th of the following year.
Terms and Conditions
In order for Green Wave to offer $4,000 as a deferred down payment on a vehicle purchase, the following terms and conditions apply:
The vehicle must meet the requirements of the IRS Used Clean Vehicle Tax Credit program, as determined by Green Wave.
The purchaser must qualify for the IRS Used Clean Vehicle Tax Credit program, which is an income-limited, non-refundable tax credit that cannot be carried forward. To determine this, the Purchaser must provide Green Wave with:
- The previous year’s Tax Return document from the IRS, AND
- A year-to-date pay stub that shows Federal income tax withholdings and income that indicate BOTH taxes paid with tax liability that would qualify for a refund AND income that would fall within the IRS limitations for purposes of the Clean Vehicle Tax Credit.
The purpose of this program is to help purchasers reduce their monthly car loan payment by using the Tax Credit as a down payment on a financing deal, and NOT as a means to reduce cash outlay at time of purchase for a cash deal. As such, this program is only available to people who are financing the purchase of the vehicle, and not cash purchasers.
- The purchaser must complete a credit application with Green Wave, and must have a current credit score of at least 720 based on the Experian FICO V8 Classic score model.
- If the purchaser is financing with a Green Wave indirect lending partner, they are able to take possession of the vehicle once they have signed all the loan contracts and required documents provided by Green Wave.
- If the purchaser is using another financing source, the purchaser cannot take possession of the car until certified funds have been received by Green Wave.
A vehicle is only eligible for the deferred down payment program from Green Wave if the agreed-upon price for the vehicle is Green Wave’s asking price as listed on the Green Wave website at time of purchase. This offer cannot be combined with any other vehicle specials, incentives, or promotions including promotions on extended service contracts, home charging systems, or other products and services offered by Green Wave.
Green Wave reserves the right to accept a fraction of the full $4,000 amount as part of this program at Green Wave’s sole discretion.
Only purchasers with legal residence in New Hampshire, Massachusetts, Maine, or Vermont are eligible for this promotion.
This program is subject to the terms and conditions as described in the Promissory Note, which must be signed by Purchasers at time of purchase.
Green Wave reserves the right to limit and/or cancel this program at any time for any reason, at its sole discretion.