Switching to an electric vehicle (EV) can be more accessible than you think, especially with programs designed to help Colorado residents trade in their older, less efficient vehicles. Colorado’s Car Replacement Program aims to get older gasoline and diesel cars off the road and encourage the adoption of cleaner electric vehicles by offering significant rebates. This initiative makes going electric a more affordable option for many, contributing to a greener environment and reduced emissions. But what kind of vehicles qualify for this car replacement program, and what EVs can you get with the rebates? Let’s break down the eligibility requirements.
Vehicle Eligibility for the Trade-In Program
To participate in Colorado’s car replacement program and qualify for an EV rebate, your current vehicle must meet specific criteria. The program targets older, higher-emitting vehicles, so here’s what makes your car eligible for trade-in:
- Operational Condition: Your vehicle must be in working order and powered by gasoline or diesel.
- Model Year Requirement: The vehicle’s model year must be 12 years old or older. For example, for a 2025 program application, model year 2013 or older vehicles would qualify. Alternatively, vehicles that fail a Colorado emissions test are also eligible regardless of model year.
- Colorado Title and Registration: The vehicle must be currently titled and registered in Colorado under the applicant’s name. The title must be solely in the applicant’s name.
- Clear Title Status: The vehicle title must be free of any liens, meaning there should be no outstanding loans on the vehicle.
- Acceptable Title Types: The program accepts various title types, including clear, bonded, reconstructed, affidavit, rebuilt, water damage, or odometer rollback titles. However, vehicles with salvage, junk, or dismantled titles are not eligible for the car replacement program.
It’s important to note that certain vehicle types are not eligible for trade-in under this program. These include electric vehicles, hybrid vehicles, motorcycles, recreational vehicles (RVs), campers, and boats. The focus is specifically on replacing older gasoline or diesel vehicles with new or used EVs.
Electric Vehicle Rebates and Eligible EV Types
If your vehicle qualifies for the car replacement program, you can receive a rebate towards the purchase or lease of a new or used electric vehicle. The program supports the adoption of two main types of electric vehicles:
- Battery Electric Vehicles (BEVs): These are fully electric vehicles powered solely by batteries and require charging.
- Plug-in Hybrid Electric Vehicles (PHEVs): PHEVs combine a battery (offering an average electric range of 20-50 miles) with a traditional gasoline engine, providing both electric and gasoline driving capabilities.
Eligible Colorado residents can receive the following rebate amounts when they trade in their qualifying vehicle and purchase or lease an EV (leases must be for a minimum of two years):
- New Electric Vehicle (BEV or PHEV): $6,000 rebate
- Used Electric Vehicle (BEV or PHEV): $4,000 rebate
To ensure affordability and accessibility, there are price limits on the EVs eligible for rebates. New electric vehicles must have a manufacturer’s suggested retail price (MSRP) of $80,000 or less. Used electric vehicles must have a final negotiated price of $50,000 or less (excluding destination charges, optional dealer-added items, taxes, and fees). The title of the purchased or leased EV must include the name of the car replacement program participant.
Combining Rebates and Incentives
Colorado’s car replacement program offers the advantage of being combinable with other state and federal incentives. This means participants can potentially maximize their savings by stacking the car replacement program rebate with available state and federal tax credits and other EV rebates. However, it’s crucial to verify with other EV rebate programs, as some may have restrictions on combining their incentives with the car replacement program rebate or other incentives. It’s important to remember that the car replacement program rebate cannot exceed the remaining purchase or lease price of the EV after all other rebates, tax credits, or discounts have been applied.
By understanding the vehicle eligibility and rebate structure of Colorado’s car replacement program, residents can make informed decisions about trading in their older vehicles and transitioning to cleaner, more efficient electric vehicles. This program represents a significant step towards promoting EV adoption and improving air quality in Colorado.
