PYMNTS MonitorEdge May 2024

Carvana Adds New Features for Buying and Selling EVs

Online car marketplace Carvana has introduced new features for buying and selling electric vehicles (EVs).

The company says its new streamlined process highlights vehicles qualifying for the Clean Vehicle Tax Credit in the search experience and lets eligible customers apply the up to $4,000 in savings from the credit at checkout.

“Carvana has always believed in using technology to make the car buying process easier, more transparent and more accessible for our customers,” Dan Gill, Carvana’s chief product officer, said in a news release.

“By integrating the federal tax credit directly into our eCommerce experience, we are driving convenience and savings for the increasing portion of our customers interested in buying EVs,” Gill added.

According to the release, Carvana’s automated system now checks vehicle eligibility and applies the Clean Vehicle Tax Credit to the purchase of electric or plug-in hybrid vehicles at checkout for eligible customers who choose to transfer their credit to Carvana.

Instead of waiting for a lower tax bill next year, customers can now get up to $4,000 savings up front. Those savings also automatically flow through to eligible customers’ financing terms, the company said.

“The detailed vehicle eligibility checks we’re running behind the scenes help customers shop with confidence while the integrated tax credit savings help customers take advantage of more affordable entry points to the growing EV category,” Gill continued.

The company’s new offering comes as EV sales have been climbing. But as PYMNTS wrote earlier this week, that growth is still being held back by consumer apprehension about the ability to access EV charging stations and then the ability to pay for that service. J.D. Power released a report in May that underlines those concerns.

“As the industry inches toward mass consumer adoption, the main roadblocks to getting consumers behind the wheel of an EV are the continued shortage of affordable vehicles, charging concerns and a lack of knowledge regarding the EV ownership proposition, including incentives,” said Stewart Stropp, executive director of EV intelligence at J.D. Power.

The ability to pay at the EV charging station has been addressed by a number of payment companies. For example, Visa has told its merchants that the success of a charging station often depends on the ease of payment for customers. It recommends installing Visa-accepting terminals and allowing contactless payment options to enhance the experience. Visa also says that digital payment solutions, such as mobile app payments, should be complemented with tap-to-pay options for accessibility.

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