I didn't think I could afford an electric car, but the $4,000 used plug-in hybrid tax credit meant it could fit my budget

Our experts choose the best products and services to help make smart decisions with your money (here's how). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

• When I started thinking about buying a car, minimizing my environmental impact was important to me.
• I learned that there's a $4,000 tax credit for buying plug-in hybrids, which are a good fit for me.
• Buying a used car is a risk but gap coverage and a warranty make me feel better about that risk.
• This article is part of "Your Wallet on the Climate Crisis," a series exploring the crisis' financial impact and how people can plan. For more climate-action news, visit Insider's One Planet hub.

I've always aspired to be the sort of person who makes environmentally beneficial choices, whether that's taking reusable bags to the grocery store or taking public transportation when I can.

I haven't always succeeded, though. I live in an apartment in northern Virginia, just outside of Washington, DC, and while I take the Metro as often as I can, it's not always convenient or feasible to use it for day-to-day errands.

I'd love to get an electric car and feel like I'm making great choices and limiting my personal impact on climate change, but that's easier said than done. I see plenty of Teslas when I'm out and about, and I know two things are usually true: The drivers of those vehicles probably own their homes and have the ability to charge their cars every night, and they probably make at least double what I do.

When I started looking for a used car, I weighed everything I wanted in a car, and the biggest factor in my decision was cost. I wanted to get a hybrid if I could, but I wasn't in a position to consider an all-electric car. I discovered a somewhat niche category that met all my needs: plug-in hybrids.

I feel better about buying used

Buying a car is never a simple decision. There are dozens of factors worth considering and plenty of dealbreakers. For one, I'm over 6 feet tall — that means a lot of cars simply won't give me the room I need to be safe and comfortable. But there are also a lot of "soft" requirements.

Initially, I wanted to get a new car, or failing that, one with as few miles as possible. I've dealt with the frustration of having a car with a ton of miles on it. But I also know that getting a used car is one of the best choices I can make for the environment. No matter what you buy, whether it's a huge gas guzzler or a fully electric car, the emissions from manufacturing a new car are enormous. Extending the life of a car that's already seen some use is the best choice.

Related: The best car loans »

And the truth is, my lifestyle has changed drastically over the years. When I was commuting to college and various in-person jobs, I needed a car that could handle years of daily use. These days, I really just need something that can get me to Costco every week or two.

Tax credits for used electric cars are worth up to $4,000

The tax credits offered for electric cars have varied over the years, but the most recent big change came in August 2022, and it came with both upsides and downsides. Previously, manufacturers were limited by the number of cars eligible for tax credits every year, and those limits have gone away. Most of the tax credits for new electric cars only apply to cars assembled in the US. For new cars, the tax credit is up to $7,500.

For used cars, it doesn't matter where the car was manufactured — you can get back 30% of the cost of the car, up to $4,000. That means that if you're looking to buy electric today, there are a lot more models that come with tax credits if you buy used.

The car I found is a Ford C-Max Energi. It's assembled in the US, so I would have benefited from the full credit either way, but I was able to consider a much wider range of plug-in hybrids, such as the Toyota Prius Prime.

I can't go fully electric right now, but I'm glad I can get started

I would have loved to be able to buy a fully electric car, but I can't control what charging options are available at my apartment. President Joe Biden's goal is for half of all cars sold in the US to be fully electric by 2030. I'm optimistic that we'll have the infrastructure in place to make that a reality next time I need to buy a car, but for now, I'm excited to be able to get started.

Many of the grocery stores, restaurants, movie theaters, and Metro stations I go to regularly have chargers right now, and for local errands, I look forward to being able to keep my gas use to a minimum. At the same time, it's nice that I'll have the flexibility to get around even when there aren't chargers near my destination.

Gap coverage and a warranty make me feel better about my purchase

My car had over 68,000 miles when I bought it. I'm confident that my lifestyle won't put a ton of miles on it, but buying a car with that many miles is a little risky no matter what.

The car is old enough that the manufacturer's warranty has expired, so I'm paying for gap coverage and a three-year warranty. I'm paying a little bit more each month, but it's worth it knowing that I'm covered should anything go wrong.

I'm worried about how the climate crisis will affect our world in the coming years, and I know my individual actions aren't enough to stem the tide. But I'm glad I can make a small difference when possible — and it's nice to be able to save money while doing it.