Clean-car sales jump 10% as Coloradans lean on state, federal and utility rebates

Clean-car sales made up 38% of all Colorado passenger and light truck registrations in the third quarter of 2024, a big jump from previous levels and proof, EV proponents say, that the state, federal and utility rebates available are prompting the culture change they seek. 

Fully electric vehicle sales jumped to 21.9% of total sales in the third quarter, up from 16.1% in the spring quarter, according to the latest registration report from the Colorado Auto Dealers Association. That more than made up for slight decreases in the portions of hybrid and plug-in hybrid electrics, or PHEVs, in the third quarter. 

In the first nine months this year, the three cleaner-vehicle categories made up 33.4% of total sales, up from 23.7% in the first nine months of 2023. 

“Rising EV sales show that Coloradans are increasingly understanding that they can save money by driving electric,” said Travis Madsen, transportation analyst with the nonprofit Southwest Energy Efficiency Project. “I’m optimistic that the trend will continue.”

The latest Colorado sales figures come as Gov. Jared Polis and other state officials highlight directly to consumers how cheap some EVs have become after federal, state and Xcel incentives are piled, or “pancaked,” on top of each other. Polis recently held a news conference at a Nissan dealership touting the $19 a month leases available for the Nissan Leaf, of which registrations have surged this year, as well as other deals. 

State officials say new EV buyers who qualify by income for all the incentives at once can lop $26,500 off the sale at the point of purchase. 

“Not surprisingly, the data came back to show Colorado as No. 2 in the nation for EV market penetration,” auto dealers president Matthew Groves said. “Colorado currently has some of the best incentives in the country, allowing consumers to stack both national and state credits, leading to consumers purchasing EVs at a higher rate.”

Colorado’s EV and hybrid boom is in contrast to some national and international reports warning of a slowdown by manufacturers in pumping out new EV models because of slower than expected sales. Analysts for Morningstar put out an October report citing Volkswagen and other automakers temporarily shrinking their EV ambitions because of the perceived lull in consumer interest. 

In Colorado, though, car buyers are offered a long menu of price cuts. The Polis auto dealer event pointed out that all Coloradans can currently take a $5,000 state tax credit at point of sale or lease if the manufacturer’s suggested retail price is under $80,000. Consumers can get $2,500 more taken off if the MSRP is under $35,000. That state tax credit lasts through 2024, and drops to $3,500 on Jan. 1. 

Many models are also eligible for a $7,500 federal tax credit, and $4,000 for used vehicles. Colorado has a cash-for-clunkers program for income-qualified buyers, with another $6,000 off a new EV if they turn in a vehicle that is at least 12 years old or has failed an emissions test. Those turned-in vehicles are scrapped, lowering the average emissions of the overall Colorado fleet. 

Xcel has another income-qualified rebate that can be added to the others, and analysts say it has been highly subscribed and may reach its $6 million limit. Xcel offers an income-qualified $5,500 rebate on new EVs, and $3,000 for used. 

For leases, the dealer can take the credits off the MSRP used to calculate the monthly payment, resulting in ultra-cheap leases like Nissan’s. 

The deals have pushed up clean-vehicle market share in Colorado for Nissan, Hyundai and Kia. Nissan sold or leased 5,666 EVs in the first nine months of 2024, up from 882 the year before. 

Tesla, with a big head start on the EV field, remains the leading nameplate in Colorado and most states, with registrations of 8,545 cars so far in 2024. But the others are catching up. 

Colorado wants 940,000 EVs on the road by 2030 in order to help meet ambitious greenhouse gas and ozone reduction goals, with manufacturers required to have a ratcheting-up percentage of EVs for sale on dealer lots in coming years. Coloradans register about 200,000 to 220,000 new cars, SUVs and pickups of all power trains in a given year. 

Some EV proponents have expressed doubts that a federal government dominated by the GOP beginning in January will continue supporting EV and home electrification rebates. SWEEP’s Madsen said some changes could be coming, but the cultural shift will move forward.

“The transition to electric vehicles is going to happen because the technology has fundamental advantages over combustion vehicles. EVs are about three times more energy efficient than combustion vehicles. Electricity costs the equivalent of less than a dollar per gallon of gasoline,” Madsen said. 

“Experts predict that the costs to manufacture EVs will decline as manufacturing volumes increase, while combustion vehicles are likely to become more expensive to make,” he said. “Regardless of what the incoming administration does, this fundamental advantage will persist.”