Yes, I'm talking specifically about used EVs. We have an incentive for buying used from a dealer, but that doesn't apply if I buy from the owner directly.

So all it's doing is funneling money to dealers. Why would I buy a car for $20k from a private seller if I can get a similar car for $22k from a dealer with a $4k credit (so $18k net)? The private seller would have to sell for $18k to be on par, so why wouldn't they sell to the dealer for $19k? In this scenario, the dealers pocket the difference. If I could get the credit for private sales, I'd be willing to pay $21k ($17k net), so both I and the seller are better off (seller gets $2k more, I pay $1k less). The result is that prices for used EVs stay higher than they normally would because the private market can't effectively put downward pressure on prices.

It's entirely stupid. The dealer certainly provides some level of value (financing, selection, etc), but the private option should be practical for those who don't need or want what dealers provide. I have never purchased a car from a dealer, and I don't plan to start now (I don't trust them), and it's part of why I don't have an EV.