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Iowa Missing Out on Electric Vehicles

Iowa may be missing out as more drivers turn to electric vehicles. A Des Moines Register article states the Consumer Choice Center regards Iowa as one of the worst states in which to own or buy an electric vehicle because direct sale of electric motor vehicles by manufacturers is prohibited by state law.

Iowa state law prohibits the direct sale of electric motor vehicles by manufacturers. Tesla sells directly to consumers instead of working through a third-party car dealership because the company does not feel it can rely on the dealerships to properly explain to customers the advantages its cars have over traditional vehicles.

Additionally, in Iowa, anyone with an electric vehicle must pay a special registration fee in addition to the annual registration fee. Iowa charges a $97.50 electric vehicle fee, which will increase to $130 in 2022. This is more expensive than the $.40 per 100 pounds of the weight of the car and one percent of the vehicle's value which regular vehicles are charged.

"Iowa's ban on direct-to-consumer vehicle sales actively discriminates against EV manufacturers, which does nothing but make these vehicles more expensive, and less accessible," David Clement, North American Affairs Manager for Consumer Choice Center and co-author of the index, said in a press release. "In today's modern age of limitless information, there is no serious justification for a ban on direct sale, other than protecting the existing industry from disruption and competition."

Iowa drivers may have to settle for a used Tesla Model 3, which according to the latest iSeeCars study, is the fastest selling used vehicle right now and for the fourth consecutive month due to its impressive technology, performance and relatively affordable price compared to Tesla’s previous vehicles. iSeeCars  found the average used car takes 32.8 days to sell, while the Tesla Model 3 sold at an average of 16 days and at an average price of $47,453. The Model X ranked ninth, selling at an average of 22.9 days at an average price of $80,635.

There is a high demand for the used versions of the Model 3 and Model X, some of which are being sold at even higher prices than new, because the Model 3’s Standard Range Plus variant is sold out for the remainder of 2021 and the Model X will not be available until February 2022.

According to the latest state data, there are 5,880 EVs and hybrids registered in Iowa. The top company is Tesla, with 1,624 vehicles in the state. The top five counties with most hybrid and electric vehicles registered in the state are Polk, Dallas, Linn, Johnson, and Scott.

When in the market for a used car, stop by Carousel Preowned. Carousel Preowned serving Iowa City, Cedar Rapids, Davenport, North Liberty, Marion, and Coralville, IA, is proud to be an automotive leader in our community. We do our best to ensure your complete satisfaction every time you step into our car dealership. This is why we offer the widest selection of used and pre-owned cars, trucks, and SUVs and provide true ease of purchase in Iowa.

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