EV sales spike before federal credits expire
With federal EV tax credits of $7,500 for new and $4,000 for used vehicles set to end on September 30 under the Trump administration’s One Big Beautiful Bill Act, U.S. buyers are rushing to purchase and lease electric cars. Cox Automotive reports August new EV sales up 17.7% year over year and used EV sales up 59%, while dealers offer aggressive incentives—some leases as low as $40/month—amid concerns sales could slow once credits lapse.
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EV sales surge ahead of federal tax credit expiration next week
New information:
- Federal EV tax credits expire September 30, 2025 ($7,500 new; $4,000 used)
- Cox Automotive: August new EV sales +17.7% YoY; used EV sales +59% YoY
- Kelley Blue Book: EVs were 9.9% of August U.S. auto sales (up from 9.1% in July)
- Cars Commerce: Used EVs now average 46 days on lot (about 30% faster than last year)
- Dealers report extraordinary lease deals (e.g., $40/month at a Denver VW store) and expect a potential October slowdown