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2h ago

Federal EV Tax Credits End as Ford and GM Use Lease Tactics To Keep $7,500 Savings Alive

After a record pre-deadline surge, analysts forecast a sharp slowdown, with only limited relief from leasing tactics or a handful of state rebates.

An electric vehicle charging location is shown from the view of a drone in Carlsbad, California, U.S., May 14, 2025. REUTERS/Mike Blake
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Overview

  • The federal $7,500 new‑EV and $4,000 used‑EV credits expired Sept. 30 under President Trump’s One Big Beautiful Bill Act.
  • Ford and GM confirmed programs in which their finance arms bought dealer EV inventory before the cutoff to capture the credit and pass it through in lease rates, with Ford’s deals running through Dec. 31 and GM’s offered at participating dealers while supplies last.
  • The IRS clarified in August that buyers with a written binding contract and payment made by Sept. 30 may still claim the credit even if delivery occurs later.
  • EV demand was pulled forward ahead of the deadline—Cox Automotive reported a 9.9% market share in August and projected Q3 sales up more than 20% year over year—while the Congressional Research Service estimates a 25%–30% decline after repeal.
  • Some shoppers will still find savings through leases and remaining state or utility incentives, and Ford CEO Jim Farley warned the U.S. EV market will be “way smaller” without the federal $7,500 incentive.