Overview

• The federal incentives worth up to $7,500 for new EVs and $4,000 for used models ended Sept. 30 under a budget bill signed by President Donald Trump.
• Automakers are filling the gap with aggressive offers, including BMW’s $7,500 purchase credit and Hyundai’s Ioniq 5 MSRP cuts of up to $10,000 for 2026 plus a $7,500 cash incentive on 2025 models.
• Ford and GM are using leasing and financing structures informed by IRS guidance to pass through the equivalent of the former $7,500 benefit to customers.
• Colorado will raise its Vehicle Exchange rebates on Nov. 3 to $9,000 for new EVs and $6,000 for used EVs for income-qualified buyers who trade in older high-emission vehicles, with point-of-sale discounts funded by delivery and ride-hail fees.
• After a rush to buy before the cutoff, including stronger-than-expected Tesla deliveries, analysts warn sales may slow without sustained incentives or cheaper models, with Ford’s CEO predicting a sharp pullback in near-term demand.