With EV tax credit gone, now’s the time to buy an electric car

Once they’re gone, experts are expecting the growth of the EV market to slow — but not stop — under the Trump administration.

For the next two-and-a-half months that the federal incentives are intact, automakers and dealers could drop prices to try to move their inventory more aggressively, said Loren McDonald, chief analyst at EV and charging data firm Paren.

Fueled by the tax credits, the EV market has already had a steady drumbeat of some ​“amazingly low lease prices,” Malmgren noted. For example, in July, the 2024 Fiat 500^e and the 2025 Toyota bZ4X, an all-electric SUV, are both on offer for $179 per month, InsideEVs reports.

Customers could see more deals like these if sellers anticipate a slump in consumer interest once the tax credits expire. However, discount offers are likely to be patchy, with the most popular models maintaining higher price points if demand for them outstrips supply, McDonald said.

In the used-EV sector, the $4,000 credit can make an especially big difference; some used EVs are priced as low as $15,000 or $20,000 to begin with.

“The used EV market is quietly on fire,” said Liz Najman, director of market insights at Recurrent, a company that aggregates data on battery health from tens of thousands of EVs across the United States. Used EVs are selling faster than at any point since COVID, she added.

How to shop for an EV

Check out Recurrent’s guide to shopping for used EVs and Plug In America’s PlugStar.com, a brand-neutral resource to help people find the vehicle that’s right for them. Type in your ZIP code, and the site shows you local EV incentives.

“Given all the changes going on, try to find a dealer that offers the point-of-sale rebate,” Najman said, so you don’t have to worry about claiming it yourself next tax season. ​“Work with a dealer who has IRS credentials, who can show you on the spot that they’re logging in and the car is qualified.”

If you run into trouble in your EV search, you can reach out to Plug In America; the nonprofit offers free one-on-one support for prospective and current EV drivers.

And don’t forget to land on your charging strategy — at home, work, or a public station. If you decide to get a charger, install it before you bring your EV home for ultimate convenience.

“The clock is now ticking on the federal tax incentives for new, used, and leased EVs,” Najman said. ​“The sooner you start looking, the better.”