Automakers are offering generous deals on electric vehicles, many well over $10,000, as the federal tax credit winds down. The discounts are sparking a selloff as buyers rush to secure the $7,500 EV credit before the deadline at the end of the month.
Big discounts fuel an EV selloff before the tax credit ends
It’s no secret by now that the $7,500 tax credit for new EV purchases is set to expire on September 30, 2025. Automakers have been able to pass the savings on to buyers through a leasing loophole.
In addition to the $7,500, many are offering their own discounts, including through lease cash, conquest, or loyalty bonuses, and more, which can add up to over $10,000 or sometimes even $20,000 in savings.
For example, Honda is currently offering up to $19,000 off MSRP on the 2025 Prologue in most parts of the US. The deal includes a $4,500 dealer lease cash bonus, $5,000 in captive lease cash, a $3,300 loyalty or conquest bonus, and the $7,500 tax credit.
Earlier this summer, Lucid was offering over $31,000 off select 2025 air models. Nearly every automaker, including GM, Ford, Tesla, Honda, and Hyundai, to name a few, is currently offering some of their strongest EV promotions to date.
The significant discounts have sparked an “EV selloff” over the past few months. According to the latest Lotlinx data (via Automotive News), EV supply in the US dropped drastically last month.
EV supply fell to just 59 days in August, down from 73 in July and 99 in June, as automakers pushed aggressive discounts to clear inventory ahead of the deadline.
Meanwhile, total new vehicle inventory across all powertrains rose to 2.76 million at the start of September, up from 2.69 million in July. By powertrain type, hybrids were in the lowest supply at 52 days, followed by EVs at 59 days, while internal combustion-powered vehicle supply rose to 67 days.
Among those that report monthly numbers, Volvo, Hyundai, Kia, Honda, and Subaru trimmed inventory levels. Ford and Mazda saw their supply increase.
Although Toyota’s remained about the same, the automaker had the tightest supply and was the only brand with vehicle supply below 30 days.
Despite back-to-back record EV sales, GM warned earlier this month that EV sales will slow as the “irrational discounts” come to an end. The company added that it could take several months for the market to correct. Like most, GM is bracing for significant changes over the next few months.
Are you looking to secure the savings while they are still available? You can check out our list of EVs you can lease for under $300 a month here, or use our links below to find deals on some of the most popular EVs in your area.
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