October 1, 2025 - Ford and GM Get Creative With EV Tax Credits

This is the Telemetry Transportation Daily for October 1, 2025, and I'm Sam Abuelsamid, Vice President of Market Research for Telemetry.  

The U.S. federal tax credits for the lease or purchase of electric vehicles have now officially expired. While some states are still offering tax breaks, the $7,500 credits on new EVs and $4,000 for used EVs are now gone, at least officially. Manufacturers will now have to compete directly with internal-combustion vehicles on price, and there are a number of new options arriving in the coming weeks and months that will do just that, including the new Nissan Leaf and Chevrolet Bolt. 

However, for those who want a deal on other EVs, Ford and General Motors have come up with a creative solution. The IRS recently announced that as long as customers have a purchase contract and make at least one payment prior to September 30, they would be eligible for the tax credits even if the vehicle is delivered after that date. GM Financial and Ford Credit offered to buy the EV inventory from their dealers and make the down payment prior to September 30, claiming the tax credits just as they have done with leases for years. The dealers can then lease those vehicles to retail consumers, factoring the credits into the monthly payment calculation and reducing that payment. Ford is also offering dealers an additional $1,000 incentive on each vehicle leased through the end of the year. 

Obviously, this can only apply to vehicles that were in stock prior to the end of September and only for dealers that opted into the programs. However, at least for GM and Ford, this may provide a softer landing for EV sales in the fourth quarter. The end of the federal incentives is believed to have created a significant pull ahead of sales in the third quarter, and Q4 sales are expected to trail off considerably, with EV market share potentially dropping to 5% or less this quarter. However, this strategy by at least GM and Ford could help boost their sales at least through the end of the year. 

Thanks for listening.