AUTO

EV Tax Credit Is Gone, Here Is How Shoppers Still Save Big In 2025

October 24, 2025

The average buyer claimed around $6,700 from the federal EV tax credit before it disappeared.
Some dealers are still slashing up to $15,000 off leftover EVs to clear inventory after the credit’s end.
EV market share hit 11.7% in September 2025, the last big rush before incentives dried up.

If you missed the deadline for the federal EV tax credit, you still have options. Some state and local governments will still give rebates or perks depending where you live. And dealerships will likely try to clear out older model-year EV inventory. Many manufacturers are offering pretty tempting cash incentives and financing deals right now. (More on that in a moment.) And used EVs are looking increasingly cost-effective.

The hurry to lock in the EV tax credit created a surge. Tesla delivered 497,099 vehicles globally in Q3 2025, a 7.3% increase from the same period last year. Much of that jump came from American buyers racing to complete their purchases before the federal tax credit expired on September 30, creating a last-minute buying surge across dealerships.

In tax year 2023, Cars & Driver found U.S. buyers captured an average of approximately $6,709 of the $7,500 new-EV credit and roughly $3,392 of the $4,000 used-EV credit. With that cushion gone, many shoppers will feel pricing pressure.

On the flip side, used EV prices keep dropping, according to Recurrent, as inventories swell and competition heats up. That’s giving bargain hunters some breathing room. At the same time, automakers are under mounting pressure to deliver genuinely affordable models, including next-generation entries in the low $30,000 range. For new EVs, expect transaction prices to creep upward now that the federal incentive has ended.

For automakers, they’re doing some adjusting. GM has partly idled a plant that builds large electric trucks, and several competitors have paused or dropped select models. A more cautious approach is on the table.

But the investment in EV manufacturing, charging infrastructure and battery tech remains strong. The Electrification Coalition noted that despite the EV tax credit ending the “the long-term outlook for electric mobility—both globally and in the United States—remains strong” thanks to massive investments, doubled charging ports in three years, and an expanding American EV line-up.

What should you, as a buyer, do (or keep doing)? Start by checking state and local rebates today. The federal perk is gone now, aside from rare cases where a pre-deadline deposit locked it in.

Crowds gather around the Lucid Gravity SUV at Electrify Expo Phoenix, featuring its open front trunk with integrated bench seating on display — _{Crowds gather around the Lucid Gravity SUV at Electrify Expo, featuring its open front trunk with integrated bench seating on display.}

Then call your dealer and ask for old model-year clearance pricing. Many brands are dangling heavy cash and 0% APR on EVs and PHEVs, with some deals reaching $15,000 off or 0% financing.

Next, give the used-EV market a serious look, since values have become attractive in this post-credit moment. Finally, before you sign anything, review your home and public charging access, ask for a battery health report on any used car, and run the total cost of ownership, not just the sticker price.

So what comes next? The mood is careful. Analysts still expect growth, just not the race pace from late summer. In the near term some factories may dial back EV output, and discounts may thin since the federal credit no longer cushions pricing.

Priority now goes to affordability, battery cost per kilowatt hour, and building cars more efficiently. EV share reached 10.5% in Q3 2025, according to Kelley Blue Book and Cox Automotive, while September alone touched 11.7% as buyers rushed before the deadline. The near-term outlook from Cox calls for a cooler sales pace for the remainder of 2025 as the credit hangover settles in. In short, the market keeps moving, just at a steadier pace.

So yes, the easy $7,500 entry door to an EV has closed. EVs remain very much in play. There are still deals. There is still inventory. State and local incentives continue in many areas. And the used EV market may be the smartest place to shop right now. Go in with eyes open, recognize the rules changed, and avoid assuming the deal you heard last year still applies.