It might be very easy to find EV discounts in September. This is the reason.
Before the substantial tax incentives from the Biden administration disappear, some people are charging to purchase electric vehicles under President Donald Trump’s One Big Beautiful Bill Act.
After the tax incentives were reduced by the comprehensive Republican tax plan adopted in July, September is the last month to claim tax credits that can reduce the cost of new and used electric vehicles by thousands of dollars. New EV tax credits are available through September 30 and can pay up to $7,500 for qualified purchases, while used EV tax credits can pay up to $4,000.
According to research from the auto industry, those who are inclined to purchase an EV are scurrying. The parent company of brands like Kelley Blue Book, Cox Automotive, reports that sales of new and used EVs increased by more than 20% month over month in July. The average selling price of new EVs was $55,689, while the average selling price of used EVs was $35,263, both of which decreased month over month.
In addition to the tax rebates, automakers and dealers have stacked discounts. According to Cox statistics, incentives as a percentage of the purchase price for EVs set new records in July. The top five automakers in new-EV sales, according to Cox, were Tesla (TSLA), Chevrolet (GM), Hyundai (KR:005380), Ford (F), and Honda (HMC) (JP:7267).
People are looking for deals at a time when many cars are still pricey, as evidenced by the recent spike in EV purchases. According to Joseph Yoon, Edmunds’ consumer-insights analyst, these factors may cause some consumers who had previously shown no interest in EVs to reconsider.
“It seems like there are never any deals to be found. “EVs are the one area where we know customers can find a good deal,” he stated. Yoon went on to say, “There are a lot of them, and I think the numbers are quite shocking.” This is particularly true for leases.
According to Stephanie Valdez Streaty, director of industry research at Cox Automotive, there may be a “sense of urgency” in the EV market right now, but it’s crucial to avoid making rash purchases. “Take that time to do the research and find that best deal – because it’s out there.”
Here are several things EV buyers need to be aware of in September.
Before you buy an EV, do your homework.
Any automobile purchase is a big decision, and owning an EV comes with its own set of difficulties, such the ability to charge both at home and while driving. However, there are tools available to assist potential EV customers in making selections about what to buy.
For instance, Ingrid Malmgren, senior policy director at Plug In America, a charity that promotes EV use, noted that since early July, the number of people phoning the organization’s hotline has increased. To assist EV customers in determining their eligibility for federal tax credits, the group has also developed a checklist.
Malmgren assisted her daughter in finding a used Volkswagen ID.4 a few weeks ago and rented a Ford F-150 Lightning last month. Prior to the visit, research was done on the car’s availability, tax credit eligibility, pricing, and dealers’ ability to match prices.
In order to apply the tax credit at the moment of sale, it is crucial to verify that the dealer is registered with the Internal Revenue Service, she said. According to Malmgren, one of the requirements set by the IRS before granting the credit is that buyers be able to drive away with an IRS “time of sale” record.
The IRS-registered vendors may be found through websites like as Recurrent, she said.
Assess your eligibility to receive the EV tax credits.
Being aware of your eligibility for the EV tax credit is crucial. Making a mistake when claiming the credit for an electric vehicle purchase now could cause problems when tax time comes around.
Individuals earning up to $150,000 in modified adjusted gross income and married couples earning up to $300,000 are eligible for the new-EV credit. The used-EV credit has income restrictions of $150,000 for married couples and $75,000 for individuals.
Devin Hall, a managing partner at Crowe, where he oversees the accounting and consulting firm’s energy division, stated that if a household earns even a single dollar more than those income limits, it’s game over for them to claim the credits. According to Hall, anyone who claimed the credits without being eligible would be required to pay them back, plus interest and penalties.
He pointed out that the IRS does allow for some flexibility in how income is counted: buyers can use their income from the year they purchased the vehicle or their income from the previous year to be eligible for the credit.
According to the agency, the buyer may use the lower income amount to qualify for the credit if their income from one year exceeds the limit and their income from the other year falls below it.
Vehicles purchased on or before September 30 are eligible for the credits for tax reasons. A vehicle is deemed “acquired” on “the date a legally binding contract is signed and money is paid.” According to the tax collector, “a payment includes a vehicle trade-in or a small down payment.”
Keep in mind the lease loophole.
There is no income cap for a person claiming the EV credits when they lease, even though income determines eligibility for tax credits when purchasing an EV. “If you think you may not meet the income limit, we would encourage you to lease,” said Malmgren.
She advised drivers who lease to carefully review the fine print of the lease to be sure the dealer is transferring the $7,500 credit.
One common way to explore electric vehicles is through leasing. According to the credit-reporting firm Experian (EXPGY), nearly 60% of drivers who purchased an EV in the second quarter of 2025 leased it.
Many folks have been able to jump into an EV with Uncle Sam’s assistance because to this leasing loophole, Yoon said. According to him, it has also enabled automakers to grow their clientele as they figure out how to turn a profit in the evolving EV market.
“They are clearly interested in moving metal,” Yoon stated. “When you want to fight for market share, I think automakers will do anything to be the No. 1.”
Chevrolet’s EV expansion, according to a corporate representative, is “driven by customer response to our vehicles,” notably the “huge success” of the Chevy Equinox EV, MarketWatch said. The representative stated that the company’s incentives and deals, which were among the lowest in the market, are not as appealing as the cars themselves.
According to Edmunds research, the average monthly price for EV leases in July was $538, while the average monthly payment for auto leases was $582. Yoon admitted that there isn’t much of a difference, but the average EV payment conceals certain significantly cheaper leasing offers that dealers are offering for specific models.
After the EV tax credit expires, what happens?
Perhaps now is the greatest moment to get an EV at a reasonable price. Although some analysts do not anticipate the EV deals to go much deeper in September, there may be additional discounts on the margins or with specific models.
Managing director Todd Cassidy, who specializes in the auto business, stated, “I don’t see a situation where it gets substantially better,” in the investment-banking department at Portage Point Partners.
According to him, automakers are turning their attention back to gas-powered cars. While the One Big Beautiful Bill Act is removing the tax advantages for EV buyers, it is beginning a new one for those who purchase vehicles built in the United States.
Interest paid on auto loans for new cars with final assembly in the United States can be written off up to $10,000 starting this year. From 2025 to 2028, buyers earning under $100,000 and married couples earning under $200,000 are eligible for the tax cut.
The IRS has provided some information about the operation of the provision.
According to Hall, if the vehicle and the taxpayer satisfied the other eligibility requirements, the interest paid on a new EV loan would be deductible. In fact, Hall said, a buyer could potentially use the forthcoming loan-interest deduction and the expiring $7,500 credit if they acted fast and found the appropriate car.
Time may be on their side, even for those who aren’t prepared to make a purchase just yet. According to Valdez Streaty, a surplus of EVs will have their leases expire by 2027, which means “there’s going to be so many different options for consumers in the used market.”
