With significant changes looming for federal electric vehicle (EV) incentives in the United States, potential EV buyers are being encouraged to act quickly. The long-standing federal EV tax credit, which has helped lower the cost of many new electric vehicles by up to $7,500, is scheduled to expire on September 30. After this date, many new EV models will effectively become $7,500 more expensive, making the current buying window crucial for those wanting to take advantage of these savings. Ford, one of the key players in the EV market, anticipates a surge in demand as the deadline approaches.
In a recent communication sent to its dealerships, Ford emphasized that “demand is expected to increase as the deadline approaches for eligible vehicles.” The automaker urged dealers to make sure they submit Time of Sale reports before October 1 for customers who opt to apply the tax credit immediately at the point of purchase. This step is critical for buyers looking to maximize their savings before the federal credit vanishes.
It’s important to note that not all Ford EV models qualify for the full $7,500 tax credit. For instance, the popular Mustang Mach-E does not qualify for the credit when purchased outright because it is manufactured in Mexico, outside of the United States. However, the Mach-E is eligible for the full credit if it is leased rather than bought. This distinction means that leasing the Mach-E could be an especially attractive option right now. Additionally, Ford has introduced its “Zero, Zero, Zero” promotion for the Mach-E, which is expected to make this an especially favorable time to get behind the wheel of the electric SUV.
This new Ford promotion replaces the company’s previous employee pricing-for-all deal. The “Zero, Zero, Zero” offer includes zero percent financing for 48 months, no down payment, and no payments for the first 90 days, significantly lowering upfront costs. Furthermore, CarsDirect reports that the Mustang Mach-E currently qualifies for zero percent financing over 60 months, sweetening the deal even more for buyers looking for attractive financing terms.
The expiration of the federal tax credit will also impact used EV buyers, although the effect may be somewhat less immediate. While the full $7,500 credit applies exclusively to new vehicles, used EVs can currently qualify for tax credits up to $4,000. These incentives have played a vital role in making electric vehicles more affordable and accessible, especially as living expenses continue to rise nationwide. Once the credit expires, the overall affordability of both new and used EVs could diminish, potentially slowing adoption rates unless other incentives are introduced. For now, prospective EV buyers would be wise to consider acting before the end of September to maximize their savings.