Automakers Offer Significant EV Discounts Ahead of Federal Tax Credit Expiration

Automakers are offering substantial discounts on electric vehicles (EVs) as the $7,500 federal tax credit is set to expire on September 30, 2025. These incentives have led to a significant increase in EV sales, with consumers rushing to take advantage of the savings before the deadline.

Honda, for instance, is providing up to $19,000 off the manufacturer's suggested retail price (MSRP) on the 2025 Prologue in most parts of the U.S. This 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.

Lucid Motors has also offered substantial discounts, with over $31,000 off select 2025 Air models earlier this summer. Other automakers, including General Motors, Ford, Tesla, Hyundai, and Kia, are presenting some of their most aggressive EV promotions to date.

The significant discounts have resulted in a rapid decrease in EV inventory. According to Lotlinx data, EV supply in the U.S. fell to 59 days in August, down from 73 days in July and 99 days in June, as automakers pushed aggressive discounts to clear inventory ahead of the tax credit expiration.

Despite consecutive record EV sales, General Motors has cautioned that sales may slow as these substantial discounts come to an end. The company anticipates that it could take several months for the market to adjust to the new pricing landscape.

Consumers interested in securing these savings are encouraged to act promptly, as the combination of manufacturer discounts and the expiring federal tax credit presents a unique opportunity for potential EV buyers.