Looking to upgrade to an electric vehicle or hybrid? A big incentive that could save you money ends soon.
An incentive program to get you to purchase an electric vehicle or a plug-in hybrid car is coming to an end, and that means if you want the benefit of the thousands of dollars the federal government is offering, you've only got a couple of days to act.
This coming Tuesday, the electric vehicle federal tax credit comes to an end, and if you've dreamt of being that person who waves going past the gas station, you have to act now.
"You have to put that purchase in by the end of the day, September 30," explained Em Nguyen of CarFax. "This is what gives anybody who is interested, when you're buying an EV or plug-in hybrid, a $7,500 tax credit for new vehicles and $4,000 tax credit for used vehicles."
Nguyen said it has to be more than just reaching an agreement with the deal by Tuesday at midnight, but if you have the purchase submitted and have payments set up, you're good to go.
She also said that prospective buyers are coming in to go gasless in droves.
"Right now, EVs and hybrids have seen a spike in sales," she said. "They are selling about 30% faster than they were just at the beginning of the summer, according to CarFax's data."
So far, tariffs generally have not hit the EVs and plug-in hybrids, as CarFax data shows prices have remained mostly stable. Plus, with the tax credit coming to an end, you may find some motivated dealers.
"Of course, that deadline is coming up, and dealers understand that they need to get rid of this inventory before that happens, because after that, consumers will have to pay full price, and they know this," Nguyen said.
Full price, less motivated to buy, and once the Inflation Reduction Act sunsets on Tuesday, and the incentive ends, there is nothing on the horizon to lure buyers in.
Now, this doesn't mean that if you go purchase an electric vehicle, someone is going to hand you $7,500 in cash; it's more complicated than that. There are ways to do that and get the cash, but there are also ways to get the price of the vehicle reduced or claim it on your taxes.