DETROIT – Analysts say sales on EVs have been strong as some buyers push to get ahead of the loss of federal tax credits. The “Big Beautiful Bill” signed by President Donald Trump will end the $7,500 tax credit for new EVs and $4,000 for used EVs, as well as credits for business and individual EV charger installations, on Sept. 30.
Between that and automakers moving out EV inventory in July, Cox Automotive’s data showed discounts soared and the average transaction prices on EVs plummeted compared with the year-ago period. The result: Sales of EVs experienced a boost.
It indicates that you might get a good deal on an EV — if you act fast.
“The urgency created by the administration’s decision to sunset government-backed, IRA-era EV incentives was expected to create serious demand for EVs in the short term. If last month is any measure: Mission Accomplished,” wrote Stephanie Valdez Streaty, Cox senior analyst, in a report released Aug. 13. “July sales were near an all-time monthly record. At this pace, Q3 will be the best ever and then some, as buyers jump in before the big incentives dry up.”
Tesla leads price plummets
Cox data showed that the average transaction price on new EVs in July was $55,689, that’s down by a whopping 4.2% compared with the year-ago period. That average transaction price also is 2.2% lower than June’s average transaction price of $56,915. The average transaction price is what customers pay after all discounts, trade-ins and deposits are applied to the manufacturer’s suggested retail price.
