As the $7,500 EV tax credit disappears, Ford and GM get creative—while buyers brace for impact
The clock has run out on one of the most influential incentives in the electric vehicle revolution: the $7,500 federal EV tax credit. As of October 1, this long-standing benefit—instrumental in helping millions afford EVs—is no longer available for many models. But don’t count Ford and General Motors out just yet.
Instead of accepting the expiration, America’s two automotive giants have deployed a strategic endgame to keep the credit alive through leasing, offering a temporary lifeline for both dealers and buyers—and keeping EV demand from flatlining in Q4.
How Ford and GM Are Bending the Rules—Without Breaking Them
With the tax credit officially sunset, you’d expect lease prices to surge. But that’s not happening—at least not immediately. Why?
Because Ford Credit and GM Financial have jumped in with a workaround: they’re front-loading down payments and technically “buying” EVs off dealer lots before the September 30 deadline. This smart move locks in eligibility for the $7,500 tax credit.
Then, those pre-qualified vehicles are re-leased to customers at discounted rates, with the tax credit effectively baked into the lease terms. It’s bold, legal, and—for now—effective.
“We worked with our GM dealers on an extended offer to ensure customers can still take advantage of the EV lease credit,” said a GM spokesperson. Ford echoed a similar sentiment, aiming to keep payments competitive until year-end.
A Race Against the Clock
This coordinated push wasn’t random. Internal memos and dealership sources suggest both companies began scrambling in early September to implement this plan. Their objective? Cushion the blow from a disappearing credit that has, for over 15 years, fueled EV adoption across the U.S.
For buyers who missed the cutoff for traditional purchases, leasing now offers a compelling second chance.
But there’s a catch: this isn’t a permanent fix. These “preserved” lease deals will fade out over the next few months as dealer inventories run dry of pre-qualified vehicles.
What Happens Now That the Credit Is Gone?
With the federal subsidy no longer on the table for most EV buyers, automakers face a harsh reality: rising prices could choke sales. In fact, industry insiders are already bracing for a dip.
Ivan Drury, Director of Insights at Edmunds, puts it bluntly:
“If buyers weren’t biting at current prices, there’s no way they’ll buy when the credit disappears.”
So what happens next? According to analysts, we’ll likely see:
- Lower sticker prices
- Heavier cash-back offers
- More flexible financing
- Potential production slowdowns
The goal is clear: keep EVs moving off lots without government help.
Lease Deals: The New Battleground
Back in 2019, when GM and Tesla hit the tax credit cap, they quickly slashed prices to stay competitive. The current climate is even more aggressive.
In the first half of 2025, EV sales growth slowed to just 1.5%, per Cox Automotive. Compare that to 2024’s robust 7% surge, and it’s clear why automakers are throwing incentives at the problem.
Ford and GM’s leasing strategies could become a template for others—though most manufacturers have stayed quiet, at least for now.
Buyers Still Want EVs—Credit or Not
Despite the subsidy’s expiration, Americans haven’t turned their backs on electric vehicles. A recent Cox survey shows that 65% of buyers still plan to go electric within two years. Only 20% say they’ll pivot to gas or hybrids.
Their reasons?
- Lower maintenance
- Fuel savings
- Driving performance
- Environmental concerns
The tax credit may be gone, but the value proposition of EVs remains strong.
Not Every EV Was Eligible Anyway
It’s also worth remembering: not all EVs even qualified for the full credit to begin with. Vehicles priced over $80,000 were excluded, leaving out luxury trucks, SUVs, and many top-tier trims.
So for shoppers in that bracket, this policy shift might not sting as much.
And with EV pricing often negotiable—especially at franchise dealerships—the impact will vary wildly across brands, models, and regions.
What’s Next?
While the IRS hasn’t yet weighed in on the legality of these leasing workarounds, Ford and GM reportedly designed the programs in consultation with federal tax authorities. Whether other automakers follow suit—or whether regulators crack down—remains to be seen.
One thing’s clear: the road ahead for EVs just got bumpier.
But if Ford and GM’s playbook works, the industry might find new ways to stay on course—even without Uncle Sam riding shotgun.
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Hey, I’m Badal! I’m super passionate about cars—especially electric ones. Whether it’s EVs, electric trucks, bikes, or anything with a battery and wheels, I’m all in. I love writing blogs and articles that break things down for fellow enthusiasts and curious readers alike. Hope you enjoy the ride as much as I do!
