As the federal electric vehicle (EV) tax credit approaches expiration on September 30, 2025, consumer interest in electric vehicles is surging. According to a report from the car-shopping marketplace Cars.com, nearly half of potential EV buyers are accelerating their purchase decisions to take advantage of the savings, which can be as high as $7,500 for new vehicles and $4,000 for used models.
The study reveals that consumer awareness of the federal EV tax credit is significant. Approximately 70% of EV and plug-in hybrid shoppers understand the credit, although just over half (53%) are aware of its impending expiration. Furthermore, 78% of respondents indicated that the credit plays a crucial role in their decision-making process, with 47% of those considering an EV stating that the elimination of the credit could accelerate their purchase timelines.
Increased Demand and Inventory Changes
Data from Cars.com highlights a notable increase in market demand, with new EV inquiries rising by 33% compared to the previous year, alongside a 22% increase for used EVs. Aaron Bragman, Detroit Bureau Chief at Cars.com, commented on the situation, stating, “The federal EV tax credit helped make EVs more affordable. While its expiration may slow demand in the short term, it doesn’t mean the end of affordable EVs.” He emphasized that shoppers are quickly moving to secure savings.
Cars.com has also announced its Top EV Picks for 2026, showcasing options that cater to various buyer needs. Leading the list are:
- Best Value EV: 2025 Chevrolet Equinox EV
- 2-Row SUV: 2026 Hyundai Ioniq 5
- 3-Row SUV: 2026 Kia EV9
- Electric Car: 2025 Hyundai Ioniq 6
- Luxury EV: 2026 Lucid Air
- Pickup Truck: 2026 Chevrolet Silverado EV
These selections were made based on affordability, family-friendliness, and technological innovation, which are increasingly relevant as consumers navigate a changing market landscape.
Market Dynamics and Pricing Trends
In August, new EV inventory saw a modest growth of 1.4% year-over-year, while certain manufacturers like Chevrolet and Honda scaled back their supply due to recent EV launches. In contrast, most brands increased their inventory. Average prices for new EVs rose by 4.1% year-over-year, influenced by the introduction of more premium models.
The used EV market also demonstrated significant shifts, with inventory soaring by 38% year-over-year to a total of 97 models. Interestingly, vehicles are selling more quickly, averaging just 46 days on the market, compared to 66 days a year prior. Tesla, which constitutes about one-third of used EV listings, experienced a 16.2% drop in average prices, contributing to an overall 3.8% decrease in used EV prices.
With the federal tax credit deadline looming, consumers are expected to continue making quick buying decisions, while state and local incentives remain available post-September. Automakers such as Nissan, Chevrolet, and Hyundai have also announced plans for new, lower-priced models, indicating that the market for affordable EVs is likely to persist.
Founded in 1998 and based in Chicago, Cars.com is the leading automotive marketplace, attracting nearly 26 million in-market consumers each month. It provides shoppers with essential data and tools to facilitate informed purchasing decisions and connect seamlessly with automotive retailers.
For more information, visit www.carscommerce.inc.