New and used EV sales are experiencing a significant surge, thanks to the recent actions of U.S. President Donald Trump. With the push from the president to end the EV tax credit for both new and used vehicles, consumers are racing to take advantage of the incentives before they are completely phased out. This sense of urgency has driven a remarkable growth in EV sales, as evidenced by the latest data from Cox Automotive.
Following the signing of the Republican budget bill on July 4, which terminates EV incentives after September 30, the “Trump bump” has already made a substantial impact on EV sales. Nearly all manufacturers have seen an increase in demand for their EV models. In July alone, new EV sales reached 130,082 units, marking a 26.4% month-over-month increase and a 19.7% year-over-year growth. This surge in sales has elevated the market share of EVs to 9.1%, making it the second-highest monthly total on record.
The top five brands leading the charge in EV sales include Tesla, Chevrolet, Hyundai, Ford, and Honda, all of which have experienced significant gains. Additionally, luxury brands such as Audi, Cadillac, and Mercedes-Benz have also seen notable growth in the premium segment. With the impending end of EV incentives, consumers are keen on securing their EV purchases before prices potentially increase.
As the market braces for the impact of tariffs and diminishing EV incentives, consumer confidence is wavering, prompting a rush to capitalize on current pricing. Dealers are reporting a decrease in EV inventories, with the average dealer holding a 40-day supply of used EVs in July, a 49% decline from the previous year. New EV inventories have also seen a significant drop, down 49% compared to the previous year.
The current scenario of rising sales and dwindling inventory underscores the urgency for consumers to act swiftly in securing their EV purchases. With the looming deadline of October 1, when EV leases are expected to increase by $7,500 and used EV buyers will no longer be eligible for a $4,000 federal tax credit, now is the opportune time to consider investing in an EV.
For those looking to make a smart EV purchase, it is advisable to explore options in the used EV market and consider leasing a new EV at a competitive price. Utilizing resources such as a used EV buyer’s guide can help potential buyers navigate the market and find the best deals available.
In conclusion, the current landscape of the EV market presents a unique opportunity for consumers to capitalize on incentives and secure their EV purchases before prices potentially rise. With the support of President Trump’s actions, the EV market is experiencing a transformative shift, making it an ideal time for individuals to explore the world of electric vehicles.