EV sales surged 17.7% in August as drivers raced to buy before a popular tax credit expired — how to still snag a deal

Core Insights - The federal EV tax credit, which provided $7,500 for new EVs and $4,000 for used models, expired on September 30, 2025, significantly earlier than the original expiration date of 2032 due to legislative changes [1] Sales Performance - New EV sales increased by 17.7% in August year-over-year, leading to an all-time high market share of 9.9% for EVs [2] - Used EV sales surged by 59% year-over-year [2] - Major automakers like Tesla, Chevrolet, Ford, Hyundai, and Honda reported their best EV sales in August, although Tesla's market share declined by four points while Honda's market share increased by 47.9% month-over-month [3] Tax Credit Eligibility - Buyers who entered into a purchase agreement and made a payment before the September 30 deadline may still qualify for the tax credit, even if they take possession of the vehicle afterward [4] - Specific eligibility criteria for the tax credit include that the EV must be manufactured in North America with a portion of its battery components produced in the U.S. or a country with a free-trade agreement with the U.S. [5] - The credit applies only to vehicles with a manufacturer's suggested retail price below $80,000 for SUVs, vans, and pickup trucks, or $55,000 for other vehicles, and is limited to households with certain income thresholds [6]