Ford, GM Roll Out Dealer Lease Workarounds To Extend $7,500 EV Tax Credit: Report

Ford and General Motors have launched new programs that could allow car buyers to keep benefiting from the $7,500 federal electric vehicle tax credit even after it officially expires on Tuesday.

The automakers’ financing arms will buy EVs from dealer inventories by making down payments, a move that qualifies them for the tax credit under federal rules. Dealers can then offer leases on those same vehicles, effectively passing the $7,500 savings on to consumers for several more months, according to a Reuters report, citing dealers and company documents.

The approach is intended to ease the impact of the subsidy’s expiration, which has fueled a last-minute rush in EV purchases as buyers tried to lock in the benefit. The tax credit, which has supported EV adoption for more than 15 years, was set to end on Sept. 30 under U.S. President Donald Trump’s tax bill signed in July.

GM said it worked with its dealers to extend the leasing offer, allowing customers to continue benefiting from the credit, while Ford Credit stated that it will maintain competitive lease payments through Dec. 31.

Dealers, analysts, and auto executives have warned that EV sales and leases could decline sharply once the credit is no longer available. Both Ford and GM have reportedly devised their programs after consulting with the IRS. 

The agency had previously clarified that to qualify for the credit, a binding contract and payment must be completed by Sept. 30.

The effort comes as analysts and industry experts warn of a steep downturn in EV sales once the subsidy ends. iSeeCars.com analyst Karl Brauer told Yahoo Finance that the U.S. EV market share could “drop well below 4%” after Sept. 30, from 9.1% in July, and may not recover until early 2026.

Several automakers have already introduced promotions to offset the loss of the incentive. Lucid Motors in August announced a $7,500 “Lucid Advantage Credit” for customers leasing its Gravity SUV between October and December. 

Tesla CEO Elon Musk also reminded buyers that deliveries, not orders, must be completed by Sept. 30 to qualify for the federal credit, and rolled out limited-time perks such as a $1,000 discount for military and teachers, a month of Full Self-Driving (Supervised), and FSD transferability.

GM, which reported that U.S. EV sales more than doubled year-over-year in July to 19,000 units, including 8,500 Chevrolet Equinox EVs, said demand has surged in the final months before the tax credit expires. 

On Stocktwits, retail sentiment for Ford was ‘bullish’ amid ‘high’ message volume, while sentiment for General Motors was ‘extremely bullish’ with ‘high’ message volume.

While GM’s stock has risen 15.7% so far in 2025, Ford’s stock has climbed 29.7% over the same period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on