CARFAX: EV and Hybrid Sales Surge as Federal Tax Credit Nears End

Rhea-AI Summary

CARFAX reports a significant surge in electric vehicle (EV) and hybrid sales as the federal tax credit deadline approaches on September 30, 2025. Data shows these vehicles are selling 30% faster than at the beginning of summer, while overall vehicle sales remain steady.

The expiring tax credits include $7,500 for new EVs and $4,000 for used models under the Inflation Reduction Act. Despite increased demand, prices have maintained stability. CARFAX provides essential tips for potential buyers, including thorough research, budget planning, test driving, and pre-purchase inspections.

Positive

• None.

Negative

• Federal EV and hybrid tax credits ending September 30
• Limited time remaining for buyers to take advantage of incentives

Overall Car Sales Remained Steady this Summer as EV and Hybrid Demand Accelerated

CENTREVILLE, Va., Sept. 25, 2025 /PRNewswire/ -- Car shoppers are racing to buy electric vehicles before time runs out. With the federal tax credit for new and used EVs and some plug-in hybrids set to expire at the end of September, CARFAX data shows EVs and hybrids are selling much faster than usual, even as their prices hold steady.

Now, EVs and hybrids are selling about 30% faster than they were at the start of the summer, according to CARFAX data. Over the same period, overall vehicle sales have remained mostly steady, despite analysis showing that overall vehicle sales trends typically align with EV and hybrid sales. This gap marks a major shift in consumer buying behavior, as EV and hybrid demand break from traditional sales patterns seen over the last few years.

"EV and hybrid sales are spiking, yet prices remain stable," said Patrick Olsen, Editor-in-Chief at CARFAX. "For shoppers considering a purchase, experts say now is the time to act."

The Inflation Reduction Act included EV and some plug-in hybrid incentives with a $7,500 tax credit for new models and $4,000 for used ones. This summer, Congress voted to eliminate the credits, setting Sept. 30 as the final day for eligible purchases to qualify.

Here are CARFAX's Top Tips to Help Navigate the Used EV & Hybrid Car Market:

1. Do Your Research: Always check the CARFAX Vehicle History Report for accident history, service records, and past ownership.
2. Know Your Budget: Explore financing options early and stay open to different makes and models that fit your price range.
3. Take a Test Drive: Experience the performance, comfort, and features before buying.
4. Ask Questions: Inquire about the car's history, pricing, recent repairs, upgrades, battery health, charging options, warranties, and accessories.
5. Get an Inspection: Have a trusted mechanic do a pre-purchase inspection.

Data was analyzed from Carfax Car Listings and other sources that report to CARFAX. For the latest used car listings linked to a free CARFAX Vehicle History Report, visit Carfax.com or get the CARFAX app to shop New & Used Cars.

Editor's note: Interviews with a Carfax expert are available anytime. Please contact Em Nguyen at emnguyen@carfax.com.

About CARFAX

CARFAX, part of S&P Global Mobility, helps millions of people every day confidently shop, buy, service and sell used cars with innovative solutions powered by CARFAX® vehicle history information. The expert in vehicle history since 1984, CARFAX provides CARFAX Car Listings, CARFAX Car Care, CARFAX History-Based Value and the flagship CARFAX Vehicle History Report to consumers and the automotive industry. CARFAX owns the world's largest vehicle history database and is nationally recognized as a top workplace by The Washington Post. Shop, Buy, Service, Sell – Show me the CARFAX®.

S&P Global Mobility is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets.

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SOURCE CARFAX

FAQ

When do the federal EV and hybrid tax credits expire in 2025?

The federal tax credits for EVs and plug-in hybrids will expire on September 30, 2025.

How much faster are EVs and hybrids selling in summer 2025?

According to CARFAX data, EVs and hybrids are selling 30% faster than they were at the start of summer.

What is the current federal tax credit amount for new and used EVs?

Under the Inflation Reduction Act, buyers can receive up to $7,500 for new EVs and up to $4,000 for used EVs.

Have EV and hybrid car prices increased due to higher demand?

No, according to CARFAX, prices have remained stable despite the increased demand and faster sales.

What are CARFAX's main tips for buying a used EV or hybrid?

CARFAX recommends checking the vehicle history report, knowing your budget, taking a test drive, asking detailed questions about the car's history and battery health, and getting a pre-purchase inspection.