As the clock ticked down to the expiration of the U.S. federal electric vehicle (EV) tax credit, two of America’s automotive giants—Ford and General Motors—unveiled creative new strategies to keep the $7,500 incentive alive for their customers, even after the official deadline. The move, which has drawn both industry attention and consumer relief, could soften the blow of a policy change that many believe would otherwise send EV sales into a tailspin.
For more than 15 years, the federal tax credit has helped drive EV adoption by effectively lowering the price of qualifying vehicles. But under a sweeping tax bill signed by President Donald Trump in July 2025, the benefit was set to expire on September 30, 2025. In the weeks leading up to the deadline, car buyers rushed to dealerships, eager to lock in the savings before they disappeared. Dealers and analysts alike warned that, without the subsidy, EV sales and leases would plummet.
Yet Ford and GM weren’t ready to let the momentum slip away. According to Reuters and Automotive World, both automakers launched new dealer financing schemes designed to functionally match the expiring tax credit’s value for several months beyond its scheduled end. The approach hinges on a clever interpretation of federal rules: before the cutoff, the companies’ financing arms—Ford Credit and GM Financial—would buy EVs from dealer inventories by making down payments. This action qualifies them for the tax credit under Internal Revenue Service (IRS) guidelines, which require a binding written contract and payment completed by September 30. Once the vehicles are in their hands, the automakers can offer leases to consumers, effectively passing along the $7,500 savings through lease rates.
“We worked with our GM dealers on an extended offer for customers to benefit from the tax credit for leases,” GM said in a statement to Reuters. Ford, for its part, pledged to keep lease payments competitive through Ford Credit until at least December 31, 2025. The programs, both companies say, aim to ease the transition as the long-standing subsidy vanishes from the market.
Industry insiders say these tactics were not developed in a vacuum. According to sources cited by Reuters, Ford and GM crafted their programs after direct discussions with the IRS. In August, the agency clarified that to qualify for the credit, a vehicle must be acquired by September 30, which can be demonstrated by “entering into a binding written contract and making a payment on the vehicle on or before Sept. 30.” This gave the automakers a narrow window to act—and they seized it.
Dealers welcomed the move, seeing it as a lifeline for both their customers and their own bottom lines. “The programs are aimed at softening the impact of the disappearance of the tax credit, which has been in place for more than 15 years to encourage EV adoption,” one dealer told Reuters. Auto executives and analysts echoed the sentiment, predicting a significant drop in EV sales and leases once the subsidy was gone. Karl Brauer, an analyst at iSeeCars.com, told Yahoo Finance that the U.S. EV market share could “drop well below 4%” after September 30, down from 9.1% in July, and may not recover until early 2026.
Other automakers have scrambled to respond as well. Lucid Motors, for example, announced a $7,500 “Lucid Advantage Credit” for customers leasing its Gravity SUV between October and December 2025, aiming to cushion the blow of the lost federal incentive. Tesla, meanwhile, rolled out its own set of limited-time perks: CEO Elon Musk reminded buyers that deliveries—not just orders—had to be completed by September 30 to qualify for the federal credit, and the company offered a $1,000 discount for military personnel and teachers, a complimentary month of Full Self-Driving (Supervised), and FSD transferability for a short time.
The urgency was palpable across the industry. GM reported that U.S. EV sales more than doubled year-over-year in July 2025, reaching 19,000 units, including 8,500 Chevrolet Equinox EVs. The looming policy change clearly spurred a surge in demand, as buyers raced to capitalize on the soon-to-expire credit.
The financial markets took notice, too. According to Stocktwits, retail sentiment for Ford was “bullish” with high message volume, while sentiment for General Motors was “extremely bullish.” Both companies’ stocks reflected the optimism: GM’s stock rose 15.7% and Ford’s stock climbed an impressive 29.7% so far in 2025.
Still, not everyone is convinced that these temporary measures will be enough. Dealers, auto executives, and analysts have warned that the programs, while helpful, may only delay an inevitable slump in EV sales and leases. The federal tax credit has been a cornerstone of the U.S. EV market, and its loss could have far-reaching consequences for manufacturers, dealers, and consumers alike.
At the heart of the issue is the role of government incentives in shaping consumer behavior. For over a decade, the $7,500 tax credit made EVs more accessible to a broader swath of Americans, helping to jumpstart an industry that many see as vital to the country’s environmental and economic future. The credit’s expiration, set in motion by the Trump administration’s tax overhaul, represents a major shift in policy—and one that comes at a delicate time for automakers investing heavily in electrification.
As the dust settles, the next few months will serve as a crucial test for Ford, GM, and the broader EV market. Will these creative financing schemes keep buyers interested, or will the loss of the federal subsidy prove too steep a hurdle? Only time will tell. But for now, the industry is holding its breath, watching closely as the landscape changes—and hoping that innovation and determination will keep the electric dream alive.
The end of the tax credit marks a turning point, but Ford and GM’s bold response has given both consumers and dealers a little more runway. Whether it’s enough to weather the coming storm remains to be seen, but one thing is clear: America’s automakers aren’t giving up without a fight.
