Autobayng News Team
With the end-of-summer holiday car shopping season upon us, and the federal electric-vehicle tax credit set to expire at the end of September, a lot of buyers are rushing to score a deal on an electrified car very soon. That may be you over Labor Day weekend and later this month, too. But are you ready to hunt for the best deals?
Here are some tips and strategies to arm yourself with the best game plan before you set foot into a dealership.
There are several approaches to finding the best deal for your situation, and the path you take comes down to a few intertwined variables like tax credit eligibility, budget targets for monthly payments, and/or total cost. Let’s dig in. Best EV Deals
Tax Credits: Which Buyers And Vehicles Qualify?
Thanks to President Trump’s signature One Big Beautiful Bill Act, effective Sept. 30, the government tax credit for new and used EVs expires. The previous tax credit, implemented during the Biden administration, saved buyers up to $7,500 on new EVs and $4,000 on certain used EVs. Tax credits are supposed to be applied at the point of sale and effectively serve as a big discount off your final purchase price.
In other words, get ‘em while supplies last. 2022 Ford Mustang Mach-E with 250,000 miles and still on its original battery Photo by: Ford
If you do intend on purchasing a new EV, know that not every vehicle qualifies for that tax credit, due to the current rules around battery sourcing, the location of final production and total costs.
Then, have a look at our list of the EVs that qualify for the full $7,500 credit. Even if a vehicle qualifies for the credit, the IRS has income thresholds that limit which buyers can get it. You can find those details here, but it is also recommended that you consult your tax professional. The tax credit is capped at $80,000 for vans, SUVs, and pickup trucks and $55,000 for other vehicles.
For more budget-oriented buyers looking for an inexpensive EV, vehicles that are at least two years old and have a transaction price of $25,000 and under (before local tax and fees), there is a tax credit up to $4,000. However, the income thresholds are a bit lower for these cars.
Many dealers will apply this credit at the point of sale, but other stores will provide the necessary paperwork for you to file for the credit on your own. Many EV shoppers have reported that it can be challenging to find reputable dealers that are willing to handle the necessary paperwork to obtain the credit. So buyers will want to confirm with the dealership if the store has the experience and willingness to handle the paperwork.
But if you lease a new EV, all limits are off, and you get the $7,500 tax credit regardless of what you want to drive.
Leases Are Where Most Of The Deals Are
When it comes to new EVs, the consensus is to lease them and not buy them. Currently, all EV leases qualify for the $7,500 regardless of the customer’s tax filing status or vehicle production. But that “leasing loophole” goes away at the end of September, too.
2026 Tesla Model Y Juniper
Photo by: Patrick George
Where things get tricky is accurately comparing the lease programs across various brands to determine which ones are more competitive than others. Many automakers will advertise “lease specials” with super-low payments, but it’s important to pay attention to the fine print and details. Often, these low payments require substantial money up front for the math to work.
I often advise putting little or no money down on a lease because the total cost over time remains the same, and you don’t risk that down payment in case your leased car is totaled in an accident.
Before you go to the dealer, it would be wise to compare the advertised specials and reconfigure the numbers and look at what is called “effective monthly payment,” and then compare that cost to the MSRP.
Here is an example comparison between the Hyundai Ioniq 5 and the Kia EV6. Two cars that are essentially identical when it comes to mechanical components, most features, and their price point.
Photo by: InsideEVs
For a Hyundai on an Ioniq 5 SEL with an MSRP of $51,200, the lease payment is $209 per month with $3,999 due at signing for a 30,000-mile, 24-month lease. This works out to an effective monthly payment of about $376 per month or a total lease cost of $9,024. Photo by: InsideEVs
Examining the EV6, we have a Light Long Range AWD with an MSRP of $51,795. Kia is offering a 24-month lease for $289 per month with $3999 due at signing. You get 10,000 miles per year on that one. This works out to an effective monthly payment of $456 per month or a total lease cost of $10,944.
Thus, the Hyundai is about $2,000 cheaper to lease over the course of the term, but in either case, these are super-cheap leases for cars that retail for $50,000.
Some brands have calculators built into their configurators that allow you to adjust your parameters accordingly, though keep in mind that any numbers you see online should be treated as an “estimate” as they often do not include tax and fees and local market factors may impact pricing as well.
I strongly suggest that lease shoppers engage in negotiations with dealers and request quotes in writing before setting foot into the showroom. That way, you can more accurately compare the numbers. Plus, many dealers advertise artificially low lease “deals” that are a way to get you into the store, and then saddle you with a much higher actual payment than you expected; we see this happen quite often.
Have a look at the chart below. I shopped for an Acura ZDX EV for a client. There can be a wide difference in what various dealers are willing to offer. And even though we request quotes for leases with zero down, not every dealer provides quotes in that manner, so we have to reconfigure the numbers for better comparisons.
Photo by: InsideEVs
A Purchase Could Be A Better Play For Hybrids and Plug-Ins
The reality is that a lot of folks don’t have a living situation that allows for home charging, and access to chargers across America is still a work in progress. Those buyers may want to reduce their fuel cost with a battery-assisted car, but not make the full jump to an EV. While leases are usually the way to go for fully electrified models, the programs for plug-in hybrids and standard hybrids may not be as compelling.
For example, the Honda Civic Hybrid is arguably one of the best cars you can buy right now in that $30,000 segment if an EV doesn’t work either from a lifestyle or logistics perspective.
Honda is currently advertising a Civic Sport Hybrid (MSRP $30,490) lease for $339 per month on a 10,000-mile-per-year, 36-month lease with $3,499 due at signing.
Photo by: InsideEVs
That works out to an effective payment of $436 per month, which isn’t terrible. However, when you look at a total lease cost of $15,696 (before tax and fees), the picture changes a bit. It is very unlikely that a $30,000 Civic is going to lose over half its value in three years with only 30,000 miles on the clock. Basically, you will have paid far more over the term of that lease than you should have.
A shopper would be far better off buying this car and taking advantage of Honda’s historically high residual values, even if they only planned on keeping it for a few years. Plus, Honda’s legendary reliability makes this a better purchase to hang onto for a while than many other options.
Despite the Civic Hybrid’s popularity, buyers can still score competitive deals. Here is a grid I worked up for a client where my team managed to find discounts at over ten percent off on the more well-equipped Touring trim.
Photo by: InsideEVs
Once again: It pays to shop around.
Don’t Count Out Used Cars
Across the entire budget spectrum, there are some fantastic used values in the pre-owned space, from $15,000 cars to ones retailing for six-figures and beyond. The tax credit applies to any EV under $25,000 that is at least two years old, provided you meet the income requirements.
The market for $25,000-and-under EVs is pretty aggressive, but great deals are out there on perennial favorites like the Chevrolet Bolt EV, Nissan Leaf and Tesla Model 3—the latter in particular is a kind of used deal king.
I have found that the sweet spot for used EVs currently is in the $30,000 to $35,000 range, as that seems to have the best balance of age, mileage, equipment, remaining warranty balance, and price. If you are shopping in this range, the tax credit is no longer a factor, so you don’t have to worry about the end-of-September deadline. And you can take advantage of EV depreciation to get something that was once quite expensive for comparably cheap; how about a $32,995 Mercedes-Benz EQE, a car that was probably well over $70,000 when new?
Shopping for a used car requires a bit of a different strategy than shopping for a new car. Most dealers don’t have a lot of wiggle room to move, and most dealers stand firm with their advertised price. This can be frustrating for buyers accustomed to negotiating prices down, but the key to finding a deal on a used car is to focus on the best value, not the biggest discount.
Let’s examine a sample of certified used BMW i4s under $35,000 in the DC metro area:
Photo by: InsideEVs
All three of these cars are within striking distance of each other in terms of price, with mileage at 15,000, 19,000, and 35,000, respectively. All three are eDrive 35 trims, but that doesn’t mean that their original retail price was the same. This is why it’s good to dive into the spec sheets and compare the MSRPs.
The Annapolis car with 19,000 miles had an original MSRP of $55,955, and the Mount Laurel car with 15,000 miles stickered in at $54,820. The Fort Washington car with 35,000 miles retailed for $55,345. BMW’s CPO warranty starts at the original service date. Both the Annapolis and Fort Washington cars were sold in May 2023, whereas the Annapolis car was sold in August 2023.
Examining a closer comparison between the three, we have the Mount Laurel car with 4,000 fewer miles than Annapolis, but $1,000 lower in specs; however, it does have an extra few months of warranty. The Fort Washington car has the highest mileage, yet is about $500 more than the Annapolis car, with a sticker price that is only $500 higher—both have the same warranty balance remaining.
While there really isn’t a wrong answer among these three, it appears that the Fort Washington car with the higher mileage is not as good a value as the other two. 2025 BMW i4 M50 Photo by: InsideEVs
As you can see, there are more variables to consider when shopping in the pre-owned market versus new, and buyers need to balance their desired equipment with other factors like mileage and remaining warranty.
Of course, advertised prices don’t always tell the whole story. Unfortunately, many used car dealers will post an online price that is very market competitive, only to add in a bunch of additional charges like “reconditioning fees” and “mandatory accessories.” This is why it is critical to get itemized quotes to really compare the value scores of various leads.
With the tax credits expiring and potential tariff-induced price increases on the horizon, now is a great time to score a deal on your next vehicle, whether it be a full battery EV or a fuel-sipping hybrid. The key to doing so comes down to your ability to compare prices, and don’t limit yourself to your local market, as often better deals can be found elsewhere.
Tom McParland is a contributing writer for InsideEVs who runs AutomatchConsulting.com. He takes the hassle out of buying or leasing a car. Got a car-buying question? Send it to Tom@AutomatchConsulting.com. More Best EV And Hybrid Guides
