20
Ford & GM Keep EV Tax Credits Alive Through Dealer Inventory Purchases
Date: October 1, 2025
Source: Gadget Review – Annemarije de Boer
Ford and GM have implemented a clever strategy to preserve $7,500 federal EV tax credits for customers even after the September 30 expiration deadline. They achieve this by purchasing their own dealer inventory before the cutoff.
Key Takeaways
- Automakers’ Strategy
- Ford Credit and GM Financial buy dealer EV inventory before September 30.
- This qualifies the vehicles for expired federal tax credits in IRS terms.
- Vehicles are then leased to retail customers through December 2025 at pre-expiration pricing.
- Customers benefit from full $7,500 subsidies, lowering monthly lease payments.
- How It Works (Financial Engineering)
- Binding contracts and down payments on dealer lots happen before the IRS cutoff date.
- The finance arms become the legal first owner under IRS guidance.
- Automakers coordinate with IRS officials to ensure compliance.
- Lease payments reflect tax credits as if the vehicles were purchased before expiration.
- Customer Experience
- Customers experience no change in leasing process.
- Dealers continue offering $7,500 credit benefits on qualifying EVs.
- Ford adds an extra $1,000 dealer incentive for qualifying leases through December 2025.
- GM allows dealer participation up to September 30 to maintain credit eligibility.
- Impact on the Market
- Traditional dealer networks gain a competitive advantage over direct-sales EV brands like Tesla.
- Direct-sales companies cannot replicate this strategy due to lack of independent dealer networks.
- Other automakers (Hyundai, Kia, VW, Toyota) have not broadly adopted similar tactics.
- Once eligible dealer inventory runs out, tax credit benefits disappear and lease prices may rise.
- Implications for Shoppers
- EV lease deals through participating dealers remain attractive through year-end.
- Customers should act quickly—inventory is limited.
- The regulatory workaround provides temporary savings but is not a permanent solution.
Summary Table: Key Details
| Feature/Aspect | Ford & GM Strategy |
|---|---|
| Method | Buy dealer EV inventory before Sept 30 deadline |
| Purpose | Preserve $7,500 federal EV tax credits |
| Customers’ Benefit | Lease EVs at pre-expiration pricing through Dec 2025 |
| IRS Compliance | Legal first ownership via down payments & contracts |
| Extra Incentives | Ford: +$1,000 per qualifying lease |
| Direct-Sales Brands (Tesla) | Cannot replicate the strategy |
| Duration of Advantage | Until pre-deadline inventory runs out |
Bottom Line
Ford and GM have leveraged financial engineering and dealer networks to extend EV tax credit benefits for customers. This creative approach ensures cheaper EV leases through December, while giving traditional automakers an edge over direct-sales competitors. Shoppers should act quickly as inventory is limited, and lease prices are likely to rise once eligible vehicles are gone.
