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

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

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