Ford and GM Offer $7,500 EV Lease Savings After Tax Credit Ends

Key Takeaways

1. Ford and GM plan to offer up to $7,500 in savings for electric vehicle leases before the federal tax credit program ends on September 30.

2. Both companies will purchase dealer inventory through down payments, allowing financing branches to qualify for the federal incentives.

3. Lease savings will be available through Ford Credit until the end of 2025.

4. The plan was developed after discussions with the IRS, but it’s unclear if other automakers have similar agreements.

5. The IRS confirmed that drivers can still qualify for the incentive by making a commitment, like a deposit, even if the purchase occurs after the September deadline.

Ford and GM have set up plans for potential buyers to still obtain as much as $7,500 in savings when they lease electric vehicles (EVs). This is happening just before the 17-year-old federal tax credit program is due to end on September 30.

How the Program Works

The American car manufacturers are essentially starting the process by purchasing dealer inventory through down payments. This means the financing branches of both companies will be eligible for the $7,500 federal incentives. Consequently, dealers will continue to provide leases as they usually do, including the savings in the offers. This approach allows customers to benefit from the rebate for a few months even after the September deadline.

Availability of Lease Savings

As stated by Ford, these lease savings will be accessible through Ford Credit until the close of 2025.

Reports from Reuters indicate that Ford and GM created this plan after discussions with the Internal Revenue Service (IRS). It remains uncertain if other automotive manufacturers have reached similar agreements.

IRS Clarification

In a related note, the IRS had previously confirmed that drivers could still qualify for the incentive by making a commitment, like putting down a deposit, even if the final purchase occurs after the September 30 deadline.

The federal tax credit came to an end following US President Donald Trump’s signing of the tax bill in July. This program was intended to encourage the adoption of electric vehicles across the country.

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