Expiring EV federal tax credit brings rush of buyers to Bay Area dealerships

By CBS Bay Area

The expiration of a $7,500 federal credit for electric and plug-in hybrid vehicles on Tuesday turned into an EV buying frenzy at Bay Area auto dealerships.

For car buyers and sellers alike, the final day of the federal EV tax credit was a busy one. At the Audi dealership in Oakland, general manager Daniel Kosset has spent decades in the business and thought he’d seen every kind of promotion.

“There’s always the ‘end of the month, best deal’ kind of thing,” said Kosset. “But in 20 years of being in this business, I have never seen a run like this.”

The federal credit introduced in 2022 under the Inflation Reduction Act, the incentive gave buyers $7,500 off new EVs and plug-in hybrids and $4,000 off used ones.

But earlier this year, the Trump administration’s “Big Beautiful Bill” set in motion the end of the deal. The expiration date was September 30.

Kosset said a month ago, the dealership had about 75 electric vehicles on the lot. By deadline day, almost none remained.

“When incentives like this come out, once they leave, they almost never come back,” he said.

Gov. Gavin Newsom has confirmed there won’t be a new rebate replacing the credit. That has Audi and other automakers reevaluating their sales strategies.

“Audi was really betting on 60% of their sales being EVs,” Kosset said. “That will bring adjusting. And there will be more gas units sold just for affordability.”

For buyers, Kosset’s advice was clear: “If you want an EV, get it now. It will definitely be cheaper to buy today than it will tomorrow.”

For anyone still trying to make the deadline, the requirement was simple: a signed agreement or payment in place before midnight.