With the federal electric vehicle (EV) tax credit set to expire on September 30, a last-minute buying frenzy is sweeping through the auto industry and consumers. Manufacturers and dealers are competing fiercely to clear remaining inventory with aggressive discounts and financing incentives.

According to the government on the 24th, as part of the massive tax cut legislation dubbed the “Big and Beautiful One Bill” signed by President Donald Trump on July 4, the EV tax credit of up to $7,500 will end on September 30. This tax credit, introduced under the 2022 Inflation Reduction Act (IRA), has been a key driver of EV adoption across the U.S. in recent years.

Automotive media and local dealers report that most EV manufacturers, regardless of nationality, are offering substantial discounts, including low-cost lease programs. Chrysler’s Pacifica Plug-in Hybrid is available for a 39-month lease at $499 per month with a $3,999 down payment upon purchase. It also offers a 72-month zero-interest financing plan and an additional $5,250 cash discount upon purchase. Cadillac is providing up to $1,250 in “Costco member discounts” across all its EV models. Audi offers the Q4 e-tron with financing at a 0.99% annual percentage rate (APR) for up to 72 months and a $3,000 bonus cash incentive.

Hyundai, Kia, and Genesis are also rolling out aggressive financing offers. Hyundai’s Ioniq 9 is available for a 36-month lease at $419 per month with a $4,999 down payment. Purchases come with up to 60 months of financing at 1.99% APR, and a $5,000 discount is offered for dealer inventory purchases. The Ioniq 5 is available for a 24-month lease at $179 per month with a $3,999 down payment, and dealer inventory purchases qualify for a $7,500 discount.

Genesis’ GV60 is offered for a 33-month lease at $319 per month, with a $10,000 bonus cash for purchases and zero-interest financing for up to 60 months. Kia’s EV9 is available for a 24-month lease at $399 per month with a $3,999 down payment, offering zero-interest financing for four years and $5,000 bonus cash for purchases. The Niro EV is available for a 24-month lease at $149 per month with a $3,999 down payment, and purchases come with a $7,500 bonus cash.

According to a recent analysis by Kelley Blue Book, EV sales accounted for 9.9% of total vehicle sales in August, a record high, up 0.8 percentage points from 9.1% in July. The Korean American community is also seeing a surge in last-minute purchases before the tax credit expires. A 35-year-old resident near LA, identified as A, said, “I’ve been eyeing an EV since last year, but with the tax credit ending, I couldn’t delay any longer and signed a contract this week.

”The concern is that a “sales cliff” is expected after the tax credit expires. Without the credit, consumers will face significantly higher upfront costs, and once dealers exhaust their current inventory, discount incentives are likely to shrink rapidly. There are also worries that, starting next year, inventory pressures, tariff increases, and parts supply issues could make it challenging for manufacturers to maintain current pricing. One dealer representative noted, “It’s now or never to buy an EV under these conditions. Once the tax credit is gone, the consumer burden will increase significantly.

”By Hongyong Park