Rush to Buy: The End of the $7,500 Electric Vehicle Tax Credit

The Last Days of a $7,500 Savings

The atmosphere has been buzzing in Northeast Ohio’s car dealerships. With the electric vehicle tax credit slated to end on September 30, local dealers like Cascade Auto in Cuyahoga Falls report a significant uptick in sales—but with limited inventory.

Dealers Face Lean Inventories

According to Pat Primm from Cascade Auto Group, “The inventories are getting a little low, so you might not get the exact color you want, but there are a few left here and there, and we will gladly go out and get them.” This scarcity has led to a surge in EV sales, from the usual 9-10% up to an impressive 25-30% in the Midwest.

Politics Behind the Expiration

The upcoming expiration was sealed by June’s Republican tax bill. Senator Bernie Moreno highlighted the absurdity of wealthy individuals receiving government incentives for luxury electric cars, arguing against such a taxpayer burden.

A Rush, But Not a Stampede

Lou Vitantonio, president of the Greater Cleveland Auto Dealers Association, notes that while there’s a steady flow of sales, it hasn’t reached a frenzy. “We’re not seeing a massive rush because the inventories have kind of fallen off,” Vitantonio explained.

Grasping the Final Opportunity

Still, there’s a silver lining: Under IRS guidelines, customers can order a vehicle, sign the contract before Tuesday, and still qualify for the $7,500 credit upon its delivery.

The Ticking Clock

Dealerships like Valley Motor City continue to see a last-minute rush. However, concerns linger about future sales once the credit expires. Viantonio posits that the end of the year might see only modest growth compared to earlier booms.

Time to Act: No More Procrastinating

For those eyeing an electric vehicle, the consensus from auto dealers rings clear: cap off your indecision and leap at the opportunity before “it’s time to get moving,” says Primm. “No more procrastinating!” According to News 5 Cleveland WEWS, procrastination might cost potential EV buyers more than they anticipate, reinforcing the urgency to act now.

In conclusion, this moment marks a pivotal point for both buyers and dealers. The assurance of a tax credit and the chance to contribute to a sustainable future beckon, but the window is rapidly closing.