Sales of electric and hybrid vehicles in the United States have jumped by about 30% since early summer as consumers rush to take advantage of federal tax credits that expire at the end of September, according to CARFAX data.
The surge contrasts with the broader U.S. auto market, which has remained relatively steady. CARFAX said the looming end of incentives under the Inflation Reduction Act has spurred buyers to act before the Sept. 30 deadline. The program provides credits of up to $7,500 for new EVs and certain plug-in hybrids, and $4,000 for qualifying used models.
Despite the sharp rise in demand, CARFAX noted that average prices for EVs and hybrids have not increased significantly. Analysts said this presents a rare opportunity for buyers ahead of the phase-out.
CARFAX also urged prospective used EV and hybrid buyers to research vehicle history reports, remain flexible on models, take test drives, and request pre-purchase inspections to assess battery health and overall condition.