Drivers rush to dealerships before credit deal disappears on September 30 – leases dropped as low as $9 a month

PENNY-pinching drivers are rushing to dealerships to take advantage of EV lease deals before the federal tax credit expires later this month.

Bundling federal and state incentives has brought lease prices as low as $9 a month, which has driven a mighty surge in EV sales.

Getty

A Volkswagen dealership has been doing a roaring trade on EVs in recent times thanks to a credit deal[/caption]

Getty

Dealerships have aggressively marketed the discounts while they last[/caption]

Getty

Some dealers even began advertising a $9-a-month lease on deal a two-wheel-drive VW SUV[/caption]

This is especially the case in Colorado, where dealerships have aggressively marketed the discounts while they last, according to CPR.

The federal tax credit, worth up to $7,500, is set to expire on September 30, prompting dealerships like Emich Volkswagen in south Denver to see packed showrooms filled with bargain-hunting motorists.

Scott Nelson, a real estate broker and customer, shared that he had wanted an EV for years but only started taking test drives after realizing these local deals wouldn’t last much longer.

“It was on our radar, but this definitely sped up the timeline,” Nelson told reporters.

After test-driving a Volkswagen ID.4 in early August, Nelson pre-ordered the vehicle to lock in the cheaper lease pricing – even if the car arrives after the deadline.

Emich Volkswagen initially offered the VW ID.4, a compact crossover SUV, for $39 a month before sales tax in August.

But starting September 1, the dealership began advertising an even cheaper $9-a-month lease on a two-wheel-drive version of the SUV.

To heighten the urgency, the Emich Volkswagen website displayed a countdown timer marking the days, hours and minutes until September 30 – the expiration date for the federal EV tax credit.

This urgency stems from federal climate policy changes, which was initially introduced under President Biden as part of efforts to combat climate change, but was later revoked under President Trump’s One Big Beautiful Bill Act.

The impending expiration has caused a spike in EV sales nationally – although dealers remain uncertain about how busy they will be once the incentives disappear.

On a national scale, forecasts predict up to 38% fewer EVs on the road by 2035 without the federal tax credit.

In addition to the federal tax credit expiration, Colorado has been reducing its state EV tax credit due to revenue shortfalls.

The incentive, previously $5,000, was reduced to $3,500 in 2025 and is set to decline further to $750 by 2026.

These reductions are expected to slow Colorado’s EV market, which had seen it briefly overtake California as the top state for EV adoption.

The combined loss of financial incentives from both state and federal governments, amounting to $11,700, means buyers will no longer be able to access these savings once the EV programs are reduced or taken away.

Together, these changes mean buyers will miss out on major financial savings that have made EVs more affordable.

Matthew Groves, president of the Colorado Auto Dealers Association, expressed concern that fewer discounts will make EVs more expensive, which could hurt dealerships that rely on volume sales for profitability.

Groves said: “Anything that makes cars more expensive is bad for dealers.”

Colorado dealerships have been seen as leaders in leveraging EV incentives to attract customers.

Boulder Nissan, for example, offered leases as low as $9 a month for the Nissan Leaf last summer – which resulted in record-breaking sales numbers.

Ed Olsen, sales manager at Boulder Nissan, reflected on the dealership’s success.

“It’s been such a good ride over the last year and a half or so,” he said.

Now, Olsen is working to sell or lease all EV inventory – including multiple Nissan Ariyas – before September 30.

After that, he believes his dealership will return to its original business model of selling gas-powered cars and used vehicles.