🚨 The Clock is Ticking on Federal Tax Credits

First things first: September 30, 2025 is the last day to lock in a federal EV tax credit under current law. This includes:

• Up to $7,500 off new EVs with restrictions on models, or no restrictions for new EV leases
• Up to $4,000 off used EVs priced under $25,000 and without a sale after 8/21/22

Importantly, you don’t need to take delivery of the vehicle before that date. According to recent clarification from the IRS, all you need is a signed contract and down payment in place before the deadline. The credit can be applied at the time of purchase as an instant rebate at a qualifying dealership, provided the car and buyer qualify -- and Recurrent highly recommends you cash in that credit at the time of sale, rather than on your taxes next year.

This means you can potentially walk off the lot with thousands off the sticker price—even if your vehicle arrives weeks or months later. But you must act before September 30.

Another good thing to know? Inventory is flying off the lots, so shop now for the best availability.

⚡ Should you go new? It's a Good Time to buy or lease

Getting a new car directly from the car manufacturer or a dealership can be a fun experience. You’re the first person to sync your phone, set your presets, and break in the seats.

New EV buyers can cash in on savings before the September 30 deadline. To buy a new EV with the credit, there are battery sourcing and assembly requirements. Because of this, many EV shoppers opt to lease, which is an easier way to apply the $7,500 credit. In the run up to the tax credit ending, manufacturers and dealers are offering great lease deals, in addition to amazing purchase incentives.

The selection of affordable new EVs has expanded in 2025, with strong options like:

• Chevy Equinox EV starting under $35K
• Hyundai Ioniq 5's award winning design and vehicle-to-load standard
• ‍Kia EV6 lease deals for just $209/month, or the Prologue EV as low as $99/month
• Ford Mach-E with amazing perks, like 0% APR for 72 months

If your budget allows and you want the newest tech, buying new—before the tax credit disappears—is still a savvy move. But after the deadline, even new EVs could see price hikes or limited supply as the market readjusts and manufacturers slow.

New EV Considerations: 

Since many of the new EVs you can buy are cutting edge technology or built on entirely new platforms, there may be growing pains associated with a brand new model or software. While the cost to fix these issues are generally covered by the warranty, they can still be a headache to fix.

📉 Should you buy a used EV? Prices Are Down and Inventory Is Modern

Some big perks:

While new EVs still capture most of the headlines, the used EV market is quietly booming, with better cars, lower prices, and more selection than ever.

According to Recurrent's 2025 market report, a full 73% of used EV listings are from model years 2021 or newer, with over 90% from the post-2016 era, when EV batteries became more durable and range expanded

That’s a major shift from just a few years ago, when used EV options were often older compliance cars with limited range and outdated tech.

Combine this fresh inventory with softened used car pricing across the board, and shoppers will find many used EVs selling for $20K–$25K, or less with federal credit applied.

💡 Learn more in Recurrent’s research on used EV pricing

And remember: used EVs don’t have the same battery degradation as your phone. In fact, Recurrent’s real-world battery health data shows that most late-model EVs retain 85–90% of their original capacity, even after 5+ years on the road.

Other Perks of Used EVs

• No matter how you slice it, a used EV is "greener" than a new one. Since most of the carbon footprint associated with electric vehicles come from making the battery, once it’s produced, it is very low carbon – even if your local power runs on coal.
• Another thing that sets a used EV apart from a used ICE is that EVs wear and age much less quickly than their cousins, so you don’t see the same age-related failures and maintenance issues as you do with a 5+ year old gas car. 
• Finally, many of the new-car bugs are worked out. Someone else had to deal with the recalls and replacement parts, and it’s now smooth sailing.

The considerations: 

The older the EV, the less remaining warranty on the parts and battery. Some of the tech may be a bit older (but not necessarily), and features like charging speed may not be industry leading. Of course, you can buy a new EV from 2025 these days, so shop around.

🧠 Which Should You Choose: New or Used?

There’s no one-size-fits-all answer, but here are a few quick rules of thumb:

If you…

Want the best deal under $25K... consider a used EV (under $21K with a $4,000 credit)

If you...

Want the latest features or longest range...consider a new EV with a $7,500 credit

If you…

Don’t want to make a commitment...lease a new EV with amazing lease deals

If you…

Need reliable transportation ASAP...look at available used EVs near you

If you…

Want the right car more than any old car...order a new EV before September 30 to get the rebate - and exactly the car you want

✅ Final Take: This Is the EV Moment We’ve Been Waiting For

Electric cars have always promised lower fuel costs, lower maintenance, and a quieter, more responsive drive. But with a maturing used EV market and the soon-to-expire federal tax credit, they now come with something else: a great deal.

Whether you’re eyeing a gently used Tesla Model 3 or a brand-new Chevy Equinox EV, now is the time to act. Get a down payment & the paperwork by September 30, 2025, and you’ll lock in the best prices EVs have seen in years.