Carfax data shows EV, hybrid sales up 30% as tax credit expiration date nears
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Time is running out fast, and Carfax says car shoppers have been acting accordingly.
The provider of vehicle history reports said its data shows consumers are racing to buy electric vehicles before the federal tax credit for new and used EVs and some plug-in hybrids expires at midnight Tuesday.
The data, from Carfax Car Listings and other sources that report to Carfax, found EVs and hybrids selling about 30% faster than they were at the beginning of summer, while prices have changed little. Meanwhile, overall vehicle sales have remained mostly held steady, contrary to analysis that has shown EV and hybrid sales trends typically align with overall vehicle sales.
Carfax said that illustrates a “major shift in consumer buying behavior” from sales patterns over the past few years.
“EV and hybrid sales are spiking, yet prices remain stable,” Carfax editor-in-chief Patrick Olsen said. “For shoppers considering a purchase, experts say now is the time to act.”
The Inflation Reduction Act included incentives for EVs and some plug-in hybrids, with tax credits up to $7,500 for new models and $4,000 for used. This summer, Congress voted to eliminate the credits, setting Sept. 30 as the final day for eligible purchases to qualify.
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Carfax offered tips to navigate the used EV and hybrid car market.
Research: Check a vehicle history report for accident history, service records and past ownership.
Budget: Explore financing options early and stay open to different makes and models that fit your price range.
Test drive: Experience the performance, comfort and features before buying.
Questions: Ask about the car’s history, pricing, recent repairs, upgrades, battery health, charging options, warranties and accessories.
Inspection: Have a trusted mechanic do a pre-purchase inspection.