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- Policy uncertainty creates "once-in-a-lifetime" opportunity to buy an EV, says J.D. Power
Policy uncertainty creates "once-in-a-lifetime" opportunity to buy an EV, says J.D. Power
With the $7,500 EV tax credit on the chopping block, dealers and buyers both know the clock’s ticking. (2 min. read)
Marcus Amick
May 08, 2025
A new report by J.D. Power reveals that if you’re in the market for an electric vehicle, right now could be a uniquely advantageous time to buy.
The details: The Trump Administration’s proposed plans to eventually remove the $7,500 federal EV tax credit makes this an ideal time to roll into a new electric vehicle.
The current average transaction price for a new battery-electric vehicle (BEV) is $45,600, which is only $500 higher than the average transaction price for a non-BEV—making going electric less painful on the pocket.
That average BEV transaction price will shoot up to $51,200 if the Trump Administration decides to pull that federal tax credit (more likely when), and potentially tick up even higher if due to tariff costs.
Currently, there are about 137,000 new electric vehicles sitting at dealerships around the country that are still eligible for the federal tax incentive—eagerly awaiting a buyer.
Why it matters: As J.D. Power notes, the current EV market is wide open for car buyers on the hunt for a new vehicle and dealerships looking to move product in the sector—before those tariffs really start to take hold.
Between the lines: Albeit at a slower pace, electric vehicles continue to gain traction in the market—even amid looming regulatory uncertainty and growing economic concerns.
Total market share for BEVs climbed to 9.5% through the first quarter of 2025, up 18% from the same period last year, and slightly ahead of J.D. Power’s forecast for stagnant growth this year.
Most of the surge is being driven by mass market franchise sales, which rose 58% in 2024, climbing to 376,000 vehicles sold in total.
The electric vehicle market—which has expanded significantly in recent years—now includes over 60 different BEV models on sale in the U.S.
Bottom line: Let's face it—dealers need to move fast while the getting's good. With tax credits on the chopping block, smart dealerships are pushing low monthly leases and getting customers comfortable with EV ownership to clear aging inventory before the rules change.
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