The electric vehicle (EV) market is heating up, with automakers offering generous incentives to spur sales. According to Cox Automotive, the average EV incentive in February amounted to 14.8% of the segment’s average transaction price, translating to an $8,162 discount. This is more than double the average for the overall new-vehicle market.
Cut-rate financing deals are also widespread, with many models offering loan rates as low as 0.0% for four, five, and even six-year terms. Audi, for example, is offering cash rebates of $12,000 and $11,000 on the 2024 RS e-tron GT quattro and Kia EV9, respectively. In some cases, automakers’ incentives stack on top of the one-time $7,500 federal tax credits for models that still qualify.
These credits apply to EVs meeting domestic content and assembly restrictions, transaction price limits, and household salary thresholds.
Ev incentives and tax credits
Starting January 1, EV buyers can choose to claim the tax credit on the following year’s tax return or have it deducted directly from the transaction price.
Many import brands, which do not qualify for the federal EV tax credit, are using their leasing programs to level the playing field. The Inflation Reduction Act extended credits to commercial fleets, including automakers’ captive financing arms, without limitations, allowing lessees to benefit. Some of the best EV cash-back rebates and financing deals for March include:
Acura ZDX: $7,500 tax credit
Audi e-tron GT quattro: $7,500 cash back, or 0.99% financing for 60 months
Chevrolet Equinox EV: $7,500 tax credit plus 0.0% financing for 60 months
Ford F-150 Lightning: $7,500 tax credit (Flash, Lariat, and XLT trims) plus $3,000-$5,000 cash back
Hyundai Ioniq 6: $7,500 cash back, or 0.0% financing for 60 months
Kia EV9: $11,000 cash back, or 0.0% financing for 72 months plus $2,000 cash back
Nissan Ariya: $7,500 cash back, or 0.0% financing for 72 months
Tesla Model 3: $7,500 tax credit plus 0.0% financing for 60 months
It’s important to note that automakers’ incentives vary by region to address supply and demand issues.
Always check individual brands’ websites under local values or special offers tabs for local incentives. These financing deals typically require top-tier credit scores and qualifying incomes. As the EV market continues to grow, expect to see more attractive incentives from automakers looking to boost sales and capture market share.
With the combination of federal tax credits, state incentives, and dealer discounts, now may be a great time to consider making the switch to an electric vehicle.