FI showroom red and grey logo
MenuMENU
SearchSEARCH

EV Tax Savings Tabulated

U.S. says $1 billion-plus saved by buyers since the new year, tallies lifetime savings versus gas-powered ownership.

June 12, 2024
EV Tax Savings Tabulated

Transferring credits to the auto dealer, essentially giving buyers a down payment rather than the consumer waiting to get the money back at tax time, has been popular.

Credit:

Pexels/Dids

2 min to read


More than $1 billion in federal tax credits have gone to electric-vehicle buyers across over 150,000 sales this year so far, the U.S. treasury department said.

It said the EV sales volume means buyers save $1,750 on average per year on fuel and maintenance, or $21,000 in a typical 15-year vehicle lifetime, compared to costs for a gas-powered vehicle.

Ad Loading...

The point-of-sale credits are intended to encourage EV sales as a way to reduce polluting emissions. Qualifications for the tax breaks had been restricted since Jan. 1 to vehicles whose materials aren’t sourced from “foreign entities of concern,” in particular China, which has a corner on certain EV battery materials. But this spring, the treasury department delayed enforcement of the restrictions to 2027.

“This discount is increasing consumer choices and creating new opportunities for companies to expand their customer base,” said treasury secretary Janet Yellen in a press release on the cumulative consumer savings this year.

The credits can help bridge the gap between higher prices of EVs compared to gas-powered models.

Transferring them to the auto dealer, essentially giving buyers a down payment rather than the consumer waiting to get the money back at tax time, has been popular, according to the department, which says 90% of those who’ve bought new EVs and 80% who’ve bought used models have opted for that method.

LEARN MORE: EVs Get More Affordable

Originally posted on Auto Dealer Today

More Auto Finance

A fan of $100 bills sitting on a white envelope
Auto Financeby Hannah MitchellAugust 12, 2026

July Was Hot for Auto Borrowers

Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.

Read More →
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Financeby Lauren LawrenceAugust 12, 2026

Dealer Lender Preferences Revealed

When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.

Read More →
man sitting at desk using a calculator
Auto Financeby Lauren LawrenceAugust 10, 2026

Auto Refi Savings Surge

Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.

Read More →
Ad Loading...
Tiny toy car in front of small stacks of coins
Auto Financeby Hannah MitchellAugust 5, 2026

Subaru Enters Lending Business

The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.

Read More →
Man climbing ladder in front of mountain landscape.
Auto Financeby Lauren LawrenceAugust 3, 2026

Positive Equity Reaches Record High

Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.

Read More →
Photo of document next to calculator and inkpen
Auto FinanceJuly 20, 2026

Dealerships Are Paying the Price for Extended Car Loans

Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.

Read More →
Ad Loading...
silver car in background with hand in front holding out a set of keys, Trade-In Trouble, F&I and Showroom
Auto Financeby Lauren LawrenceJuly 20, 2026

Trade-Ins in Negative Equity Reach New Heights

As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.

Read More →
Two men in suit jackets shaking hands in front of a new-looking white vehicle
Auto Financeby Hannah MitchellJuly 15, 2026

Auto Credit Plentiful

June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.

Read More →
Woman's hands holding an wallet empty of cash
Auto Financeby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Ad Loading...
Three men smiling for headshots
Auto Financeby Lauren LawrenceJuly 1, 2026

Porsche Financial Services Shifts Structure

After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.

Read More →