EV Credit Rules Could Slow Sales
Newly released U.S. guidance would eliminate models with Chinese material.
Higher cost of EVs compared to internal-combustion-engine models is a big factor in slower U.S. adoption compared to other regions.
IMAGE: Pexels/Kindel Media
Guidance released by the Biden administration clarifies rules governing electric-vehicle tax credits.
Limits around the credits aimed at curtailing China’s EV supplies dominance reduce the number of EVs that qualify.
The fullest possible credit of $7,500 per new EV purchase would go only to vehicles without battery material originating in China or other countries on the U.S. hostile list, or “foreign entities of concern,” which also includes the likes of North Korea and Russia.
Though the administration is trying to increase EV adoption in the U.S., where many consumers have continued to resist switching from gas-powered vehicles, the guidance would likely slow that very shift by limiting the number of models that qualify for tax breaks.
EV adoption, at 8% in the U.S. in the third quarter, still lags the pace in Europe, where EVs now make up 14% of market share. Higher cost of EVs compared to internal-combustion-engine models is a big factor.
Carmakers have recently downshifted their EV production plans due to sales proving slower than they’d expected.
Originally posted on Auto Dealer Today
More F&I
Integrating Nontraditional F&I Products
The niche presents a strategic advantage for auto dealerships as they move to adapt to fast-changing consumer expectations in today’s market.
Read More →
Trust Is Personal
Technology, no matter how efficient, can’t replace what the human F&I manager can do, which is to bridge the divide between cyberspace and the in-store experience.
Read More →
Amplify 2026 Billed as Turning Innovation Into Results
Reynolds and Reynolds says its annual retail summit will connect dealers with practical strategies, peer insight, and technology-driven ideas.
Read More →
Own Your Outcome: F&I in the Digital Customer Journey
Finance has historically been the last step in the car-buying process, but it doesn’t have to be. The customer’s journey starts long before they arrive at the dealership, and so should F&I’s involvement.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Lifetime Battery F&I Product Meant to Drive Dealer Traffic
EFG Cos. offering is intended to create lifetime auto dealer engagement with customers.
Read More →
The Psychology Behind Menus That Increase Add-On Sales
There is a science to crafting a menu that gives customers confidence in the choices presented, and moving the process outside the F&I office can further boost results.
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Auto Consumer Anxiety Presents Opportunity
A survey of U.S. drivers found the majority are concerned about finances and the economy, but those fears make many ready to buy vehicle-protection products.
Read More →