Car-shopping marketplace Cars.com has released a report detailing the current landscape of the electric vehicle (EV) market as the federal EV tax credit is set to expire on September 30, 2025. With potential savings of up to $7,500 for new EVs and $4,000 for used models disappearing, consumers are accelerating their purchasing decisions to secure these financial benefits.
Awareness of the federal EV tax credit is notably high, with 70% of EV and plug-in hybrid shoppers acknowledging its existence. However, only 53% of these consumers are aware of the expiration date. An impressive 78% of shoppers indicate that the tax credit significantly influences their decision to transition to electric vehicles. Nearly half, or 47%, of potential EV buyers report that the impending end of the credit may hasten their purchase plans. This urgency is reflected in data showing a 33% increase in demand for new EVs and a 22% rise for used EVs on the Cars.com platform compared to the previous year.
According to Aaron Bragman, Detroit Bureau Chief at Cars.com, “The federal EV tax credit helped make EVs more affordable, and while its expiration at the end of September may slow demand in the short term, it doesn’t mean the end of affordable EVs.” He emphasized that shoppers are eager to secure savings with strong options still available, including the Hyundai Ioniq 6, Hyundai Ioniq 5, Kia EV9, and Chevrolet Equinox EV. Furthermore, many state and local incentives will continue, and several automakers have announced plans for new, lower-priced models.
Top EV Picks for 2026
With 77 EV models currently on the market, the editorial team at Cars.com has identified standout models for 2026 based on criteria such as value, usability, performance, and technological innovation. The top selections include:
– Best Value EV: 2025 Chevrolet Equinox EV
– 2-Row SUV: 2026 Hyundai Ioniq 5
– 3-Row SUV: 2026 Kia EV9
– Electric Car: 2025 Hyundai Ioniq 6
– Luxury EV: 2026 Lucid Air
– Pickup Truck: 2026 Chevrolet Silverado EV
These models were selected for their range, affordability, family-friendliness, and innovative features, all of which resonate with consumers navigating a changing market landscape.
Market Trends and Consumer Behavior
New EV inventory saw a modest growth of 1.4% year-over-year in August 2025. While manufacturers like Chevrolet and Honda have reduced supply due to previous EV launches, many other brands have expanded their offerings. Average prices for new EVs escalated by 4.1% year-over-year, largely attributed to the introduction of more premium models.
On the used vehicle side, inventory surged by 38% year-over-year, resulting in a total of 97 models available. Notably, vehicles are selling faster; the average time on the lot decreased from 66 days to 46 days compared to last year. Tesla, which represents about one-third of used EV listings, experienced a decline in average prices by 16.2% year-over-year, contributing to an overall drop of 3.8% in the average price of used EVs.
As the deadline for the federal tax credit approaches, consumers are increasingly motivated to make informed decisions about their electric vehicle purchases. With a range of options still available and ongoing incentives from various sources, the transition to electric vehicles remains a significant trend in the automotive market.
Cars.com, recognized as the leading automotive marketplace, attracts nearly 26 million in-market consumers each month, providing essential resources and tools for buyers to navigate their vehicle purchases effectively.
