Big Automakers Found a Clever Workaround for the EV Tax Credit, Then Quickly Abandoned It

When the federal government ended the $7,500 EV tax credit on September 30, 2025, General Motors and Ford thought they had figured out a way to keep the savings flowing to customers. Their finance divisions would buy up dealer inventory before the deadline, claim the credit, and pass those savings to lease customers for months to come. Political pressure killed the plans almost as fast as they were announced.

• GM and Ford initially used their financing arms to make down payments on EV inventory before the September 30 deadline, allowing them to claim the tax credit and extend it to lease customers
• Both automakers consulted with the IRS and confirmed the strategy was legal before moving forward with their programs
• Republican Senator Bernie Moreno from Ohio pressured both companies to abandon the programs in early October, leading them to cancel within days of the announcements

How the EV Loophole Actually Worked

The strategy was pretty brilliant when you think about it. GM Financial and Ford Credit would buy vehicles from their own dealer networks by making down payments before the tax credit expired. According to IRS guidance, buyers could claim the credit if they entered a binding contract and made a payment before September 30, even if the actual vehicle delivery happened later.

GM Financial started making down payments equal to about 5% of vehicle prices on models sitting in dealer inventories. The plan covered around 20,000 electric vehicles across Chevy, GMC, and Cadillac brands. Ford Credit was doing something similar with models like the F-150 Lightning and Mustang Mach-E. The financing arms would get reimbursed for the $7,500 credit from the federal government, then build those savings into better lease deals for customers.

For shoppers, the experience would have been straightforward. Walk into a dealer in October or November, lease a Silverado EV or Equinox EV, and still benefit from the now-expired tax credit baked into your monthly payment. GM originally planned to run the program through the end of 2025, while Ford set a December 31 deadline.

Why This Matters for Electric Truck Buyers

The timing was terrible for GMC electric vehicles and other EVs on dealer lots. Both automakers had just posted record third-quarter EV sales. GM delivered over 66,500 electric vehicles between July and September, while Ford moved 30,612 units. Dealers were stocked up, expecting continued strong demand.

Ford CEO Jim Farley warned that electric vehicle market share could crash from around 13% down to just 5% without federal incentives. That’s a massive drop. Having this workaround would have given dealers breathing room to move inventory without taking huge losses.

Models like the GMC Sierra EV, Hummer EV, Blazer EV, and the newly affordable Equinox EV (starting under $35,000) were all set to benefit. These vehicles were already becoming competitive with gas-powered trucks and SUVs, and keeping the $7,500 discount would have made them even tougher to resist.

Political Pressure Kills the EV Deal

Enter Bernie Moreno, a freshman Republican senator from Ohio who made his fortune selling car dealerships. He got wind of the programs and wasn’t having it. Moreno met with executives from both GM and Ford, arguing they were exploiting a loophole in legislation that was supposed to sunset cleanly on September 30.

Within days of announcing their programs, both companies backed down. GM issued a statement saying it had decided not to claim the tax credit after further consideration. Ford followed suit shortly after. Neither company explicitly blamed political pressure, but the timeline tells the story.

GM pivoted to self-funding about $6,000 in lease incentives, but only through the end of October. Ford said it would maintain competitive lease rates through other means, including 0% APR financing for 72 months through Ford Credit.

What Happens Now

Other automakers like Hyundai, BMW, and Stellantis are still offering their own cash incentives to help offset the loss of federal support. Without the $7,500 credit though, there’s no question that EVs just got harder to sell.

The whole episode shows how fragile electric vehicle policy remains in the United States. Automakers invested billions in electric vehicle development based partly on federal incentives that helped bridge the price gap with traditional vehicles. When those incentives disappear overnight, it throws a wrench into carefully laid plans.

GM is betting big on affordable electric vehicles, including bringing back the Chevy Bolt in 2027. The company already offers one of the cheapest electric vehicles in America with the Equinox EV. Making the business case work gets a lot harder though when you’re competing against gas vehicles without any federal help on your side.

The Bottom Line for EV Shoppers

If you were counting on this extended tax credit for a new electric truck or SUV lease, you’re out of luck. The workaround lasted about a week before political reality shut it down. Some dealers might still have competitive lease deals running on existing inventory, but the $7,500 federal discount is truly gone now.

Your best bet is shopping around for manufacturer incentives and dealer discounts. Companies that are serious about moving electric vehicles will find ways to make the numbers work, even without Uncle Sam’s help. Just don’t expect the same jaw-dropping deals we saw in September when buyers rushed to beat the deadline.

The silver lining? Some automakers are stepping up with their own money to keep prices reasonable. Check what’s available in your area because deals vary widely by brand and region right now.