As Ford Authority reported late last month, both Ford and General Motors were reportedly working to effectively extend the $7,500 federal EV tax credit for leases beyond its expiration date by signing dealers up for new programs. Those programs aim to use both automakers’ financing arms to make a down payment on qualifying models and initiate the purchasing process in existing inventory, after which dealers could pass the savings down to customers. However, it seems as if GM has opted to bail on that particular “loophole.”
According to GM Authority, Ford’s cross-town rival has indeed opted to scrap plans to extend the federal EV tax credit to consumers as it pertains to leased vehicles. Originally, it planned to apply this discount to around 20,000 EVs on dealer lots or in transit, all in an effort to prevent a big backup in terms of inventory, as most expect sales of electric vehicles to plummet temporarily following the sunsetting of that incentive at the end of September.
GM didn’t provide a reason as to why it changed course in that regard, but that decision was reportedly made after Senator Bernie Moreno voiced some concerns. However, Moreno stated that he was “happy that every car company” was in line with this shift. “I look forward to working with GM,” he said. “We’re putting a lot of policies in place to protect our domestic auto industry.” Notably, GM Financial was already in the process of applying down payments on EV inventory before this decision was made, and GM said it will still “fund the incentive lease terms.”
For now at least, it seems as if Ford will move forward with plans to offer customers this incentive on existing or in-transit inventory. Ford Credit previously stated that it’s working to provide EV customers with “competitive lease payments on retail leases” through the end of 2025.
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