On the Dash:
- Ford is canceling its dealer EV lease program linked to the expired $7,500 federal credit but will maintain competitive lease offers.
- The move follows GM’s similar cancellation and underscores the challenges automakers face in sustaining EV demand without federal incentives.
- Some automakers offer alternative incentives, while industry experts remain divided on how much the credit’s expiration will affect EV sales.
On Thursday, Ford announced it’s canceling a program that would have allowed dealers to apply the $7,500 federal EV tax credit to lease payments after the subsidy expired September 30. The automaker said it will maintain its current competitive lease offers but will not claim the credit.Â
The decision follows a similar move by General Motors, which ended its own program Wednesday. Both automakers had planned to have in-house lending arms purchase EVs from dealers, claim the tax credit, and roll the benefit into customer lease payments.
While Ford Credit will continue to offer 0% financing for 72 months and other incentives for customers purchasing EVs, some manufacturers, including Hyundai and Stellantis, have provided cash incentives to bridge the gap left by the expired credit.
GM canceled its program after Republican Senator Bernie Moreno of Ohio, a former car dealer active in auto policy, raised concerns. However, Ford has not provided a clear reason for its decision.
Automakers have been working closely with the Internal Revenue Service (IRS) to develop strategies to sustain EV sales amid the upcoming expiration of the federal credit. While industry leaders remain divided on the potential impact, with some warning that sales could decline significantly without the credit, others asserting that the EV market is resilient, the industry continues to adapt and respond to these evolving circumstances.
The cancellation highlights the challenges automakers face in maintaining strong EV demand while navigating shifting federal incentives and regulatory scrutiny.
