Ford and General Motors are using a financing workaround to preserve the effect of the $7,500 federal EV tax credit for customers, even after the incentive officially expired last September. Both automakers are having their financing arms purchase unsold EV inventory directly from dealer lots, converting those vehicles into company-owned units that can then be leased to customers.
How the Workaround Functions
Because the vehicles are technically owned by the automakers’ financing divisions rather than sold directly to consumers, they can still qualify for a commercial version of the tax credit. That allows Ford and GM to apply an equivalent discount to lease payments without requiring customers to file for the credit themselves. The approach mirrors a leasing strategy dealers have used for years, where the credit is claimed upfront and reflected as a reduced price at signing.
Why Leasing Already Made Sense for EV Buyers
Leasing has become an increasingly popular option for EV shoppers independent of this workaround, driven by concerns over battery longevity, uncertain resale values, and high purchase prices. EV leasing rates have roughly tripled over the past two years, as more buyers opt for shorter-term commitments that limit their exposure to depreciation while still allowing them to benefit from lower fuel costs.
A Bet on Sustaining EV Demand
With EV sales facing pressure following the loss of the federal incentive, Ford and GM appear to be betting that preserving credit-equivalent savings through leasing will help sustain buyer interest during a period of uncertain demand. Whether the strategy proves sufficient to offset the broader slowdown in EV sales remains to be seen.