The $4,000 used EV tax credit expires Sept. 30, 2025, driving urgent purchases of qualifying models.

The federal $4,000 tax credit for used electric vehicles expires September 30, 2025, prompting many Americans to accelerate purchases, with demand rising for models like the Ford Mustang Mach-E, Hyundai Ioniq 5, and Volkswagen ID.4. Though the credit is not available for most new EVs or non-compliant models, consumers can still benefit by signing contracts or making down payments before the deadline. The credit applies to vehicles under $25,000, at least two years old, and assembled in North America, with income limits. While used EV prices have declined, inventory is moving faster, and state-level incentives remain. Experts stress the credit’s role in reducing emissions and slowing adoption if removed, urging buyers to act quickly in a competitive market.