Used EV sales outpace new as Trump bill ends tax credits

President Donald Trump’s One Big Beautiful Bill marks the end of the federal EV tax credits at a time when sales of used EVs and hybrids are ramping up and new EV sales are slowing. 

The bill, signed July 4, could spur additional incentives at the state level and from manufacturers as the federal credits end nearly seven years early. The bill moves the expiration date up to Sept. 30 versus the initial end date of Dec. 31, 2032.  

At the same time, lower prices and more models coming off-lease contributed to an uptick in used-EV sales in May, while new EV sales declined year over year. 

Hybrid sales have also been on the rise, with gas-hybrid sales making up a record 12.6% of total vehicle sales in April.  

In powersports, several Harley-Davidson dealerships have closed their doors amid a dip in motorcycle sales and in tandem with leadership changes at the company.  

Weaker motorcycle sales mirror trends in the wider powersports market headed into the summer months, with powerboat retail sales down 9% YoY through April and North American RV registrations down 5.6% YoY in May. 

On the tech front, Santander Consumer USA has launched a new pre-qualification dealer lead generation tool, and CarMax is gearing up to launch updated versions of its chatbot tools for associates and customers. 

In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss the latest updates on electric vehicles, incentives, powersports and technology for the week ended July 11.