Your Money Minute – “EV Tax Credit Workaround For EV Buyers”

Episode Date: October 1, 2025
Host: Jessica Ettinger (CNBC)
Guest Contributor: Phil LeBeau (CNBC Auto Reporter)
Length: 60 seconds

Episode Overview

In this succinct episode, Jessica Ettinger and Phil LeBeau discuss a major shift in U.S. electric vehicle (EV) incentives: the expiration of the federal tax credit for EV buyers as of September 30, 2025. The show unpacks the immediate ramifications for consumers and the auto industry, spotlights a creative workaround from automakers, and includes commentary from Ford's CEO on the policy's expected impact on EV sales.

Key Discussion Points & Insights

1. Expiration of the Federal EV Tax Credit

• Expiration Confirmed: The long-standing federal tax credit for electric vehicles officially expired on Tuesday, September 30, 2025.
• Immediate Impact: The disappearance of this incentive could make EVs financially less accessible to many buyers.
  • Jessica Ettinger [00:00]:
    “The electric vehicle federal tax credit is gone. It expired on Tuesday, September 30th.”

2. Automaker Workaround for Buyers

• Manufacturer Solution: Automakers’ credit divisions are stepping in to absorb part of the cost for in-stock EVs by making down payments.
• Leasing Loophole: Dealers are utilizing these savings to offer leases on EVs that indirectly provide the same financial benefit as the previous tax credit.
  • Phil LeBeau [00:26]:
    “The dealers can then turn around and lease those vehicles with the discount.”
  • Jessica Ettinger [00:31]:
    “So while it’s not technically giving you the EV tax credit, you’ll get the benefit of it if you’re one of those people leasing an EV. And again, this applies only to current inventory.”

3. Industry Concerns: Effects on Production and Sales

• Policy Critique: The Trump administration’s decision to let the credit expire is seen as a setback that will hurt both EV production and sales in the U.S.
• Red Flag from Automakers: CEO of Ford, Jim Farley, publicly warned of a dramatic drop in EV market share following the policy change.
  • Jessica Ettinger [00:43]:
    “The Trump administration’s elimination of the credit that helped car buyers choose to go electric is poised to severely hurt EV production and consequently sales.”
• Ford CEO Jim Farley’s Prediction:
  • Phil LeBeau [00:59]:
    “Here’s Ford CEO Jim Farley. He in Detroit talking about what he expects. I wouldn’t be surprised if the EV sales in the US go down to 5% of our industry from probably this month, 10-12%.”

4. More Resources

• For further details and car buying advice, listeners are directed to cnbc.com.
  • Jessica Ettinger [01:13]:
    “There’s a lot more on car buying. @cnbc.com. I’m Jessica Ettinger, CNBC.”

Notable Quotes & Memorable Moments

• Jessica Ettinger on the tax credit’s end [00:00]:
  “The electric vehicle federal tax credit is gone. It expired on Tuesday, September 30th.”
• Phil LeBeau on the lease workaround [00:26]:
  “The dealers can then turn around and lease those vehicles with the discount.”
• Jessica Ettinger clarifies scope [00:31]:
  “So while it’s not technically giving you the EV tax credit, you’ll get the benefit of it if you’re one of those people leasing an EV. And again, this applies only to current inventory.”
• Jim Farley’s warning to the industry (via Phil LeBeau) [00:59]:
  “I wouldn’t be surprised if the EV sales in the US go down to 5% of our industry from probably this month, 10-12%.”

Timestamps for Important Segments

• 00:00 – Episode opens with announcement about expired EV tax credit
• 00:26 – Phil LeBeau explains automaker workaround via leasing
• 00:43 – Discussion of policy impact on car buyers and EV market
• 00:59 – Ford CEO Jim Farley’s quote on expected industry downturn
• 01:13 – Resource plug for more car buying information

Summary

This episode delivers an urgent update for car shoppers: while the federal EV tax credit has lapsed, automakers have devised a temporary lease-based workaround to keep discounts alive—for now and for vehicles already in stock. However, both hosts and industry leaders like Ford’s CEO warn that this policy shift could swiftly and drastically cut U.S. EV sales, potentially halving market share overnight. For those considering an EV, the episode suggests acting quickly while creative deals remain available.