Latest news with #Recurrent
NBC News
6 days ago
- Automotive
- NBC News
EV sales soar as Trump axes $7,500 tax credit: 'People are rushing out' to buy, analyst says
Consumers are racing to buy electric vehicles before a fast-approaching deadline to claim tax credits worth up to $7,500, according to auto analysts. Legislation championed by Republicans on Capitol Hill and signed by President Donald Trump in July eliminates the tax breaks — available for new, used and leased EVs — after Sept. 30. The Biden-era Inflation Reduction Act had originally offered the tax breaks to consumers through 2032. 'We're expecting Q3 may be [a] record for EV sales because of the tax incentives going away,' said Stephanie Valdez Streaty, a senior analyst at Cox Automotive. 'People are rushing out' to buy, she said. 'Significant volume' of EV sales Consumers purchased nearly 130,100 new EVs in July, the second-highest monthly sales tally on record, behind roughly 136,000 sold in December, according to Cox Automotive data. The July figures represent a 26.4% increase from June and nearly 20% increase year-over-year, Streaty said. The share of EV sales in July also accounted for about 9.1% of total sales of passenger vehicles that month, the largest monthly share on record, according to Cox. 'We're seeing significant volume in new EVs,' said Liz Najman, director of market insights at Recurrent, an EV marketplace and data provider. Meanwhile, there were nearly 36,700 used EVs sold in July, a record monthly high, Cox data shows. Specific EV models — the Chevy Equinox EV, Honda Prologue and Hyundai IONIQ 5 — also saw record-breaking sales last month, Najman said. There were 8,500 Equinox EVs sold in July, the highest monthly EV total in the U.S. for any model outside of Tesla, which is the market leader, Najman said. (This comes as Tesla's sales have declined for two consecutive quarters, by about 12% year-over-year in Q2 and 9% in Q1, according to Cox data.) $7,500 tax credit puts EVs near price parity The tax credits — worth up to $7,500 for new EVs and $4,000 for used EVs — aim to make EV purchases more financially enticing for consumers. The EV tax breaks were one of many policies the Biden administration adopted to try try to cut U.S. greenhouse gas emissions. The transportation sector is the largest source of U.S. greenhouse gas emissions. EVs are 'unambiguously better' for the environment than traditional cars with an internal combustion engine, according to the Massachusetts Institute of Technology. However, while EVs tend to be cheaper over the lifecycle of car ownership relative to traditional gasoline vehicles, they generally carry a higher upfront cost, analysts said. The average transaction price for all new passenger vehicles (aside from battery electric vehicles) in July was $48,078, according to Cox data. The average for new EVs was $55,689, before any dealer incentives and tax credits, Cox said. If the purchase were to qualify for the full $7,500 tax credit, it'd be near price parity, around $48,189. The price gap between EV and gasoline cars 'no longer exists,' Tom Libby, an analyst at S&P Global, wrote in July. The disappearance of the federal tax credits 'jeopardizes' price competitiveness, he wrote. States and utilities may offer additional financial incentives for EVs, depending on where consumers live, analysts said. EV dealers boost incentives Dealers are also seeking to capitalize on the upcoming Sept. 30 deadline, stoking a sense of consumer urgency to boost sales, analysts said. ″$7,500 Federal Tax Credit Ending,' was in bold lettering at the top of Tesla's home page as of early afternoon Friday. 'Limited Inventory — Take Delivery Now,' the automaker wrote underneath. Sept. 30 is the date by which consumers must take ownership of the car (essentially, be driving it off the lot) to qualify for an EV tax credit. Beyond the tax breaks, dealers are also offering relatively generous financial benefits to entice consumers. They provided about $9,800 of additional financial incentives, on average, to new-EV buyers in July, worth about 17.5% of the average transaction price, Cox data shows. That share is the highest percentage dating to October 2017, which was before the 'new era of EV adoption' when monthly sales volume was quite low, Streaty said. EV sales are likely to 'collapse' in the fourth quarter of 2025, once the tax credit expires and the market adjusts to a new financial reality, she said. Used EVs are likely to be a bright spot in the near term, analysts said. Growth has been accelerating, and most buyers today already don't qualify for the $4,000 tax break. ″[A]pproximately one-third of used EVs qualified for the incentive anyway,' Cox Automotive wrote last month. 'With availability growing and incentives for new EVs expected to fall, the used EV market may grow faster in the quarters ahead.'
CNBC
6 days ago
- Automotive
- CNBC
EV sales soar as Trump axes $7,500 tax credit: 'People are rushing out' to buy, analyst says
Consumers are racing to buy electric vehicles before a fast-approaching deadline to claim tax credits worth up to $7,500, according to auto analysts. Legislation championed by Republicans on Capitol Hill and signed by President Donald Trump in July eliminates the tax breaks — available for new, used and leased EVs — after Sept. 30. The Biden-era Inflation Reduction Act had originally offered the tax breaks to consumers through 2032. "We're expecting Q3 may be [a] record for EV sales because of the tax incentives going away," said Stephanie Valdez Streaty, a senior analyst at Cox Automotive. "People are rushing out" to buy, she said. Consumers purchased nearly 130,100 new EVs in July, the second-highest monthly sales tally on record, behind roughly 136,000 sold in December, according to Cox Automotive data. The July figures represent a 26.4% increase from June and nearly 20% increase year-over-year, Streaty said. The share of EV sales in July also accounted for about 9.1% of total sales of passenger vehicles that month, the largest monthly share on record, according to Cox. "We're seeing significant volume in new EVs," said Liz Najman, director of market insights at Recurrent, an EV marketplace and data provider. Meanwhile, there were nearly 36,700 used EVs sold in July, a record monthly high, Cox data shows. Specific EV models — the Chevy Equinox EV, Honda Prologue and Hyundai IONIQ 5 — also saw record-breaking sales last month, Najman said. There were 8,500 Equinox EVs sold in July, the highest monthly EV total in the U.S. for any model outside of Tesla, which is the market leader, Najman said. (This comes as Tesla's sales have declined for two consecutive quarters, by about 12% year-over-year in Q2 and 9% in Q1, according to Cox data.) The tax credits — worth up to $7,500 for new EVs and $4,000 for used EVs — aim to make EV purchases more financially enticing for consumers. The EV tax breaks were one of many policies the Biden administration adopted to try try to cut U.S. greenhouse gas emissions. The transportation sector is the largest source of U.S. greenhouse gas emissions. More from Personal Finance:Trump tariffs make investing 'tricky'Imposter scams cost older adults $700 million in 2024What private assets in 401(k) plans mean for investors EVs are "unambiguously better" for the environment than traditional cars with an internal combustion engine, according to the Massachusetts Institute of Technology. However, while EVs tend to be cheaper over the lifecycle of car ownership relative to traditional gasoline vehicles, they generally carry a higher upfront cost, analysts said. The average transaction price for all new passenger vehicles (aside from battery electric vehicles) in July was $48,078, according to Cox data. The average for new EVs was $55,689, before any dealer incentives and tax credits, Cox said. If the purchase were to qualify for the full $7,500 tax credit, it'd be near price parity, around $48,189. The price gap between EV and gasoline cars "no longer exists," Tom Libby, an analyst at S&P Global, wrote in July. The disappearance of the federal tax credits "jeopardizes" price competitiveness, he wrote. States and utilities may offer additional financial incentives for EVs, depending on where consumers live, analysts said. Dealers are also seeking to capitalize on the upcoming Sept. 30 deadline, stoking a sense of consumer urgency to boost sales, analysts said. "$7,500 Federal Tax Credit Ending," was in bold lettering at the top of Tesla's home page as of early afternoon Friday. "Limited Inventory — Take Delivery Now," the automaker wrote underneath. Sept. 30 is the date by which consumers must take ownership of the car (essentially, be driving it off the lot) to qualify for an EV tax credit. Beyond the tax breaks, dealers are also offering relatively generous financial benefits to entice consumers. They provided about $9,800 of additional financial incentives, on average, to new-EV buyers in July, worth about 17.5% of the average transaction price, Cox data shows. That share is the highest percentage dating to October 2017, which was before the "new era of EV adoption" when monthly sales volume was quite low, Streaty said. EV sales are likely to "collapse" in the fourth quarter of 2025, once the tax credit expires and the market adjusts to a new financial reality, she said. Used EVs are likely to be a bright spot in the near term, analysts said. Growth has been accelerating, and most buyers today already don't qualify for the $4,000 tax break. "[A]pproximately one-third of used EVs qualified for the incentive anyway," Cox Automotive wrote last month. "With availability growing and incentives for new EVs expected to fall, the used EV market may grow faster in the quarters ahead."
Yahoo
17-07-2025
- Automotive
- Yahoo
Auto expert makes stunning prediction about when EVs will surpass gas cars on US roads: 'The implications to this hidden trend are wild'
Gas-powered cars are disappearing from U.S. roads and being replaced by electric vehicles at a surprising pace. This shift is occurring at a different rate per state, yet it is an impressive trend and encouraging for the health of people and our planet. As Recurrent reported, a tipping point for gas-powered cars on the road comes when a state reaches 30% in EV sales. That tipping point is 2025 in California and 2026 in Washington and Colorado. Other states will start seeing fewer gas cars added to their roads compared with the increase in EV sales between 2028 and 2035. "The implications to this hidden trend are wild," wrote Scott Case, co-founder and CEO of Recurrent. "Revenue from gasoline sales and oil changes will begin to decline in several states in the next year or two." Case explained that as this shift from gas to electric vehicles advances, gas car owners will find themselves driving obsolete technology that's expensive and challenging to maintain. He predicted that gas stations would start closing and gas-powered car repairs would become more costly and difficult to obtain. He also suggested that the value of used gas cars will decrease since buyers are increasingly preferring EVs. Meanwhile, the used EV market has been growing rapidly as prices for pre-owned, eco-friendly vehicles drop to affordable levels. A CarMax report shared that used EV prices dropped by over 40% between January 2022 and February 2025. Recurrent is an innovative company that connects EV sellers to networks of dealers and monitors EV battery health for free. On average, EV sellers earn approximately $1,400 more by selling their electric vehicles through Recurrent. There are now many ways to make owning an EV affordable and profitable. Do you think a majority of Americans will have EVs in 20 years? Absolutely Only in some states No way I'm not sure Click your choice to see results and speak your mind. For example, some drivers are reducing their EV operating costs by charging their vehicles at home with solar panels rather than paying for public charging stations. EnergySage is a free and convenient resource for comparing solar quotes from vetted local installers. Many people are excited about the prospect of having more EVs than gas-powered cars on their states' roads and enjoying less planet-overheating pollution in the air they breathe. On Case's LinkedIn post sharing the data, one social media user commented, "Going electric is a no-brainer." "I'd love to see the curve of adoption bend a bit more with more even electric to gas pricing and more affordable batteries," a LinkedIn user wrote. "This can't happen quickly enough," someone else shared. "Clean air is a fundamental human right." Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Yahoo
17-07-2025
- Automotive
- Yahoo
Auto expert makes stunning prediction about when EVs will surpass gas cars on US roads: 'The implications to this hidden trend are wild'
Gas-powered cars are disappearing from U.S. roads and being replaced by electric vehicles at a surprising pace. This shift is occurring at a different rate per state, yet it is an impressive trend and encouraging for the health of people and our planet. As Recurrent reported, a tipping point for gas-powered cars on the road comes when a state reaches 30% in EV sales. That tipping point is 2025 in California and 2026 in Washington and Colorado. Other states will start seeing fewer gas cars added to their roads compared with the increase in EV sales between 2028 and 2035. "The implications to this hidden trend are wild," wrote Scott Case, co-founder and CEO of Recurrent. "Revenue from gasoline sales and oil changes will begin to decline in several states in the next year or two." Case explained that as this shift from gas to electric vehicles advances, gas car owners will find themselves driving obsolete technology that's expensive and challenging to maintain. He predicted that gas stations would start closing and gas-powered car repairs would become more costly and difficult to obtain. He also suggested that the value of used gas cars will decrease since buyers are increasingly preferring EVs. Meanwhile, the used EV market has been growing rapidly as prices for pre-owned, eco-friendly vehicles drop to affordable levels. A CarMax report shared that used EV prices dropped by over 40% between January 2022 and February 2025. Recurrent is an innovative company that connects EV sellers to networks of dealers and monitors EV battery health for free. On average, EV sellers earn approximately $1,400 more by selling their electric vehicles through Recurrent. There are now many ways to make owning an EV affordable and profitable. Do you think a majority of Americans will have EVs in 20 years? Absolutely Only in some states No way I'm not sure Click your choice to see results and speak your mind. For example, some drivers are reducing their EV operating costs by charging their vehicles at home with solar panels rather than paying for public charging stations. EnergySage is a free and convenient resource for comparing solar quotes from vetted local installers. Many people are excited about the prospect of having more EVs than gas-powered cars on their states' roads and enjoying less planet-overheating pollution in the air they breathe. On Case's LinkedIn post sharing the data, one social media user commented, "Going electric is a no-brainer." "I'd love to see the curve of adoption bend a bit more with more even electric to gas pricing and more affordable batteries," a LinkedIn user wrote. "This can't happen quickly enough," someone else shared. "Clean air is a fundamental human right." Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Fast Company
15-07-2025
- Automotive
- Fast Company
Used EV sales are quietly booming—and yes, that includes Teslas
If you've ever considered buying a used EV, now is the time. According to a new study from the EV data analysis firm Recurrent, the used EV industry is seeing increased inventory, stable prices, and demand to rival sales of used gas cars. Recurrent's report looks at the American used EV market from January to May 2025. The data shows that, since February, used EV inventory has been up 50% year-over-year. The report comes in the wake of another major update for the EV market: On July 3, Congress approved new spending legislation which will end tax credits on buying new or used EVs beginning on September 30. In light of this change, experts have predicted that EV sales are likely to see a spike pre-September, followed by a decline in the months after. Here's what to know about the current used EV market: Used EVs sales are closing in on used gas cars According to Recurrent's analysts, some of that demand can be attributed to the impending tax credit deadline—but there are a few other likely motivators. First, the available selection has broadened within the past few years: There are currently 70 plug-in hybrid EV and battery-powered EV models on the market. Many options—even when used—are also newer than comparable gas cars, with 72% of used EV listings dating within the past five years. To top it off, EVs are now giving gas cars significant competition in terms of affordability. 'Someone on a budget can stretch their dollar farther in the used EV market as compared with a used gas car,' Recurrent's report notes. '34% of inventory is priced under $25K, and 55% is under $30K. For comparison, in the gas car market, nearly half of all used cars were $20K or less in 2019. Today, only 11% are. ' Despite Elon Musk's drag on the brand, used Teslas remain popular One of Recurrent's more surprising findings is that, despite Tesla's endless list of brand struggles this year (see its plummeting stock prices, lagging deliveries, and constant political woes), used Teslas have not seen the crash in resale value that many experts predicted (The sole exception to this trend is Tesla's Cybertruck model). While used Tesla prices did see a modest 2% dip in April, Recurrent's report demonstrates that they've broadly kept pace with the overall used EV market. More importantly, it adds, 'inventory didn't sit idle': April saw a 27% increase in sales volume month over month and, by May, used Tesla market share rose to nearly 50%, and days supply fell to just 28 days—the lowest in the industry. 'The interesting thing about our Tesla findings is that they remain very popular options for used car shoppers,' says Andrew Garberson, Recurrent's head of growth & research. 'For people who want a high-range, low-mile, affordable used EV, it's often a Tesla based on their market share the last 10 years. One car dealer even told us that someone looking for an affordable used EV 'doesn't care what Elon says or does. They just need a low-cost, reliable vehicle.'' With the tax credit deadline looming, now is the time to buy Since 2008, purchasing a new EV has come with the incentive of a $7,500 federal tax credit—a policy that was expanded in 2022 under the Biden administration to include a potential federal credit of up to $4,000 on used EVs. With the September 30 tax credit deadline now looming on the horizon, buyers are likely to try to get in on the deal before it's gone. While Garberson says it's a little too early for Recurrent to see a spike in used EV sales resulting from the new spending bill, the team has seen a considerable increase in interest from clients. As of July 9, weekly website traffic to Recurrent's used EV resources had doubled week-over-week. 'The main takeaway is that now is the time for people considering an affordable used EV,' Garberson says. 'The tax credits are helping to anchor prices to the $25,000 threshold so newer models with modern range and technology can be affordable for a lot of people. Eligible buyers can also apply the $4000 rebate to the purchase price, even using it as a downpayment. It's a deal that can't be beat.' Can the used EV market sustain this level? So far, most experts have predicted that the end of the tax credit will be detrimental for the American EV market. Dan Levy, Barclays' auto analyst, explained in an interview with Reuters, 'We believe the bill reiterates the slowdown ahead for EV penetration in the U.S., with both the 'carrot' (i.e. tax credits/incentives) and the 'stick' (i.e. emissions regulations) softened.' Garberson says that, while lease terms indicate that an influx of used EVs is set to hit the market in 2026, it's difficult to predict what that might look like without the credit. 'The question on everyone's mind is what happens between September 30th and the end of the year,' Garberson says. 'I think we'll see that dealerships will keep inventory low while the market rebalances, which would keep sticker prices relatively stable. It'll be interesting to see how states act to backfill federal incentives. A number of states either currently offer or have proposed rebates to help their residents. But all of those factors make the crystal ball difficult to read.'
