Electric vehicle (EV) sales are surging across the U.S. as consumers race to take advantage of the federal government’s $7,500 tax credit before it expires on September 30, 2025. Dealers in EV hot spots like Colorado report unprecedented demand, with steeply discounted lease offers drawing in new and repeat buyers alike, reports the WSJ.

Deep Discounts Drive Demand

At Emich Kia in Denver, shoppers have been lining up for bargain leases. The dealership recently offered a Niro EV for $40 a month before taxes, while the Kia EV6 was marketed for under $100 a month. Even the higher-end three-row Kia EV9, priced at $65,000, was available for $189 a month before taxes.

“These EVs have just absolutely crushed that,” said Colt Emich, the dealership’s general manager. “It’s a small portion of a percentage. It’s just unprecedented.”

Other automakers have followed suit. Tynan’s Nissan offered a $169-a-month lease for a $57,000 Ariya SUV, which has since become one of Colorado’s best-selling EVs in 2025.

Ev Buyers Rush To Secure Deals Ahead Of Federal Tax Credit Expiration

Buyers Motivated by Expiring Incentives

For many buyers, the looming tax credit deadline is the final push. Eighty-year-old John McCabe, a retired physician, described his reasoning simply: “We were going to buy one anyway. As long as we’re going to do it, you might as well get it done before the incentives disappear.”

Paul Ibarra, a 39-year-old bus driver, reportedly said the tax credits made ownership possible. “There’s no way I would be able to afford this car if it wasn’t for the EV credits,” he noted.

Greg Scolnick, another shopper in Denver, called the discounts “a major driver” as he considered a Volkswagen ID.4 lease for as low as $39 a month before taxes.

Automakers Adjust as Incentives Fade

The surge in demand comes as automakers prepare for a future without federal subsidies. General Motors recently laid off about 360 workers at a Detroit plant to scale back production of the GMC Hummer EV and Cadillac Escalade IQ, citing inventory adjustments.

State-level incentives and infrastructure investments, such as Colorado’s fast-charging expansion, have also fueled adoption. EVs accounted for nearly one in five new vehicle sales in Colorado between April and June—more than double the national market share.

Tesla and Rivian continue to see strong demand in the state, though Nissan’s Ariya has emerged as a standout in 2025.

A Market at a Crossroads

Industry analysts warn the sales spike may be temporary. Once the federal credit ends, dealers and automakers will need to rely more on state programs, advertising, and cost reductions to sustain momentum.

Colorado Governor Jared Polis defended the policy shift, saying, “The tax credits were not meant to be ongoing forever. They’re meant to accelerate adoption of new technology, and they have done that.”

Still, dealers remain cautious. “We may never see this level of deal again,” said Markus Kamm, a Nissan sales manager.

As the deadline approaches, buyers across the U.S. face a narrowing window to secure an EV at historically low lease prices, marking a turning point for the industry’s reliance on government-backed incentives.