In a recent press release dated September 18, 2025, Cars.com™ (NYSE: CARS) unveiled an insightful analysis of the electric vehicle (EV) market as the federal EV tax credit approaches its expiration on September 30. As shoppers rush to capitalize on tax savings of up to $7,500 for new EVs and $4,000 for used models, the marketplace is witnessing a notable surge in demand.

1. Rising Awareness and Urgency Among Consumers

Cars.com’s findings reveal a significant awareness of the impending tax credit expiration among potential EV buyers. Approximately 70% of EV and plug-in hybrid shoppers are aware of the federal tax credit, yet only 53% are informed about its impending end. Notably, a striking 78% of consumers indicate that the credit plays a crucial role in their decision to transition to electric vehicles.

With nearly half (47%) of EV considerers stating that the elimination of the credit may expedite their purchase timeline, the urgency is palpable. The marketplace is responding with a remarkable 33% year-over-year increase in demand for new EVs and a 22% increase for used models.

> "The federal EV tax credit helped make EVs more affordable, and while its expiration at the end of September may slow demand in the short term, it doesn't mean the end of affordable EVs," commented Aaron Bragman, Detroit Bureau Chief at Cars.com. He emphasized that shoppers are keen to secure savings before the deadline, and the company’s Top EV Picks highlight a range of strong options for various buyers.

2. Cars.com’s Top EV Picks for 2026

In light of the evolving market, Cars.com’s editors have identified their Top EV Picks for 2026, based on factors such as value, usability, performance, and technology. The selected models are:

Best Value EV — *2025 Chevrolet Equinox EV*

2-Row SUV — *2026 Hyundai Ioniq 5*

3-Row SUV — *2026 Kia EV9*

Electric Car — *2025 Hyundai Ioniq 6*

Luxury EV — *2026 Lucid Air*

Pickup Truck — *2026 Chevrolet Silverado EV*

These selections reflect the growing diversity in the EV market, catering to various consumer preferences while emphasizing affordability and technological innovation.

3. Inventory Trends and Market Dynamics

The EV market is also experiencing shifts in inventory and pricing dynamics. As of August 2025, new EV inventory showed a modest growth of 1.4% year-over-year. However, brands like Chevrolet and Honda have scaled back production due to previous EV launches, while others are expanding their offerings.

Average prices for new EVs have risen by 4.1% year-over-year, largely attributed to the introduction of more premium models. Conversely, the used EV market has seen an impressive 38% increase in inventory, totaling 97 models. Despite this growth, vehicles are being sold at a faster pace—averaging just 46 days on the lot compared to 66 days a year prior.

Tesla, which constitutes about one-third of the used EV listings, has seen an average price drop of 16.2% year-over-year, contributing to an overall decrease of 3.8% in used EV prices.

4. Conclusion

As the federal EV tax credit nears its expiration, Cars.com’s analysis underscores a pivotal moment in the electric vehicle market. With heightened consumer awareness and urgency driving demand, the marketplace is poised for a period of dynamic change. The selection of top EV picks signals a commitment to providing consumers with a range of options, even as the landscape continues to evolve post-tax credit. The future may hold challenges, but the continued innovation in electric vehicles suggests that affordability and access will remain key priorities for both consumers and manufacturers alike.

Original press release