Ford Motor Company has scrapped plans to continue passing on a $7,500 electric vehicle (EV) lease credit to customers after the federal subsidy officially expired on September 30. The automaker confirmed on Thursday that it will no longer claim the tax credit through its financing arm, Ford Credit, though it intends to keep lease payments competitive in the current market.
“Ford will not claim the EV tax credit but will maintain the competitive lease payments we have in the market today,” a spokesperson said.
The move mirrors a similar decision by General Motors earlier this week, signaling a broader recalibration among legacy automakers navigating the post-subsidy landscape. Both companies had designed mechanisms to help customers indirectly benefit from the federal credit, which had been a crucial driver of EV affordability.
How the Program Was Supposed to Work
Under the now-shelved plan, Ford Credit and GM Financial—each company’s in-house lending arm—would have purchased EVs directly from dealers. The automakers would then apply for the $7,500 federal clean vehicle credit themselves and use that amount to reduce lease costs for customers.
The approach aimed to offset the loss of the tax subsidy for individual buyers while preserving momentum in EV leasing, a segment that has become a key entry point for first-time electric adopters.
But just days after GM backed away from its initiative, Ford followed suit. While Ford has not provided specific reasons for the reversal, industry insiders note that GM’s retreat came after political pushback, particularly from Republican Senator Bernie Moreno of Ohio, a former car dealer known for his influence in auto policy.
Financing Offers Continue for Buyers
For customers still considering EV purchases, Ford Credit continues to provide a range of incentives, including 0% financing for up to 72 months on select models. These offers, the company says, are designed to keep electric vehicles financially accessible even without the federal support.
Ford’s decision underscores the growing tension automakers face between sustaining EV demand and managing the economic realities of production costs, interest rates, and shifting government incentives.
Industry Braces for Potential EV Sales Slowdown
The rollback of the lease credit programs from Ford and GM comes amid rising concerns over how the end of the federal subsidy will impact overall EV demand in the U.S.
Ford CEO Jim Farley has been vocal about the potential drop-off, warning earlier this year that EV sales could take a sharp hit once the credits expire. His caution contrasts with a more optimistic stance from Hyundai Motor North America’s CEO, who recently said the electric vehicle market remains resilient, driven by innovation and growing consumer confidence.
While Hyundai and Stellantis have turned to direct cash incentives to cushion the transition, Ford and GM had initially sought structural financial solutions through their leasing programs. Their sudden pullback leaves a temporary gap in affordability strategies, especially as consumers continue to weigh higher upfront EV costs against fluctuating fuel prices and evolving charging infrastructure.
A Transitional Moment for the U.S. EV Market
The federal EV tax credit, first introduced to accelerate the adoption of cleaner transportation, has long shaped automakers’ pricing and marketing strategies. Its expiration marks a turning point—testing not only the industry’s financial adaptability but also the genuine depth of consumer demand for electric mobility without government backing.
For now, Ford and GM appear focused on stabilizing lease terms and retail incentives, while other automakers explore creative ways to keep EVs within reach. Whether the market steadies or stumbles in the months ahead may set the tone for America’s next phase of electric adoption.
