car sales

The federal tax credit for electric vehicles ended last fall, but you can still access government-funded discounts for electric vehicles — if you live in the right state.

For over a century, many states required new cars to be sold through independent dealerships. Tesla helped crack that open for EV startups by selling direct to customers.

Between COVID shortages, expired EV tax incentives, and tariff anxiety, vehicle sales have been volatile in the last few years and down in the last few months. But things could be picking up.

Buyers of new vehicles assembled in the U.S. could boost their tax refunds by hundreds of dollars through a new tax deduction for auto loan interest.

Sales were buoyed by expectations that prices would rise even more soon, tarrif concerns, and now-ended electric vehicle tax credits.

October's 6.7% drop followed a spike in late summer before subsidies expired.

COVID-19 changed the used car market as supply chain constraints and rising demand pushed prices higher. In 2025, those ripple effects are still being felt.

That may be in part because wealthy consumers especially have tried to get ahead of tariffs by purchasing costlier items now.

New vehicle sales jumped in the spring as consumers tried to get ahead of tariff-induced price increases. Sales have since cooled, but major price hikes haven’t yet arrived.

End-of-year deals, along with replacement of vehicles lost to hurricanes and anticipation of higher prices in 2025, may be prodding buyers.