New and used EV sales are booming, and it’s all because of U.S. President Donald Trump. The president successfully pushed Congress to end the EV tax credit for new and used vehicles, and consumers are rushing to cash in on those programs before they disappear for good. That drove strong EV sales growth last month, with demand reaching near-record levels, per new data from Cox Automotive.
Remember, the big Republican budget bill that axes EV incentives after September 30 was signed into law on July 4. And in the first month following that, the Trump bump already had a massive impact on EV sales. The gains weren’t just here and there; almost every make saw growth.
“July new EV sales climbed to 130,082 units, up 26.4% month over month and 19.7% year over year, lifting market share to 9.1%,” the Cox report says. “It was the second-highest monthly total on record, with 11 brands posting their best EV sales of the year. The top five by volume—Tesla (53,816 units), Chevrolet, Hyundai, Ford and Honda—all saw strong gains, while Volkswagen surged 454% to sixth place. Luxury brands also performed well, with Audi (+150.2%), Cadillac (+14.5%) and Mercedes-Benz (+6.4%) signaling continued strength in the premium segment.”
This tracks with my personal experience. As tariffs affect the whole market, consumer confidence softens and EV incentives disappear, consumers and dealers all expect prices to go up. Many are rushing to get in while the getting’s still good. I’ve encouraged multiple friends and family members to buy or lease their new or used EVs now, before it’s too late. Based on the Cox data, that message is getting through to a lot of shoppers.
EV inventories are way down. The average dealer had a 40 day supply of used EVs in July, a decline of 49% year over year. That’s tighter than the market for used internal-combustion vehicles, with dealers holding about 43 days supply in July. On the new market, that relationship flips, an 87-day supply of new EVs compared to 76 days worth of ICE inventory. But still, new EV inventory is down 49% compared to a year ago.
So what does it mean when sales are up, but inventory is down? It means consumers are snapping these deals up. I’d highly recommend you do the same. A used EV or a new cheap EV lease remain the two most cost-effective ways to get a great car, but that window is closing. Come October 1, most EV leases will suddenly cost $7,500 more, and used EV buyers won’t be eligible for a $4,000 federal tax credit, either.
It’s a good time to brush up on our used EV buyer’s guide. There may be a deal in there for you.
Contact the author: Mack.Hogan@insideevs.com.
