Seattle is experiencing a surge in electric vehicle sales as the federal tax credits for EVs expire, creating a sense of urgency among consumers. Rachel Walen, sales manager at a local Hyundai dealership, reports a busy weekend, attributing the increased interest to a last-minute push to secure specific vehicle configurations before the deadline. August sales of new EVs in the U.S. jumped nearly 18% compared to the previous year, while used EV purchases spiked 59%, reaching 10% of all new vehicle sales – a U.S. record.
Despite the federal incentives disappearing on September 30th, Washington State is stepping in with initiatives like ZEVergreen, aimed at further promoting zero-emission vehicles. The state’s efforts are bolstered by a history of aggressive climate goals, including a law mandating all new vehicles sold starting in 2035 to be zero-emission. Washington’s commitment extends to fighting federal efforts to nullify California’s stricter vehicle emissions standards.
A significant factor driving the demand is the loophole regarding EV leases, which saw no income restrictions. As tax credits for buyers expired, a wave of 3-year-old used EVs is anticipated to hit the market as leases expire. While some forecasts predict lower EV sales in the U.S. due to recent policy changes, global EV sales are expected to increase by 24% this year, largely driven by China. Despite these fluctuations, research indicates that a large percentage of current EV owners intend to remain electric for their next vehicle purchase.