Why are Colorado car dealerships offering such low prices for brand-new electric vehicles?
COLORADO SPRINGS, Colo. (KRDO) - You might've seen the ads on TV or social media of Colorado-based car dealerships offering lease prices for 2025 electric vehicles for less than $100 a month. What's the catch?
Why are so many dealerships leasing brand-new electric vehicles for the same amount that many pay for their monthly electric bill?
It comes down to three words: federal tax credit.
On September 30, the federal electric vehicle tax credit expires. The credit, which offered those who lease an electric vehicle $7,500, was allowed to sunset with the passage of President Trump's Big Beautiful Bill.
On top of that, on the first day of the new year, Colorado's state EV tax credit will drop from $3,500 to $750 for the purchase or lease of a new vehicle worth more than $35,000 and less than $80,000.
The CEO of Phil Long, Kevin Shaughnessy, says customers have been taking notice of this window,
"It's like a perfect storm for consumers. So right now there's...supply out there because there's vehicles available to buy. There's huge, federal incentives on these vehicles. The manufacturers have an incentive to move these vehicles along before the federal tax credits expire," said Shaughnessy.
Make sure you read the fine print, though Shaughnessy says a lot of these deals are for leases, which means by the time the lease ends, the lump sum to purchase the car is going to be high, and as is the case with any lease, make sure you're aware of the mileage limits.
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