Car Dealerships Beg the US Government to Help Them Sell Electric Cars!
Here’s an interesting twist. Car dealers are now asking Congress to keep the EV incentives. Now, we know there’s an issue when auto dealers start writing impassioned letters to Congress demanding to keep the electric vehicle tax credits alive. It’s a clear sign that the honeymoon phase of EV policy is over. Behind the public messaging of going green and building the future, a growing number of dealers and manufacturers are panicking. Like I’ve been saying, not because of consumer demand, not because that’s soaring, but because it’s not. And the incentives are doing more than promoting environmental goals. They’re propping up an industry shift that never had strong grassroots or support in the first place. I know there’s other autojournalists who’ve been all EV, and I’ve heard about it before, but you need to make the choice, not what somebody else says. Now with the federal government poised to scale back or eliminate EV tax credits in the big beautiful bill, some in the auto industry are scrambling. CarMax, Carvana, and several other dealer groups are urging Congress to preserve their investments in EV sales and services. Well, isn’t that interesting? Now they’re changing course. But their plea is simple. Without the $7,500 incentive on new EVs and $4,000 on used models, sales will slump. I’m going to say they’re going to dive. Let’s be honest. One Seattle area dealer even warned of a 25% to 30% drop in EV sales. That’s a lot. But let’s be honest, this isn’t about saving the environment anymore. It’s about protecting profit margins and preserving political capital. After years of lobbying silence, these same companies and their lobbying arms didn’t push back when the mandates were being written into law. And now that the tide has turned, they want taxpayers to continue footing the bill for what is its core a luxury purchase for highincome households with easy access to charging infrastructure. For most Americans, this is out of the price range and charging infrastructure isn’t available. very convenient that they want it always. It doesn’t work that way. What’s changing in Washington? Congressional Republicans are backed by growing public skepticism of electric vehicle mandates. They remove the taxpayerf funed cushion that has made electric vehicles appear more affordable than they actually are. Well, only to some people, not for everyone. And the Senate version of the big beautiful bill proposes ending the EV tax credits by September 30th, 2025. It was originally supposed to be the end of the year. Now, they’ve pulled it back three months earlier than the House’s original version, and the credits were initially set to expire in 2032. So, here’s what’s at stake. New EVs under $80,000, they would save up to $7,500 in tax credits, that’s federal tax credit discount. That’s not a check. Used EVs under $25,000, that would be a $4,000 break in federal tax credits. The only caveat is automakers that made less than 200,000 electric vehicles and that threshold, they can still qualify for incentives under the current law until 2026. But under section 11202 of the Senate bill, the one they read all night long on Saturday, those tax credits are on the chopping block. And the same bill would add a $250 annual registration fee for EVs, $100 for hybrids and plug-in hybrids to compensate for lost gas tax revenue to maintain highways. An acknowledgement that EV drivers currently don’t pay their fair share for public roads and the roads are in horrible shape across the US. It’s unbelievable that they’ve been able to get away with it for so long. I do know that some states are charging additional fees. This would be a federal tax when you register your vehicle. Is this too little too late? Well, dealers and manufacturers had years to challenge the growing federal mandates that funneled billions of dollars into EV production and infrastructure. And they didn’t. And I called them out on a regular basis. Why? Because the gravy train was still running. And billions in government contracts, purchase incentives, and sweetheart regulatory deals made it too lucrative to speak out. Now, with the Trump administration signaling a sharp reversal, of course, the industry wants the benefits to stay, even if the rules have changed. So, you want your cake and you want to eat it, too. Sorry, but this is the cost of doing business. You don’t get to opt out of push back now that the political winds have shifted. If customers want EVs, they’ll buy them. And there are some great products out there put out by multiple manufacturers. And if you want one, go buy one. But don’t make me or you buy one. That’s why all this is happening and that’s why the free market actually works. What we’re seeing now is an attempt to artificially prop up demand for taxpayer dollars. Even as surveys show most Americans still prefer internal combustion or hybrid vehicles, citing price, range anxiety, and the lack of infrastructure as major issues. Those are serious issues. The insurance part is the big one. costs a lot more to ensure an electric vehicle. In a twist that highlights the tangled relationship between politics and policy, a federal judge has temporarily blocked the Trump administration from halting EV infrastructure funds in 14 states. These funds stemming from President Biden’s infrastructure investment and jobs act were designed to eliminate range anxiety by building a nationwide EV charging network. The result was $5 billion spent and seven EV chargers. And that’s what we have today. A massive waste of your tax dollars. And I know they’re clawing that money back, but it’s still extremely infuriating. US District Judge Tanya Lynn ruled that withholding these funds was exceeding federal authority. As a result, states like California, New York, and Colorado will see their EV charging infrastructure plans reinstated for now. But the appeal is underway and most likely these funds are going to go back to the federal government. That’s your tax dollars. Remember that. So if you don’t have an EV, you’re still going to have to pay for somebody else to get the EV charging. That’s not cool. Still, this judicial intervention doesn’t fundamentally shift the larger momentum. Trump’s Department of Transportation has made it clear the Biden Buddha Judge new electric vehicle initiative program was a failure and it’s being removed. And the outcome of this legal battle could delay the administration’s intent to unwind the EV mandates and funding boondoggles. But in the end, the EV mandate and incentives will disappear. So be prepared for that. If you want an electric vehicle, it looks like you got to the end of September. Otherwise, that incentive goes away. Who actually benefits from the EV incentives? Well, let’s not sugarcoat this. EV incentives overwhelmingly benefit upper middle class and wealthy Americans. And a lot of companies that are a part of putting all this infrastructure in that are dragging their feet and collecting more federal tax dollars. They’re the ones that can afford the $60,000 Teslas, the $80,000 Hummer EVs. They can afford home chargers and they have multiple cars. So if the EV is not running, they can just grab one of their many other vehicles and they have easy access to public charging. The very Americans who are footing the bill with all these tax dollars and all these incentives are the working class. They’re the ones least likely to benefit from this. Moreover, EVs are not as clean as they’re marketed to be, or mainstream media suggests. The mining of lithium, cobalt, and rare earth minerals comes with some serious environmental and human consequences, often in countries with little regulation, and the electricity that powers these vehicles still largely is generated from coal and natural gas in many parts of the US. The bottom line is let the market decide. The EV market has not succeeded like the past administration claimed, nor the mainstream media, and there’s still minimal demand. Drivers want lowerc cost gasoline powered vehicles, hybrids, and plug-in hybrids. But the idea that EVs are the inevitable future and must be subsidized into dominance is not grounded in economic or consumer reality. Buy one if you want an EV. There’s still some great product available out there and plenty of choices. We reviewed them on our Car Smarts channel. Manufacturers and dealers made a business bet. Some will win, others will lose. But the solution isn’t to keep squeezing taxpayers. It’s to give consumers choice. Gas, hybrid, diesel, electric, let the best technology win in a fair and open marketplace. Instead of begging Congress to keep the incentives, maybe the industry should take a hard look at how it got here. Consumers want freedom of choice, not government mandates wrapped in green marketing. And if EVs are truly better, they’ll succeed on their own merits. If you like this video, give it a like and subscribe for more videos like this. And check out our car review channel, Car Smarts. You can support me by buying me a cup of coffee. And if you want even more content, check out the links in the description. I’m Lauren Fix. Thank you so much for watching.
Why are car dealerships begging the US government to help them sell electric cars. Dealerships were originally begging for the EV mandate to end. Suddenly there is a switch. When auto dealerships start writing impassioned letters to Congress demanding to keep electric vehicle (EV) tax credits alive, it’s a clear sign the honeymoon phase of EV policy is over. Behind the public messaging of “going green” and “building the future,” a growing number of dealerships and manufacturers are panicking – not because consumer demand is soaring – but because it’s not. The incentives are doing more than promoting environmental goals; they’re propping up an industry shift that never had strong grassroots support in the first place.
Now, with the federal government poised to scale back or eliminate EV tax credits, some in the automotive industry are scrambling. CarMax, Carvana, and several dealer groups are urging Congress to preserve the subsidies that have underwritten their investments in EV sales and service. Their plea is simple: without the $7,500 incentive on new EVs and $4,000 on used models, sales will slump. One Seattle-area dealer even warned of a 25–30% drop in EV sales.
But let’s be honest – this isn’t about saving the environment anymore. It’s about protecting profit margins and preserving political capital after years of lobbying silence. These same companies and their lobbying arms didn’t push back when mandates were being written into law. Now that the tide is turning, they want taxpayers to continue footing the bill for what is, at its core, a luxury purchase for high-income households with easy access to charging infrastructure. For most American this is out of their price range and charging infrastructure isn’t available.
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