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Electric vehicle sales hit record high ahead of tax credit deadline

This weekend is the last chance for drivers to cash in on federal tax credits for electric vehicles before they expire Tuesday. The looming deadline has fueled a rush in EV sales, which hit a record high in August, up more than 17% from the same time last year.

But while electric vehicles are surging, the market for gas-powered cars is slowing down. At Allrich Auto, a family-owned dealership in southwest Atlanta, owner Joshua Allrich says business has been sluggish as buyers weigh economic uncertainty and rising costs.

"Car dealers are the best therapists," Allrich said. "People come in with all kinds of situations, and I have to hone in on what the real issue is and how I can truly help them."

Allrich says he tries to give customers who have been turned away by larger dealerships a second chance, even with no credit checks. Still, he admits sales have dropped.

"Times are hard," he said. "Earlier this year, tariffs shook things up. Customers rushed to buy because they didn't know how high prices would go. It's been ups and downs, and we don't know what to expect."

New car prices are roughly $10,000 higher than they were five years ago. Automakers warn they cannot keep absorbing tariff costs, which could push prices up even further.

Tom Smith, an economics professor at Emory University's Goizueta Business School, says the next few months could be the best time to shop.

"If there are inventories of 2025 models still hanging out there, you might be able to get a good deal," Smith said. "And for used cars, sales are slow, so buyers may find room to negotiate."

To keep prices steady, Allrich says he's focusing on cars with stable resale values, like Hondas and Toyotas, while absorbing as much of the tariff costs as possible.

"People go through hard times," Allrich said. "As long as they know we're here, I think that's what's important."

Along with the tax credits, EV drivers in Georgia will also lose their ability to use HOV lanes alone starting Tuesday.

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