The $7,500 federal EV tax credit has now been gone for a month, and the effects are starting to show. After a surge of last-minute buying in September, October brought a noticeable cooldown as the market adjusted to life without the incentive — proof of how affordability helped spur EV demand. Even so, the EV market isn’t in total collapse; it’s recalibrating. Edmunds data from October 2025 shows shopper engagement with EVs remain even as buying patterns and price expectations begin to shift: ⚡️EV consideration on Edmunds dipped from 12.7% in early September to 9.0% in mid-October, showing that shopper curiosity hasn’t completely fallen off a cliff even as affordability issues persist. ⚡️Average transaction prices for new EVs rose to $65,021, the second-highest on record. After months of deep discounting, we’re seeing fewer deals and a higher share of premium EV models in the mix — a sign that today’s buyers are more committed to embracing electrification than chasing short-term savings. ⚡️EV leasing eased to around 60%, down from the elevated levels of recent months. That’s still high by historical standards, but understandable given ongoing uncertainty around resale values and long-term ownership. For many, leasing remains the most comfortable way to step into an EV. ⚡️ Consumers are reshaping how they shop for EVs. With fewer incentives and leaner inventories, more buyers are paying cash or using outside financing instead of dealer programs. This signals a more deliberate, value-driven approach to car buying, and a market starting to normalize after months of incentive-fueled urgency. So what does this mean for the market? Automakers are already adapting by extending leases, trimming MSRPs, and testing certified pre-owned programs to keep shoppers engaged. Many dealers are already leaning into this moment by emphasizing value beyond incentives and helping buyers understand total cost of ownership, charging, and range confidence. It’s still early days, but this likely marks the start of a more grounded, sustainable market — one where strong products and value, both in ownership experience and resale potential, matter more than temporary deals. Read the full analysis here: https://lnkd.in/gVv76X8M #EdmundsInsights
Ronald Will
3w
Hi Jessica: I'm finding some terrific deals on late model EVs. Even premium models, like Cadillac and Audi can be had in the $30K range. I'm looking at a slightly used Cadillac Lyriq to trade in my Honda Clarity PHEV. Ron Will
VisQuanta
3w
Well put. This is where real product strength and customer education start to matter more than incentives. The market’s maturing, not crashing.
Frank Brcak
3w
If the EV execs want to sell more cars then directly address the resale disaster awaiting each EV owner. Offer to reconfigure a used EV to either a hybrid or combustion engine, (I know, God forbid). The vehicle becomes another source of income plus the owner stays in the fold.
Great insights! Conventional logic would suggest an increase in future values from higher new vehicle transaction prices and lower future used supply. Conversely, the transition to OEM sponsored incentives combined with a consumer environment that may struggle to sustain/grow demand (due to regulatory policy changes that will negatively impact EV viability) would negative any gains from the former variables.