Mar 30, 2026
The war with Iran is causing major sticker shock at the pumps, with the price of gas up 43% year-over-year.
This recent spike, along with growing environmental concerns, has many consumers wondering if 2026 is finally the right time to buy an electric vehicle (1).
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But there aren’t as many incentives as before. ABC News reported that demand for EVs has tanked since the Trump administration cut the EV tax credit in September of last year (2).
The end of the $7,500 federal tax credit has had a significant impact on automakers. Cox Automotive data shows that EV demand hit a record 12% of all U.S. car sales in September 2025, the final month the credit was available. By January 2026, that share had fallen to just 6%.
So does that mean the electric car is dead? Industry experts say there’s still hope, despite the current administration’s stance. Here’s what you need to know about buying an electric vehicle now, and how to find a good deal, even without tax credits.
Trump vs. the electric car
The Trump White House also created another speed bump for electric car buyers (3).
In February, the president halted nearly $135 million in funding for EV charging stations in California, Colorado, Illinois and Minnesota. These states had opposed an earlier bid to claw back funds approved under the Biden administration. The move could make it harder for residents in these states to find reliable infrastructure, creating another hurdle for both consumers and the industry.
The Office of Management and Budget directed the Department of Transportation to cancel funding for more than 2,600 charging stations, citing “waste and mismanagement.”
At the same time, the president has promised to lower the cost of traditional gas-powered vehicles. According to Kelley Blue Book, the average price of a new car topped $50,000 for the first time in September 2025, leaving many Americans hesitant to buy in 2026 (4).
The White House’s “Freedom Means Affordable Cars” proposal intends to counter what it calls a “hidden cost-of-living increase” tied to stricter fuel economy rules (5). The plan would roll back regulations that pushed automakers to produce cleaner, more fuel-efficient vehicles.
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“Today is a victory of common sense and affordability,” said Jim Farley, CEO of Ford. “We believe that people should be able to make a choice … and we will invest more in affordable vehicles.”
Farley struck a different tone in 2024, when he called China’s EV manufacturers an “existential threat” to American automakers (6).
Critics say the policy shift could backfire. With gas prices rising, cheaper gas-powered cars may cost more to operate over time (7). Some analysts also warn the move could leave U.S. automakers behind global competitors, particularly in China and Europe, where EV adoption continues to grow.
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How to invest in an electric vehicle now
If high gas prices are making every fill-up painful, an EV could still make sense, even without tax incentives. Here are a few things to keep in mind:
Know the challenges
EVs are typically more expensive upfront than traditional cars. They also tend to depreciate faster. And if you live in an area with limited charging infrastructure, long charging times can be a drawback.
Shop secondhand
Despite the loss of tax credits, used EVs are becoming a strong value play. Analysts at Edmunds say electric vehicles now dominate the current used market (8).
“Steep discounts reflect how aggressive pricing and incentives in the new-vehicle market can quickly cascade into used values, even among current model-year vehicles with relatively low mileage,” they wrote.
They suggest keeping an eye on models like the Genesis Electrified GV70, Jeep Wrangler 4xe and Dodge Charger EV for some of the biggest deals.
Keep an eye on imports
As the rest of the world accelerates the shift away from gas-powered vehicles, international models may offer better technology and more bang for your buck. Staying up to date on global releases could you find a better deal.
What’s coming next
If you can afford to wait, prices may improve.
Volvo CEO Håkan Samuelsson told reporters in February that if they look ahead, in five years an electric car will probably be lower in cost than a combustion engine car (9). He expects manufacturing efficiencies and falling battery costs to close the price gap, offering consumers a more affordable path for a cleaner, climate-friendly future.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Trading Economics (1); ABC News (2); E&E News by Politico (3); Kelley Blue Book (4); U.S. Department of Transportation (5); Wall Street Journal (6); USA Today (7); Edmunds (8); Autoblog (9).
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Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
