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Tax Deduction Canceled, But Honda Made Its Electric Vehicle Discounts Even More Advantageous

Despite the fact that the federal tax credit for electric vehicles may soon expire, advantageous offers remain for buyers, especially at the end of the month. Even though the 2026 model has not yet arrived at dealerships, generous discounts are expected, which could reach $9,000 after the credit expires. For the SUV, which is already selling out quickly, these additional incentives could give Honda sales an extra boost.

Discount Structure

Offer Details

The discount of up to $6,000 will be valid for those who finance or lease a new electric vehicle through Honda Financial Services. This offer will be valid until November 3rd.

Additionally, it is noted that a $3,000 incentive will also be offered on the 2026 model for buyers switching from a competing brand or from another Honda model. Interestingly, Honda has not yet announced the final pricing details for the 2026 Prologue.

Why the 2025 Model Remains Advantageous

Despite the good news that Honda will continue selling the Prologue with advantageous offers until next year, interested buyers would be wise to purchase the 2025 model by the end of this month.

Currently, the 2025 model is available with 0% financing for up to 72 months and includes financing bonuses of $9,500, in addition to the $7,500 federal electric vehicle tax credit. This totals savings of up to $17,000. Furthermore, additional discount offers are also available for the 2025 Prologue, which in some states increases the total savings to $20,300.

Most likely, the 2026 version will be largely identical to the 2025 version. This model gained an additional 12 miles (19 km) of range in the base trim, while the range for the EX and Touring trims was increased by 13 miles (21 km) and 10 miles (16 km) respectively.

Such aggressive sales incentive programs indicate growing competition in the electric vehicle market. Honda is clearly trying to strengthen its position by offering significant discounts even before the updated model goes on sale. This may also indicate that the manufacturer anticipates certain difficulties in promoting electric vehicles after the expiration of government benefits, hence compensating for their absence with its own incentives.

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