This week marks the end of the federal EV tax credit. The shift is expected to ripple through buyers’ wallets and dealership balance sheets alike. Yet for many dealers, the financial squeeze started weeks earlier, thanks to delays in the IRS’s approval process that have slowed reimbursements, leading some to go as far as holding cars until the money came through.

Read: Dealers’ Paperwork Errors Are Costing Buyers Their EV Tax Credits With The IRS

The vast majority of used and new EV buyers who are eligible for the credit receive it as an upfront rebate at the point of sale. Typically, car dealerships themselves hand over this money after receiving online approval from the IRS. It’s then the IRS’s job to repay dealers.

Bottleneck in the System

Speaking with CNBC, several dealers say that before this month, this process usually only took a few days. Now, many dealers have been left in the lurch for upwards of two weeks and haven’t been paid back by the IRS. For dealers selling dozens of EVs with the tax credit, this quickly adds up.

According to the founder of Green Wave Electric Vehicles in New Hampshire, Jesse Lore, the dealer is out about $100,000 after paying the credit at the point of sale, but has not yet been reimbursed by the IRS. Lore added that roughly a dozen applications submitted to the IRS since September 15 were still listed as pending.

“I know for a fact there are dealers saying, ‘We’re not doing it anymore. We’re not getting paid,” Lore told CNBC. “Others are saying [to consumers], ‘We’re holding the cars, and you can’t drive the car home until we get paid in full.’”

The co-owner of AutoTurst USA in Florida, Gary Pretzfeld, added that he has paid out between $80,000 and $90,000 in rebates and is still waiting to be paid by the IRS. A spokesperson for the National Automobile Dealers Association said it is aware of the delays.

“Anecdotally, we have heard some dealers report that recent submissions have been placed in pending status since last week,” the spokesperson said. “NADA has been and continues to work with the IRS and the Department of Treasury regarding the portal and they have been cooperative.”

Unanswered Questions

What’s causing the slowdown remains unclear. Some dealers chalk it up to the IRS drowning in paperwork, citing thinner staffing and a surge in EV sales. Others, however, lean toward a more conspiratorial view, suspecting the slowdown might be a deliberate tactic by the Trump administration to put a dent in EV sales.

An official from the White House says that all valid EV tax credits that are applied for before the September 30 end date will be granted and paid. But, until this happens, many dealers will be living with some serious anxiety.

Shoppers weighing the cost of going electric may notice a curious difference between the US and Canadian markets. Nissan has confirmed US pricing for the new Leaf, which still holds its spot among the most affordable EVs available at just under US$30,000. North of the border, however, the same car carries a steeper price tag, leaving dealers, executives, and analysts to explain the gap.

The automaker has not yet shared pricing for the base Leaf S in Canada, so comparisons focus on higher trims. At current exchange rates, the S+ comes in about US$2,600 higher in Canada, the SV+ is roughly US$500 more, while the range-topping Platinum+ is actually US$800 less expensive than in the US.

More: Nissan Says We Made A Mistake With New Leaf’s Taillights

*Prices exclude destination and handling fees.

Looking Back at the First Leaf

When we compare the 2026 MY to the original Leaf from the 2011 MY, without accounting for inflation, the starting price in the US market is actually lower today (US$ 29,990 versus 32,780), something that was mentioned as a notable achievement by Nissan. However, in Canada the model has gotten more expensive than its grandfather (CA$ 44,998 versus 38,395). So what explains the difference between the two markets?

So what explains the diverging trends? Nissan Canada spokesman Didier Marsaud told Auto News: “Vehicle pricing is determined by a number of factors, including vehicle specifications, market competitiveness, and more, hence why Canadian and U.S. pricing may not be exactly the same.”

Extra Features for Cold Climates

One major factor is equipment. The Canadian-spec Leaf S+ includes heated front seats, heated mirrors, a heat pump, a battery heater, and LED turn signals as standard features, none of which are included on the equivalent US model. These additions are practical for colder regions and arguably add value for Canadian buyers.

More: Nissan’s New Leaf Could Be In Trouble Before It Even Hits The Road

Robert Karwel, analyst at J.D. Power Canada, echoed this point. He noted that differences in packaging and market dynamics often lead to Canadian models being less stripped-down than their US counterparts. “This is not an uncommon position to take in Canada, where models are more likely to be equipped not as strict ‘price leaders’ but in a way that reflects what most Canadians will actually buy.”

Despite the higher sticker price, Karwel pointed out that the Leaf still lands as one of the most affordable EVs “at transaction price” in Canada. Its cost undercuts several direct competitors, including the Chevy Equinox EV at CA$48,433, the Kia Niro EV at CA$48,620, and the Hyundai Kona Electric at CA$49,279.

Steve Chipman, CEO of Birchwood Automotive Group, which operates 24 dealerships across Canada, acknowledged that cross-border TV ads showing US prices might cause confusion. Still, he hopes buyers recognize the realities of regional pricing. “This is Canada and this is the pricing,” he said.

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