Electric cars generally cost more than conventional automobiles. But the pricing gap is shrinking.
According to the latest data from Kelley Blue Book, the average price paid for a new electric vehicle was $57,734. That’s basically unchanged from a year ago. For comparison, gas-powered cars averaged $48,799, which is up just 1.1% year-over-year. Tesla, still the top player in the EV space, saw its average transaction price dip to $55,277, down 2.8% from last year.
In general, pricing for new electric cars starts at $29,280, including destination charges, for the cheapest electric car, the 2025 Nissan Leaf, to upwards of $100,000 for a luxury EV like the 2025 Mercedes-Benz EQS SUV (starts at $106,400, including destination charges).
The average used EV list price was $35,874 in April, the latest data available. That represents a 3.8% increase compared to last year.
If you’re thinking of going electric, now is the time. The federal government still offers up to $7,500 in electric car tax credits for qualifying new EVs, plug-in hybrids, and fuel-cell vehicles and up to $4,000 for eligible used ones. Leasing? You might still benefit from the full credit, depending on the dealership. These incentives help narrow the price gap between EVs and gas-powered cars. However, here’s the catch. Those credits could soon disappear. Lawmakers are debating a new spending bill that would eliminate EV incentives. Additionally, the now-in-effect tariffs on imported vehicles and parts could drive up prices on all cars, including EVs.
If you’re considering an electric vehicle, acting sooner rather than later could save you thousands.
Fully electric cars run on electricity and do not need gasoline, regular oil changes, or other maintenance that gas cars require. Typically, fuel costs more than electricity, which is another money-saver for people who drive electric vehicles.
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