Electric cars generally cost more than conventional automobiles. But the pricing gap between the two is rapidly closing.
According to data from Cox Automotive, parent of Kelley Blue Book, the average transaction price for electric cars was $53,469 in July 2023, vs. gas-powered vehicles at $48,334. Tesla contributed to a substantial drop in EV prices since late last year as it cut prices.
The federal government offers qualified buyers electric car incentives of up to $7,500 for select new fully electric, plug-in hybrid, and fuel-cell vehicles. Those looking to lease an EV may find a dealership offering qualified buyers a $7,500 credit. Buyers looking for used electric cars may qualify for up to $4,000 on specific models. That, too, helps lower the price and close the gap in the pricing of electric vehicles compared with their gas counterparts.
Also, fully electric cars run on electricity and do not need gasoline or regular oil changes and other maintenance that gas cars require, which is another cost savings. Typically, fuel costs more than electricity, which is another money saver for people who drive electric vehicles (EVs).
RELATED: How Much Does It Cost To Charge an Electric Car?
“While EV prices currently align more closely with luxury versus mainstream, the market continues to grow and evolve with more choices hitting the scene all the time,” said Brian Moody, executive editor for Kelley Blue Book. “It’s no longer just ‘which Tesla is available,’ but rather an industry-wide boom with more EVs on the horizon from Ford, GM, Hyundai, and other manufacturers.”
Related Electric Car Articles:
- Leasing vs. Buying an Electric Car in 2023
- Bridgestone Turanza Tires Test for EVs
- Electric Car Range: Everything You Need to Know
