Electric cars generally cost more than conventional automobiles. But the pricing gap between the two is closing.
According to data from Cox Automotive, parent of Kelley Blue Book, the average transaction price for electric cars was $55,242 in April, 2024, vs. gas-powered vehicles at $44,989. Tesla contributed to a substantial drop in EV prices as it cut prices in the last year.
“Notably, lower EV prices have supported EV sales volume in the US, particularly for key Tesla models,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive. “The average transaction price for a new EV decreased by 9% in Q1 (2024) compared to Q1 2023 and dropped 3.8% quarter over quarter. However, as noted in our Q1 EV sales report, lower EV prices have not generated appreciably higher sales volume so far.”
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).
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