Prices on electric vehicles are tumbling as dealership lots are filling up with more models amid cooling consumer demand. The result is that EV prices, in some cases, are approaching those of gas-powered cars, after adding in federal tax credits.
The average price of a new EV in May was $56,648, according to Kelley Blue Book, or about 15% lower than two years earlier, when the average price was $65,000. Meanwhile, used EV prices plunged to $28,767 last month, representing a 42% decline from $40,783 a year earlier, according to iSeeCars.
Prices are falling, in part, because EV sales have hit a plateau in the past year or so, Jenni Newman, the editor-in-chief of Cars.com, told CBS News. Still, the sticker prices on EVs tend to be higher than those of gas-powered cars, although that gap is narrowing as dealers cut prices on electric-powered vehicles.
“So we’re seeing inventory build up, both on the new side and the used side, which means there are deals to be had,” she said.
While a record 1.2 million EVs were sold in the U.S. last year, according to Cox data, experts expect 2024’s sales to remain at about that level.
Federal tax credits of up to $7,500 for new EVs and up to $4,000 for qualifying used EVs are helping convince some Americans to buy electric. After applying these credits, EV prices are even closer to that of gas-powered cars, with new models of the latter selling for an average price of about $45,000, Newman noted.
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