There’s zero question about the fact that electric vehicles (EVs) are far more expensive than gas-powered cars. Despite the government’s best efforts to encourage (actually bully and/or coerce) Americans into buying EVs, the reality is that these two things just don’t mix, especially when every part of life is already too expensive (yay inflation). So it may come as a bit of a surprise that if you want a deal on cars, EVs are actually the place to look right now.
Here are Five Fast Facts on EV deals:
- 📉 Market Trends - For the last three years, EVs have been gaining steady market share. Sure, some of it is because of the government’s “green” incentives, but as more and more EV models become available more people have started to take interest. The problem is that, given the high price tags of most EVs, most of the people who could afford to buy one already have. All that’s left is us regular schlubs who can’t afford them, and that makes it more difficult to sell existing EVE inventory that is building up for the first time ever.
- 🔋 Battery Power - One of the most expensive parts of an EV is the battery (remember the guy who blew up his Tesla rather than pay for a $22k replacement battery?), but as production volume goes up the prices on those are coming down, too.
- ✂️ Slashing Prices - Loads of inventory usually results in deals that help move cars off the lots and into garages, and with EVs this is no exception. Last year, EVs were selling for about $2k above sticker price, but this year the average price (outside of Teslas) is around $1600 below sticker price. For example, a Ford Lightning has dropped by about $10k this year. Even Tesla has started offering discounts on most of its models!
- 👍 The Reception - The deeper discounts are working, as EV sales are picking up. Ford’s Lightning sales jumped by 600%, and Lucid’s CEO has said their new pricing was “well received.” And Lucid’s prices range from $82k up to a quarter million! Who knew the rich would respond to discounts too?
- 🤔 Still Problematic - Despite this movement in the market, there are still plenty of issues. Range anxiety is real, and access to charging stations is still limited. Only adding to the angst are the frequent (and real) stories about people getting stranded, cars struggling in the cold, drivers being unable to get in or out of the car, trucks being unable to tow effectively, or many other issues. Even the Ford CEO himself had issues driving an EV around.
🔥Bottom line: Despite the recent reversal of the increasing cost trend, EVs are still far more expensive than gas-powered cars, and that is ultimately the biggest barrier to most potential buyers. When you add that on top of the other problems, it’s just not a great option for most people, even if they can get a “good deal” on one right now. But with everything else going on in the car market, those are the only deals around.
What do you think of EVs?
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