Summary
– Electric vehicle prices decreased by 8.5% year over year
– EVs are still $7,000 more expensive than the industry average
– Prices for some popular EV models decreased significantly in April
– EVs have higher incentive packages ranging from 15% to 20%
– The industry average price for new vehicles went up 2.2% year over year
Article
The price of electric vehicles (EVs) in the United States has continued to decrease, with the average transaction price (ATP) for a new EV in April being $55,252. This represents an 8.5% decrease compared to the previous year. However, despite this decrease, EVs are still approximately $7,000 more expensive than the industry average for new vehicles. Car manufacturers like Ford are looking to offer more affordable EV models to attract American buyers and potentially bridge this price gap.
Some of the biggest players in the EV market saw significant price drops in April compared to the previous year. Vehicles such as the Ford F-150 Lightning, Ford Mustang Mach-E, Tesla Model Y, and Hyundai Ioniq 6 all saw average transaction prices decrease by double-digit percentages. Overall, most EVs are being sold for around 4-5% less than they were a year ago. In addition to lower prices, EVs also benefit from above-average incentive packages that can range from 15% to 20%, including federal tax credits, dealer discounts, and regional incentives.
Despite the decreasing prices of EVs, the average transaction price of new vehicles in general has increased by 2.2% year over year. In April, the industry average price for a new vehicle was $48,510, while luxury brand prices averaged $64,076. Non-luxury vehicle prices also rose to $44,989, representing a 2.1% increase month over month. While the average price of a new vehicle went up compared to March, EVs remain significantly more expensive, with a price difference of almost $7,000, highlighting the need for more affordable EV options in the market.
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