Summary
- EVs are criticized for being expensive but there are several options available for under $40,000
- Many EVs offer underpowered base models to keep the starting price under $40,000
- Federal tax credits can lower the starting price of EVs significantly
- Some recommended EVs under $40,000 include the Chevrolet Equinox EV, Hyundai Kona EV, Tesla Model 3, and VW ID.4
- The Fiat 500e is a good option for a small EV city car under $40,000
Article
Electric vehicles (EVs) are often criticized for being expensive, but it is important to note that the average new car purchase in America is over $48,000. While EVs have not yet achieved cost parity with combustion cars, there are several decent electric car options available for less than $40,000. Many manufacturers offer underpowered base models with smaller battery packs to keep the starting MSRP under $40,000, but it may be worth considering the potential full $7,500 federal tax credit that some EVs are eligible for.
One option under $40,000 is the Chevrolet Equinox EV, which offers an impressive EPA range of 285-319 miles and is eligible for the full $7,500 federal tax credit. The Hyundai Kona EV, priced at $32,875 with a range of 201-261 miles, is another affordable option, though it is not eligible for the federal tax credit. Tesla’s Long Range Rear-Wheel Drive Model 3, with a range of 303-363 miles, is priced at $42,490 but is eligible for the full federal tax credit, making it effectively cheaper.
Volkswagen’s ID.4 is a modern EV that provides ample cargo space and is eligible for the full federal tax credit, allowing buyers to upgrade to the Pro RWD model with 282 horsepower and 291 miles of range while staying under $40,000. The Fiat 500e is a great small city car option with a starting price of $32,500, an EPA range of 141 miles, and faster charging capabilities compared to other models in its class. While city cars may be a niche segment in the American market, the Fiat 500e offers a practical solution for urban driving.
In conclusion, while EVs may still have some drawbacks, such as limited range and higher upfront costs compared to combustion cars, there are affordable options available for consumers looking to make the switch to electric vehicles. With the potential for federal tax credits and incentives, buying an EV under $40,000 is more feasible than ever before. As the market for EVs continues to evolve and expand, we can expect to see more affordable and practical options for consumers in the future.
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