Why electric vehicle prices are falling

Well, if you have been thinking about buying an electric vehicle, now could be the time. Right now prices are falling so fast they're almost as affordable as gas powered models. The national average for a new electric vehicle right now is a little over $55,000. Still pricey, but that is a nine percent drop in prices over last year, and that's before factoring in a federal tax credit. Meanwhile, the national average price for a used electric vehicle has dropped to less than $24,000. So that's a 27% decrease over the same time last year. And as of 2023, used cars are available for tax credits as well. So let's dive into this a little bit more with the editor in chiefofcars.com, Jenny Newman. So Jenny, what's driving these falling prices? Well, there's been a plateau in in EV sales over the last year or so. And so we're seeing inventory build up both on the used side and the new side, which means that there are deals to be had on both new and used E VS Let's talk about those deals because to me, you know, the 55 K we mentioned for a new EV that is still that's way out of my price range. How do the prices compare to gas powered vehicles for new and used? Well, for new vehicles, as you mentioned, 55,000 is the national average that is above what you would spend on a traditional gas powered vehicle. By about that, that average tends to be in the upper $40,000. So, you know, that's a significant difference. As you did mention, though, there are federal tax credits that do help ease the pay into your pocketbook. One other thing to consider is that to move some of these vehicles, especially on the new side, automakers are offering really excellent, you know, financing as well as leasing deals to really help move this inventory along. One other area of course people should be looking at is the used side. We are seeing huge interest in used E VS on cars.com. In fact, there's a 55% increase in used EV searches on our website. Fascinating. All right, we were just showing the graphic of those tax credits, so $7000 for new E VS 4000 dollar, $4000 for used. Are those tax credits going to change anytime soon? You could see more new used, new E VS being eligible for the federal tax credit as more and more automakers are building their are building plants and battery manufacturing here in the US. So as more automakers bring those plants to the US, more of these E VS will qualify for the federal tax credit. On EU side, we're not going to probably see an increase in the $4000 credit that's available to shoppers. But, you know, what's new for this year is that it is available right at the dealership. So you don't have to wait any longer for, you know, for April 15th to see if the tax credit would be applied. Interesting. Before we let you go, somebody at home may be thinking, you know, I want to do this, but I'm worried about the infrastructure. I'm worried about going on that long road trip and finding a charging station. Are, are the concerns surrounding infrastructure being addressed? They are being addressed. It's a little slow. I think for those of us who are EV owners right now, we'd love to see more charging stations. I myself, and I'm an EV owner. And with that increase in interest, you are seeing more people at those charging stations. But we know that there are programs that are well on their way to increase the number of public charging throughout the country, as well as automakers coming together to to help propel that forward. So there's movement there that that concern should ease, but it is certainly a big concern for shoppers right now. OK, Jenny Newman, it's been a lot of fun to talk to you. Thanks.