Electric vehicles (EVs) are currently spending nearly three months on dealer lots before being sold, according to data from Edmunds. This extended stay is a significant increase from the previous year and is much longer than the industry average for all types of vehicles. As a result, there is a surplus of EVs available for purchase, giving customers a wider selection and more negotiating power when it comes to pricing.
With the increased inventory of EVs, automakers are offering more leasing deals, discounts, and incentives to entice buyers. This has led to a decrease in the average price paid for a new EV, making them more affordable for consumers. In fact, the average price paid for a new EV in July was lower than that of a plug-in hybrid, indicating a shift in demand towards more practical green car options.
As the market for EVs continues to grow, automakers are adjusting their production to meet changing consumer preferences. Affordability has become a key factor in the EV segment, as more budget-conscious shoppers are entering the market. While the average price of an EV still exceeds that of a traditional vehicle, leasing has emerged as a cost-effective option for those looking to drive an electric car.
Leasing an EV is currently the best affordability hack for consumers, according to Jessica Caldwell, Edmunds‘ chief director of Insights. Leasing allows buyers to avoid some of the restrictions associated with purchasing an EV, such as qualifying for federal tax credits. Car companies are capitalizing on this loophole by offering attractive leasing deals on their electric models, making them more accessible to a wider range of customers.
For example, Hyundai is offering the Ioniq 5 for a low monthly payment of $187 for 33 months, with a reasonable down payment. This leasing option is much more affordable than financing the same vehicle with a traditional car loan, making it an attractive choice for budget-conscious buyers. Leases are becoming increasingly popular, accounting for a significant portion of new EV sales.
In conclusion, the current market conditions for EVs present a unique opportunity for consumers to purchase or lease an electric vehicle at a more affordable price. With an abundance of EVs available and attractive leasing deals being offered by automakers, now is a great time to consider making the switch to an electric car. By taking advantage of these affordability hacks, consumers can enjoy the benefits of driving an environmentally friendly vehicle without breaking the bank.