Electric vehicles (EVs) generally cost more than conventional gasoline-powered automobiles. But the pricing gap is shrinking.
According to the latest data from Kelley Blue Book, the average price paid for a new electric vehicle was an estimated $55,689, which is lower by 4.2% from a year ago. For comparison, gas-powered cars averaged about $48,800, which is up 1.5% year over year. Tesla, still the top player in the EV space, saw its average transaction price dip to about $52,900, down more than 9% from last year.
Pricing for new electric cars starts at $29,280, including the destination charge, for the cheapest electric car, the 2025 Nissan Leaf, and rises to over $100,000 for a luxury EV like the 2025 Mercedes-Benz EQS SUV (starting at $106,400, including the destination charge).
Overall, EV sales in the quarter were lower by 6.3% compared to the same time last year.
“The urgency created by the administration’s decision to sunset government-backed, IRA-era EV incentives was expected to create serious demand for EVs in the short term. If last month is any measure: Mission accomplished. July sales were near an all-time monthly record. At this pace, Q3 will be the best ever and then some, as buyers jump in before the big incentives dry up.”
EV Tax Incentives Going Away
If you’re thinking of going electric, don’t wait too long. The federal government offers up to $7,500 in electric car tax credits for qualifying new EVs, and up to $4,000 for eligible used ones. Leasing? You might still benefit from the full credit on new vehicles, depending on the dealership. These credits help narrow the price gap between EVs and gas-powered cars. However, here’s the catch: Those credits disappear on September 30. Lawmakers passed a new spending bill that eliminates electric car tax credits. Additionally, the now-in-effect tariffs on imported vehicles and parts could drive up prices on all cars, including EVs.
If you’re considering an electric vehicle, acting sooner could save you thousands.
Fully electric cars run on electricity and do not need gasoline, regular oil changes, or other maintenance that gas cars require. Typically, fuel costs more than electricity, which is another money-saver for people who drive electric vehicles.
RELATED: How Much Does It Cost to Charge an Electric Car?
