Recently, SUVs have been the most popular vehicle on America’s roads. And drivers are buying more and more SUVs every month – throughout 2019, SUVs have made up for 70 percent of all new car sales. But because SUVs are so popular, auto manufacturers are making the newest models increasingly more expensive.
As a result, the average price of a new car is up 2 percent. But what many people don’t realize is that one type of vehicle is actually decreasing in price.
While other cars get more expensive, prices of electric cars are actually falling. Right now, you can get a new, eco-friendly electric vehicle at a steal of a price. And they’re only expected to keep getting cheaper.
U.S. Electric Cars Are Getting Cheaper
Although many people view electric cars as expensive, they’re actually becoming far more affordable – and cheaper – than all other gas-powered vehicles.
According to data analyzed by Cox Automotive, electric vehicle prices have fallen from $64,300 in 2018 to $55,600 in 2019. That’s a decrease of more than 13 percent in just one year.
One big reason for this more affordable trend in the Tesla Model 3. The Model 3, Tesla’s most affordable option, sells for $38,990. And that’s before any incentives are factored in.
As the technology becomes cheaper and electric vehicles become more popular, the price will only continue to fall. With Tesla currently dominating the electric market, introducing more affordable and budget-friendly options year after year, other automakers are being forced to lower their own prices.
And as a result, the electric vehicle price war is heating up between manufacturers. Though Tesla is currently the leader, big names like General Motors and Daimler have announced that they’ll be cutting prices and amping up their sales for electric cars.
Which Manufacturers Are Slashing Prices?
Many of the biggest names in the auto industry are entering the EV price war, announcing price cuts and new vehicles at lower price points.
GM, which manufacturers the popular Chevrolet Volt plug-in hybrid, announced price cuts of $5,000 on new Volt models. That will knock the hybrid’s price tag down significantly, making it an even more affordable competitor to Tesla’s Model 3.
And Daimler is offering price cuts for anyone who wants to lease a new EV. The Daimler Smart Fortwo Electric Drive will be available for a discounted monthly price that’s under $200. On top of this affordable price, Smart is also offering rebates that will lower the price for anyone who wants to buy the Smart Fortwo ED.
Nissan is getting into the price war too, trying to put the spotlight on its popular Leaf. The Nissan Leaf models have benefitted from price cuts in years past, and the manufacturer is showing no signs of slowing down its discounts.
Be Aware of Attractive Incentives for Electric Vehicles
The price war between auto manufacturers is heating up and causing the cost of a new electric vehicle to fall dramatically. But those cheap prices aren’t the end of the discounts.
On top of these manufacturer discounts, new car buyers who choose electric vehicles will save even more thanks to attractive incentives. The U.S. government offers incentives and credits to anyone who buys an electric car. And on top of that, you can even save money on your utility bill and auto insurance.
The following are a few of the additional incentives EV owners will enjoy.
Anyone who buys an electric or hybrid car will get a tax credit that ranges from $2,500 to $7,500. You’ll see this tax credit after purchasing your vehicle, but it decreases your overall purchase price and cost significantly.
Utility Bill Incentives
Many utility companies across the country offer special rates and incentives for those who own EVs. Meant to make powering and owning an electric car more affordable, these special prices often lower your time-of-use rates and significantly lower the cost of powering your car.
And there are other savings your utility company may offer for EVs. For example, Southern California Edison offers a $1,000 Clean Fuel Reward for EV owners, along with additional incentives for installing an at-home charging station.
Auto Insurance Incentives
Auto insurance is an expense no car owner can avoid. But if you purchase an electric car, you could save money every month. Major insurance companies, including Farmers, offer discounts of 5 percent on average for anyone who owns an EV or hybrid.
Where to Find the Best Offers
Incentives – and discounts – for electric vehicles are appearing everywhere. And as the price war intensifies among auto manufacturers, you’ll likely find your local dealerships offering lower prices, more incentives, and irresistible discounts.
But although automakers are starting to offer great deals on their electric cars, you’ll still have to do your research to find the best prices. And the best way to do this is to search online.
Often, auto manufacturers put their best deals online so they can attract more customers. So, searching online for electric car prices, offers, and incentives will help you see both manufacturer and individual local dealership options. You’ll be able to easily compare and find the best price and the most affordable EVs.