Electric Vehicle Deals Heat Up as Inventory Soars: Buyers Gain Upper Hand
Electric Vehicle Market Shifts: More Deals for Shoppers as Inventory Grows
In a surprising turn for the electric vehicle (EV) market, dealerships across the country are experiencing a surge in inventory, leading to extended periods before sales and more attractive deals for potential buyers. Industry data reveals that EVs are now spending nearly three months on dealer lots before being sold, a significant increase from previous years.
At the end of July, dealers reported an average of 81 days to sell EVs, marking a 75% increase from the same period last year. This figure stands in stark contrast to the industry average of 57 days for all vehicles. The oversupply is further evidenced by a 100-day supply of battery-powered vehicles at dealerships, compared to a 68-day supply for other powertrains.
This shift in market dynamics is translating into tangible benefits for consumers. With a glut of EVs available, shoppers now have more options and increased negotiating power. Automakers are responding with enhanced leasing deals, discounts, and incentives to move inventory. The average price paid for a new EV in July was $58,619, a 1% decrease year-over-year and notably $4,366 less than the average price for a new plug-in hybrid.
Despite the overall rise in EV sales, the growth rate has slowed, prompting automakers to adjust production schedules. Affordability has become a key focus as the market transitions from wealthy early adopters to more cost-conscious consumers. However, the average EV price still remains approximately $10,000 higher than that of any new car.
Leasing has emerged as a popular affordability solution, particularly in light of new restrictions on the $7,500 federal tax credit for EVs. Leased vehicles are exempt from certain pricing and parts-sourcing restrictions, and income caps do not apply, making them an attractive option for many consumers.
Automakers are capitalizing on this opportunity with competitive leasing offers. For instance, Hyundai is offering the Ioniq 5 for $187 a month for 33 months, with approximately $4,000 due at signing. This contrasts sharply with a traditional car loan for the same vehicle, which could cost around $800 a month for 60 months with a similar down payment.
Jessica Caldwell, Edmunds’ chief director of Insights, emphasizes the importance of monthly payments in consumer decision-making. “For most car shoppers, the monthly payment is more important than the sticker price,” she notes, highlighting leasing as a viable strategy to leverage the federal tax credit.
As the EV market continues to evolve, with leases now accounting for almost 70% of all new EV sales, it appears to be an opportune time for interested buyers to explore their options in the electric vehicle segment.
