Has there ever been a better time to buy an EV?

Mint

12 hours ago

EV prices are low but U.S. consumers aren't that interested.
Not even bargain-basement deals are enough to entice U.S. drivers to go all-in on electric vehicles.
A Hyundai dealership in New Jersey is hyping a $169-a-month lease on its Ioniq 6 sedan, which carries a sticker price of about $38,000, making it far less expensive than a comparably priced lease on its gasoline-burning models.
Kia will lease its small Niro EV SUV for as little as $129 a month.
And a GMC dealership in Indiana touts the Hummer EV—with a $100,000 sticker price—for a monthly lease payment of $650, similar to the monthly payment for a gas-powered car that costs half as much to buy.
The dealership in Kokomo, Ind., sells about one Hummer EV a month, sales manager Travis Shedron said. Curious shoppers will check it out, then opt for a gas-powered Cadillac Escalade or GMC Denali instead.
'They're doing well, but they're not selling as well" as gas-powered alternatives, he said of the Hummers.
Across the industry, sales of battery-powered cars are falling despite financial incentives.
Even as automakers pile on the financial incentives to entice buyers, EV sales are falling. In June they were lower by 6.2%, the third straight monthly decline for battery-powered cars, according to estimates from Motor Intelligence, an industry-research firm. Tesla, which accounts for roughly half the EV market in the U.S., said last week that its global sales dropped 13.5% during the second quarter.
The plunge comes despite EV makers spending record amounts on customer discounts and incentives. Meanwhile, Republican lawmakers are phasing out the $7,500 EV tax credit that has been in place for years to help boost sales.
Why are so many American drivers hesitant? 'It's [driving] range, it's cost and it's charging infrastructure," said Mark Barrott, automotive lead at consulting firm Plante Moran. 'They've always been the big three reasons."
Despite EV skepticism, EV models have proliferated. There are 75 models on sale in the U.S. this year, up from fewer than 20 on offer in 2020. There are twice as many incentives offered to buy EVs as exist for gas-powered cars, said Stephanie Valdez Streaty, an analyst for Cox Automotive. Promotions covered more than 14% of the average transaction price in May, according to Cox's data.
Vehicles were on display in May at a car expo in Washington, D.C., hosted by the Transportation Department.
Tesla's price drops have driven the market, she added. During the most recent quarter, Tesla offered 0% financing for its Model 3 sedan, which starts at roughly $42,000, and the Cybertruck, which starts at $69,990.
Last week, the Tesla showroom in Manhattan's Meatpacking District was busier than traditional car dealerships lining 11th Avenue in Hell's Kitchen, but tourists accounted for most of the foot traffic. Out-of-towners seemed more interested in snapping photos of Tesla's Optimus humanoid robot than taking a test drive.
Vincent Darbouze of Quebec stopped to compare the latest Tesla models with the Swedish Polestar EV he owns. He said he has no plans to trade in his vehicle now, but could be convinced by the right financial incentives.
'I know the tax credits in the U.S. are kind of done," he said.
The EV tax credits targeted by Republicans have been a key driver of electric-car sales, particularly among less-affluent buyers. For new cars, the credit amounts to as much as $7,500 off the price, while used-car costs can be cut by up to $4,000. President Trump's 'big, beautiful bill" puts an end to those credits as of Sept. 30.
A Tesla car dealership in the Brooklyn, N.Y. Federal EV tax credits are set to end in September.
Some drivers may be motivated to buy or lease an EV before fall, but analysts aren't expecting a groundswell of interest. That is because making the leap to an EV can be daunting because of the cost of home chargers and the lack of a robust charging infrastructure in many U.S. cities and along major highways. Many carmakers including Ford, BMW and Hyundai are trying to allay these worries with deals for free home-charger installation or offers to cover the cost of charging at a public station.
Leasing has remained the primary way for dealers to move EVs off their lots. Wealthy customers and pricier EVs haven't been eligible for the EV credit that is expiring, but those restrictions haven't applied to leased vehicles. In the fall, both sales and leases will have to succeed or fail in an unsubsidized EV market.
'That gives us basically 60 days to figure out what our plan is," said David Christ, general manager of Toyota in North America. 'The ground under the transactional experience for the EV is about to change and we'll have to reset."
Write to Ryan Felton at [e-mail], Sharon Terlep at [e-mail] and Imani Moise at [e-mail]